Read Randy's initial response at Economonitor, Great Leap Forward
Bernanke’s Obfuscation On The 29 Trillion Dollar Bailout: Response To Critics
by L. Randall Wray
In it Randy points to publication of Felkerson's working paper at Levy
$29,000,000,000,000: A Detailed Look at the Fed’s Bailout by Funding Facility and Recipient
by James Felkerson
Randy also directs us to Barry Ritholtz's blog where BR gets Randy's point.
by Barry Ritholtz at The Big Picture
BR: One comment about some of the folks pushing back against this massive total: Yes, there is a big difference between a $100 lent for 3 days, and a $100 lent overnight rolled over 2 more times. And there is an enormous difference when temporary overnight lending lasts for three years.
Overnight lending, by its definition, is temporary, short term, lower risk, modest impact. It exists to allow slightly over-extended banks to meet their reserve requirements. But rolling overnight lending repeatedly for 3 years is none of those things. And it makes a mockery of these same reserve requirements, and the protective purposes they are supposed to serve.
The amount of overnight lending reflects how broken our financial system really is. A well capitalized, moderately leverage system does not require this massive liquidity from a central bank — interbank lending should be sufficient. What the data reveals is that the financial sector remains dangerously under-capitalized and overleveraged.To pretend these were merely minor overnight loans, rolled over once or twice, is foolish, dangerous nonsenseRandy elaborates further at New Economic Perpectives
Bernanke’s 29 Trillion Dollar Fog of Deceit
by L. Rabble Wray (sic)
Randy concludes at Economonitor
The $29 Trillion Bail-Out: A resolution and conclusion
by L Randall Wray
Lively comments on all these posts, too. This has really stirred up a hornet's nest of controversy, and Randy is clearly enjoying it.