We Need a Revolution!
As we already know, because of the wild, reckless actions of the big banks selling derivatives that had little to no worth, the big banks were insolvent a year ago. The government argued that the banks MUST be saved so that lending to Main Street could continue, thereby saving the economy. As we also know, lending to Main Street has all but stopped (there's a chart in the article/video that demonstrates this very clearly). However, what was done is that the Fed bought hundreds of billions of dollars of bad assets from the bank - i.e. made their bad debt disappear! What's even worse, is that the banks can borrow money from the government at zero percent interest and then loan it back to the government, getting paid to do so. Talk about a ponzi scheme. This is really nothing more than a direct subsidy from the middle class to the Wall Street FatCats. I'll take that back, it's not a subsidy - it's the RAPE of the middle class. Now, here's the kicker, THE GOVERNEMENT'S PLAN TO UNWIND THE STIMULUS IS TO PAY THE BANKS HIGHER INTEREST FOR DOING ABSOLUTELY NOTHING! Not lending. Not re-financing loans. Nothing! Simply get free money from the government (middle class) and then get paid to loan it back to the government.
From the article:
The idea behind giving the banks cheap money was that the banks would lend it to consumers and businesses. Unfortunately, that hasn't happened: Since the start of the crisis, bank lending has fallen off a cliff. The banks are, however, lending to the Federal government, which needs to fund record deficits by borrowing more than $1 trillion a year. The combination of the Fed's desire to stimulate lending via cheap money and the government's desire to stimulate the economy by running a huge deficit has made it a great time to be a bank: Banks can borrow from the government at artificially cheap rates and then lend the money back to the Federal government at higher rates, pocketing the difference.
And now it's going to get even better to be a bank.
Why?
Because the first part of the Fed's exit plan will reportedly be to increase the amount of interest the Fed pays on "excess reserves."
Here's the article:
article
This is an OUTRAGE and another reason that we need a REVOLUTION in this country! This tyranny can NOT be allowed to stand.