2016 Postmortem
Related: About this forumWashington Post gives Bernie Sanders three more Pinocchios
Ahead of the June 5 primary in Puerto Rico, Sanders is pushing his plan to relieve the island territory of its crippling debt. With House legislation in limbo, Sanders is calling on the Federal Reserve to take action similar to what it did for the big banks during the 2008 financial crisis. Sanders says he plans to propose legislation in the Senate after the election, to help Puerto Rico.
During his speech, Sanders pointed to the section of the Federal Reserve Act that allows the Fed to extend credit to entities other than banks, to support his argument. Is that really feasible?
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The Pinocchio Test
Sanders calls on the Fed to use its emergency lending authority to help Puerto Rico, just as it had used the same authority to rescue failing firms during the financial crisis. But this is quite misleading. The Fed has now adopted limits to its lending authority after the financial crisis, consistent with requirements under Dodd-Frank. Interestingly, Sanders who supported such restrictions under Dodd-Frank now wants the Fed to get creative in interpreting its authority to help Puerto Rico.
In his speeches, proposal and his pending legislation, Sanders creates a misleading impression that the Fed has the same authority it had back then, and therefore can rescue Puerto Rico. Thats not the case.
Three Pinocchios
https://www.washingtonpost.com/news/fact-checker/wp/2016/06/03/bernie-sanderss-claim-that-the-fed-can-rescue-puerto-rico-like-it-rescued-wall-street/
yallerdawg
(16,104 posts)The worm has definitely turned.
AgingAmerican
(12,958 posts)Cali_Democrat
(30,439 posts)as they used in 2008 during the financial crisis?
Or have limits now been adopted after Dodd-Frank became law?
It's a simple question.
Sheepshank
(12,504 posts)even if he were responsible for the reality in the first place.
Presenting himself as the only one that can mobalize noble causes are sound more and more like red herrings.
nichomachus
(12,754 posts)They just love corporatism and warmongering. No wonder Hillary is their gal.
Someone should tote up all the anti-Bernie stories they've manufactured. It would be staggering.
Cali_Democrat
(30,439 posts)Or have limits been put into place after the passage of Dodd-Frank?
And did Bernie vote for Dodd-Frank?
Simple question.
Cooley Hurd
(26,877 posts)...so spread your knowledge. And don't ask me to google it. Answer yer own question.
Cali_Democrat
(30,439 posts)Cooley Hurd
(26,877 posts)Facts (shared or not by those who claim to have them) have a LIBERAL bias, as Stephen told us 10 years ago at the WHCD. So, why do Secretary Clinton supporters dodge them or flat-out deny them at every turn?
OilemFirchen
(7,143 posts)In a nutshell, the Fed can't loan to insolvent entities nor can they buy bonds from a U.S. territory.
There. Saved you the time and any subsequent snark.
Cooley Hurd
(26,877 posts)"Entity" needs to be defined here.
OilemFirchen
(7,143 posts)msongs
(67,462 posts)Logical
(22,457 posts)jfern
(5,204 posts)They have been attacking him hard for months. And yet he's still way more popular than Hillary.
Cali_Democrat
(30,439 posts)...and hundreds more pledged delegates?
anotherproletariat
(1,446 posts)Number23
(24,544 posts)about how "dishonest" Clinton is.