The Federal Reserve now holds 4 trillion dollars worth of Treasury’s. Do you get the feeling that a lot of stuff that would have hit the fan, got bought by the Fed? All of Goldman Sach's bets with AIG were paid. Fannie and Freddie are GSA’s that should have dropped dead and didn't.
It is the Congress who spends our taxes but the Federal Reserve can spend the cash it creates with Treasury securities, without Congressional approval. They can buy bad debts and hope they get the money back later (It isn’t going to happen). The Fed is spending money at a faster rate than our Congress ever could. Of course it is not really spending; it is just a loan from the Treasury which they will buy back.
It is noble that Ben wants to save the financial system. He can spend the money on wine women and song or bad real estate loans, it makes no difference, the money is not coming back. He has borrowed money, he has no right to access. Hail Ben Bernanke, our King, Sovereign ruling over all, Congress be dammed.
This is one guy that will never be out money as long as he has a pen. And we thought we had to worry about Congress--forget them, they are asleep at the switch or more probably text messaging a girlfriend to renew their Viagra prescription.