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Old 2008-09-19, 18:41   Link #33
Kuu-chan is hungry
Join Date: Apr 2007
Location: Raleigh, NC
Originally Posted by mg1942 View Post
As I understand the US Federal Reserve is not really government, it has representatives of the US Government on it's board, but the money under it's control is capital contributed by private banks. So this whole "the US government is bailing the banks out with taxpayer money" we're getting at this end of the world isn't right.

Anyone feel free to correct me if I'm wrong.
The Treasury Dept. is borrowing money from the Reserve to bail out the companies. That money has to be repaid sooner or later. That means taxpayers will have to pay the bill.
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