themcglynn.com

15 Jan

Unknown Where Abouts of Your Money

Where’s the bailout money going? If the federal government told you, then banks might stop taking it.

That’s the argument made by Federal Reserve Vice Chairman Donald Kohn in this overlooked clip from Tuesday’s House Financial Services Committee hearing on the bailout funds.

In response to pointed questioning from Rep. Alan Grayson (D-Fla.), Kohn laid out the reasoning.

“I’d be very concerned, Congressman, that if we published the individual names of who was borrowing from us, no one would borrow from us,” he said. “The purpose of our borrowing is not to support individual institutions but to support the credit market.”

Grayson couldn’t believe it. “Has that ever happened? Have people ever said we won’t take your $150 billion because people might find out about it?” he asked.

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