I suggest a quick read of this:
http://en.wikipedia.org/wiki/Federal_Reserve_Bank
> I have a notion that mechanisms like the LTRO, QE etc... are
> basically publicly insured loans (insured through power of
> taxation) to banks to shore up their balance sheets via
> "old fashioned" banking (borrowing short, lending long).
... and do it quickly, before your notion spreads any further.
The Treasury and the Federal reserve bank are two completely different organizations with complimentary goals and charters. QE is in no way or theory a publically insured loan. The purchase of assets by the FRB does not in any way put the public on the hook: the member banks themselves are on the hook. There's more to it -- member banks are expected to eat any losses generated by the actions of the FRB, but profits must be sent to the Treasury, for instance -- but you've got a way to go before you're back to the line of scrimmage on this one. Try this one next:
http://en.wikipedia.org/wiki/Quantitative_easing
/jordan