Lynn Swearingen (c) copyright 2010 ALL RIGHTS RESERVED

In yet another round of finger-pointing, the Dodd-Frank Wall Street Reform and Consumer Protection Act passed last year turned up this bit of information:

Audit: Fed gave $16 trillion in emergency loans

I spent mine already – how about you? Didn’t get it? That is because it wasn’t for the “little people”. Oh no. Just like the skinny new kid on the block gives his brought from home outlawed Twinkie to the big kids at school so they’ll play with him, the Administration(s) played nice with the very people who are now being condemned as the “causation” of various bubbles, CEO raises, and “unexpected Economic downturn”. Are we seeing a pattern here?

The U.S. Federal Reserve gave out $16.1 trillion in emergency loans to U.S. and foreign financial institutions between Dec. 1, 2007 and July 21, 2010, according to figures produced by the government’s first-ever audit of the central bank.

Last year, the gross domestic product of the entire U.S. economy was $14.5 trillion.

The audit also found that the Fed mostly outsourced its lending operations to the very financial institutions which sparked the crisis to begin with, and that they delegated contracts largely on a no-bid basis. The GAO report recommends new policies that would eliminate such conflicts of interest, and suggests that in the future the Fed should keep better records of their emergency decision-making process.

One wonders why if the “Recession” was so devastating did Administrations continue to loan monies while passing TARP, QE1, QE2, and the infamous “Cash for Clunkers” program which added Trillions to the National Debt? Someone much more enterprising than myself will probably compare the Report (scribd) with the National Debt pattern and write a Nobel Prize winning analysis.

Interesting. Of course I should point out that if the Fed was ever required to be audited – more outrageous facts might come to light. Gee – where have I heard that before.

Lesson learned: It doesn’t matter if you “share the wealth” when you are left holding the empty bag.