Occupy San Luis Obispo County Information

While the Media was playing up the $800 Billion Federal Governent Corporate Bailout during the Financial Crisis 2008 to 2010, the US Federal Reserve extended a $16 Trillion bailout to US and foreign Corporations. This Bailout was invisible to Congress, the President, and the People until revealed by a General Accountabiity Office report: "Federal Reserve Board: Opportunities Exist to Strengthen Policies and Processes for Managing Emergency Assistance" (GAO-11-696) Page 131.

This activity by the FED came as a total surprise to the House of Representatives who had the impression they controlled the US purse strings, and had set the US debt cieling to $1 Trillion.

As it turns out Ben Bernenke (The Chairman of the Federal Reserve) had pulled out a little used clause in the Federal Reserve Act of 1913 (Section 13, Paragraph 3.) It contained a second surprise for just about everyone: the paragraph authorized loans not only to banks and financial institutions, but rather to any corporation or even individual the Fed chooses to loan to, domestic or foreign. It took a year of legislation by Congress and a Freedom of Information filing by Bloomberg to pry the information out of the Fed Chairman who refused to divuldge the "who" and "how much" to Congress or anyone public entity.

One outstanding question arises from the fact that some of the trillions went to foreign central banks, who will not now reveal who they lent the money to. As the dust settles however it has become apparent (November 2011) that US institutions may be on the hook for $10 Trillion owed to foreign institutions.

This revelation was revealed in a Princeton Economist presentation to the IMF Global Banking Glut and Loan Risk Premium. Reported on in the Washington post December 22, 2011 .

As the crisis ensued some banks (B of A to name one,) moved their risky European derivatives (Federal Reserve Act Section 23a) into their commercial depository and investment subsidiaries in the US so as to give them access to more Fed discount loans and the insurance the US Taxpayers provide should their new gambles go wrong.

Bank of America: $75 Trillion

The Federal Reserve has signalled it favors the big banks putting their risky investments in with mom and pop's deposits. The FDIC which is responsable for insuring these accounts and paying off depositors in the event of a bank failure is objecting to this move.

This "Shell Game" involving moving ever more massive debt and risky investments one step ahead of default seems, too big not to fail at this point.

Some people have a problem with the Fed playing fast and loose with our currency so as to prop up stock markets, and save companies with horrible business practices and bad gambling debts. These latter are not even within the purview of the Feds Job description. Bernenke at least should be brought up on charges for wholesale Market Manipulation.