Neel Kashkari explains TARP and Fractional Reserve Banking

Neel Kashkari (Knee-pad Cash and Carry) explains the TARP fractional reserve benefits to the economy. :)

Wow, I had no idea that leveraging $700 billion dollars into over $7 trillion was such a benefit to our economy. Neel makes it sound like he is the new savior to the capitol markets.

Please pay particular attention at 6:30 where he is talking about no hard cap on the TARP to FED lending facility ratio. They can just "leverage" i.e. print money as much as they want.

He first explains that healthy banks need the capitol much more than the failing ones. The TARP is a $250 billion tool they can use.

:32 "Knee pad guy" What are the guiding principles. Holy toledo, this guy gushes love all over Neel.

2:05 Federal Reserve Lending Program

3:08 AIG $40 billion in addition to FED "lending facility"

3:50 "Call me Neel"

5:51 Proposed "Asset-backed financing" for commercial markets.

6:30 TALF "Asset-backed lending facility" The FED can leverage a TARP $20 billion dollar investment into $200 billion with no cap. Neel talks about a "scalable" and "no hard cap I am aware of" on this facility.

8:39 Will we get our money back under the CPP?

Fractional Reserve Banking = FRB
FRB = Federal Reserve Board
Federal Reserve Board = crooks

Category:

News & Politics

Tags:

• tarp
• asset backed lending
• fractional reserve
• end the fed
• federal reserve

[absoluteness99]

Kashkaris are historically known as a nation of honor, honesty, science, and principles. Kashkaris are also natural born businessmen as they historically governed the supply of silk for the whole world, Kashkar or Kashgar was the starting point of the ancient Silk Road which spanned all the way to Africa and linked Asia to the rest of the world.

[rhawk301]

It looks like we may have a troll from the Treasury here. Its so nice to have you pay a visit to us. Neil and the gang at treasury are a bunch of crooks and need to be thrown in jail.

They are now stealing over 9 Trillion dollars off the original $700 billion via fractional reserve banking. Thats not trading, its theft.

[absoluteness99]

Dude you have a SERIOUS MATH ERROR that you need to review:

A billion is defined as a cardinal number represented in the U.S. by 1 followed by 9 zeros.

A trillion is a cardinal number represented in the U.S. by 1 followed by 12 zeros.

Check any U.S. dictionary for that!

HOW CAN YOU STEAL A TRILLION FROM A BILLION??%#$%!

I GUESS IT'S LIKE STEALING A $1000 FROM A $100 ??!@#$

So please get your numbers right before accusing anyone of stealing...?!!!

Read my other comments. :)

[rhawk301]

This is how fractional reserve banking works.

$750000000000 is the original Amount created from fiat with no physical holdings.

$675000000000 is the amount that can be used for loans, written as assets.

Further expansion, based on 10% reserves through the lifecycle of the money creates a total of $6,749,999,999,990.49 or roughly $6.75 Trillion.

[rhawk301]

and what I didn't say is that our current monetary system is not using a strict 10% reserve rule, which is why you can have more created than before.

[FreedomFightersUnion]

Obama is already more of a tyrant than bush was; if you disagree, then you have some homework to do. Just look at every move he's made, every flip-flop, and every single person he brought in his cabinet. All ex-federal reserve board directors, ex-fannie mae and freddie mak CEO's. just look at Brzinzski for starters, he created he council on foreign relations and helped form the Tri-lateral commission. what are you going to say next, that these institutions are conspiracy theories?

[absoluteness99]

I think that all the parties involved in this circus should have their bank accounts audited, and should be questioned on every dime they made during that time.

[macroman52]

@needparalegal Wow! So you must know about argument from authority too.

[needparalegal]

@macroman52 Sorry Youtube does not provide enough space for me to teach you about how insurance can be used to bet on financial instruments and how that insurance can be leveraged endlessly to create new financial instruments based on that bet, nor about fractional reserve money creation. As an attorney I am qualified to teach... at an hourly rate. My billing rate at Perkins Coie was $400 an hour, but I will give you a substantial discount for a lesson in financial instruments.

[macroman52]

@needparalegal That doesn't actually answer my question, so I still don't know what you think TARP did and why it was bad. I might agree with you if I udnerstood what you are trying to say.

[needparalegal]

@macroman52 You sound like a smart guy, so you either a paid troll or extremely self deluded.

[macroman52]

@needparalegal Who sold the assets, the rich or Main St? I am confused. How exactly did the rich gain by TARP (i.e. the taxpayers, the government, the treasury) buying assets at cheap prices. The taxpayers got cheap assets you say (sounds good for the taxpayer) so who sold these assets and how did those sales help the rich?

[needparalegal]

@macroman52 Except that all that TARP money was used to buy distressed assets at bargain prices, not to lend to Main Street. Basically a huge giveaway to the rich.

[needparalegal]

His talking points are a steaming pile of bullshit to cover the theft of trillions.

[se7ensnakes]

@FreedomFightersUnion Obama is a sock puppet for the NWO. Notice that attacking libya, the health care reform, etc does not come from him, some group is telling him what to do. Is that not obvious? He is just a mouth piece. as far as fractional reserve banking it is pure evil because money creation, or a system that increases the money supply from M1 to M3 behind close doors, is terrible because they can bring the economy down and invest accordingly. The whole frac res is there to fleece

[se7ensnakes]

@rhawk301

thats not correct. The 10% reserve requirement is for check book accounts only. The rest, the bulk of the money loaned, is actually money deposited in money markets and CDs which have no reserve requirements.