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5 trillion in student debt
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<blockquote data-quote="Box Ox" data-source="post: 5882199" data-attributes="member: 48469"><p>Yes. </p><p></p><p>From your article:</p><p></p><p>"Recently, a pair of PhD students at the University of Missouri-Kansas City tried to assess the total size of the <a href="http://www.levyinstitute.org/publications/?docid=1462" target="_blank">Fed’s commitments</a>—not just loans made, but asset purchases as well. The bottom line: a Federal Reserve bailout commitment in excess of $29 trillion.</p><p></p><p>That figure has, in turn, been criticized by economist James Hamilton who argued, incredibly, that the Fed’s bailout commitment under one facility was zero because all the money was paid back."</p><p></p><hr /><p></p><p>“Felkerson [one of the UM-KC students] takes the gross new lending under the Term Auction Facility each week from 2007 to 2010 and adds these numbers together to arrive at a cumulative total that comes to $3.8 trillion. To make the number sound big, of course you want to count only the money going out and pay no attention to the rate at which it is coming back in. If instead you were to take the net new lending under the TAF each week over this period-- that is, subtract each week's loan repayment from that week's new loan issue-- and add those net loan amounts together across all weeks, you would arrive at a cumulative total that equals exactly zero. The number is zero because every loan was repaid, and there are no loans currently outstanding under this program. But zero isn't quite as fun a number with which to try to rouse the rabble.”</p></blockquote><p></p>
[QUOTE="Box Ox, post: 5882199, member: 48469"] Yes. From your article: "Recently, a pair of PhD students at the University of Missouri-Kansas City tried to assess the total size of the [URL='http://www.levyinstitute.org/publications/?docid=1462']Fed’s commitments[/URL]—not just loans made, but asset purchases as well. The bottom line: a Federal Reserve bailout commitment in excess of $29 trillion. That figure has, in turn, been criticized by economist James Hamilton who argued, incredibly, that the Fed’s bailout commitment under one facility was zero because all the money was paid back." [HR][/HR] “Felkerson [one of the UM-KC students] takes the gross new lending under the Term Auction Facility each week from 2007 to 2010 and adds these numbers together to arrive at a cumulative total that comes to $3.8 trillion. To make the number sound big, of course you want to count only the money going out and pay no attention to the rate at which it is coming back in. If instead you were to take the net new lending under the TAF each week over this period-- that is, subtract each week's loan repayment from that week's new loan issue-- and add those net loan amounts together across all weeks, you would arrive at a cumulative total that equals exactly zero. The number is zero because every loan was repaid, and there are no loans currently outstanding under this program. But zero isn't quite as fun a number with which to try to rouse the rabble.” [/QUOTE]
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