NEW YORK — Pam and Russ Martens have been detailing the massive bank bailouts under the repo market that took place in 2019 in a series of articles for Wall Street on Parade over the last week-plus.
The corruption and deceit are clearly there, but outside of the Martens’ the media has ignored the recent data the New York Federal Reserve was legally required to produce. More importantly, the information provides some insight on how weak the economy’s fundamentals have been for a long time.
In 2008, the period known as the Great Recession began when the Fed doled out $3.144 trillion in repo loans to big criminal banks to bail them out. Between Sept. 17 of 2019 and July 2 of 2020, the repo loans totaled a whopping $11.23 trillion, over 3.5-times as large as 2008’s loans.
The Martens’ write: “The Fed’s emergency repo operations began as overnight loans. But then the Fed began regularly offering 14-day term loans in addition to the overnight loans. Then it began to add even longer term loans.”
Only banks known as “primary dealers” on Wall Street can get these Fed loans, and they total only 24 trading houses. And the same bad actors in 2008 are the same today including J.P. Morgan Securities, Bank of America Securities, Cantor Fitzgerald, Citigroup Global Markets, Deutsche Bank, Goldman Sachs and Nomura Securities International. Those were the largest borrowers.