Everything old is new again. You've probably heard me say that before but it never gets old when I'm the one saying it. The Taibblog nails the evidence behind the secret multitrillion-dollar Fed lending that saved the largest banks in 2008. Know that the largest recipients never disclosed the sums they borrowed. Know that the same bailout recipients also participate as the primary Treasury dealers. Know that those dealers earn riskless profits from the spread between their zero-cost borrowing and positive yields on Treasuries they hold. Know that the TBTF SIFIs have not changed their behavior at all.
We can expect the next phase of the unresolved crisis to come unannounced. The watchdogs are asleep and the crony capitalists have distracted us with self-serving platitudes. No less a personage than Warren Buffett assures us that his favorite banks will not get the country in trouble. He is too clever by half. He secured his banks with bundled campaign contributions to last year's successful Presidential contender. He will be rewarded with bailouts for his banks if they get into trouble, so he is disingenuously correct by saying the banks won't be getting the country into trouble. The country got itself into trouble by handing control of the government to Wall Street. There's no going back now.
