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How Could You Bailout Banks Again Without "Bailing Them Out?"

I read a post earlier about the idea of a "secret bailout" of the banks by Phil Davis.  After some thought it seems this could very well be the case.  Political pressures about bailouts are at a level where no politician wants to speak of the term.  Ireland for example says they don't need one, but need a "restructuring of their debt."   However you want to slice it, a spade is a spade.

But in America we pride ourselves on saying one thing and secretly doing another.  That has been the tempo of this administration (budget reconciliation to pass health care and financial reform to name a few).  So how could the politicians get by helping the insolvent banks without directly helping them?  The answer is QE.  The Fed prints money that goes to dealers to buy treasuries for the Fed.  Lets change the Fed into a new name, say Mr. Smith.   Mr. Smith calls his brokers to purchase securities.  His choice: US Treasuries with varying maturities.  Mr. Smith's broker does as ordered and purchases the securities, minus the fee's and commissions to do so.  But in Mr. Smith's case he has so much purchasing power that he must spread out his orders through various brokers.  Upon the completion of the purchases, the brokers reap around 5% in fee's and commissions.  This essentially will net the brokers with $30billion in fees over the life of the program.  Oh yea, these fee's are revenue for the brokers.  See the connection?   Mr. Smith (the Fed) just gave his primary brokers (all major banks working with the POMO) $30 billion in fees which will result in cash and equivalents increasing proportional to that amount.

Not to shabby huh?  Those guys over at the Fed are throwing all of the cards on the table.  The first is that the treasury has to few of buyers so they must now buy our debt that no other country wants, plus using inflation to inflate away debt (sorry monetizing debt), and then on top of it all giving the banks an additional $30billion in revenue which is cash for their balance sheets.  Bravo guys! Bravo!