Collateral Damage (Banks' Bad Loans)
The money that the big banks lost in the ongoing housing meltdown is going to come out of our pockets with the help of "your" government. It is being done indirectly, so as not to illicit the well-deserved outrage this move would incur if it were done openly. Still, few in the corporate media will tell you how the shell game is going to go down. The big media people and the big bank people both have an interest in keeping the shell game hidden. Don't expect them to inform you of this. Their real goal may even be to conceal this information from you while blathering endlessly about the horse-race aspects of the Presidential campaign or even the latest rehab antics of some pop-tart.
A clue can be found here (under the headline "Central Banks Pumping Billions into Banking System"), where the writer says of the huge money auctions now in progress, "The auctions held by the Fed will set interest rates on borrowings by banks from the Fed. The banks will be able to post any collateral they wish, including illiquid securities such as collateralized debt obligations, as they now can do at the discount window. But while it often becomes known which banks borrow at the discount window, the auction procedures are designed to keep the identities of the borrowers secret."
Don't get distracted by the showy wave of the magician's hand, follow the money..
(continued- click WEDNESDAY below and scroll down for rest of article.)