Remember how the House passed banking reform bill gave the Fed the authority for up to $4 trillion in new bailout funds, and how the provision was removed from the bill when it passed the Senate and was signed into law?
Well, the $4 trillion figure is back — in the form of how much money the Fed needs to print:
“Investors have been mulling over the prospects for QE2 since August, when Bernanke said at the Fed’s annual retreat in Jackson Hole, Wyo., that the central bank would consider all manner of tools to support the economy.
But many observers believe much more than $600 billion will be needed. Economists at Goldman Sachs said this fall they believe that to truly fill the private sector demand shortfall, the Fed would need to buy some $4 trillion in securities.”
The world is awash in debt, and now the Fed is supposed to become the bank of last resort for the planet. And in a 60 Minutes interview to be aired on Sunday, the Bernanke doesn’t rule out the Fed printing more money — known in bailout-speak as QE3.
Why else would $4 Trillion be needed?
The financial elite wants the Fed to cover their losses, but it is time the American public forces the bond buyers take the loss. You know, like the free market is supposed to work.