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Title: OUTRAGE OF THE DAY: Do You Realize That The Government Is Still Paying Banks Not To Lend...?
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Published: Aug 17, 2011
Author: http://www.businessinsider.com/governmen
Post Date: 2011-08-17 14:40:27 by tom007
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Views: 66
Comments: 3
OUTRAGE OF THE DAY: Do You Realize That The Government Is Still Paying Banks Not To Lend...? Henry Blodget | Aug. 17, 2011, 12:10 PM | 5,015 | 69 A A A inShare10 bernanke God's gift to banks. See Also: Rick Perry Has A Gun! Rick Perry Defends Threatening Ben Bernanke POP QUIZ: Which Popular Commenter Said Bernanke Is Lucky He Hasn't Been Hanged? POP QUIZ: Which Popular Commenter Said Bernanke Is Lucky He Hasn't Been Hanged? Rick Perry Texas Rick Perry: The Federal Government "Has Been Manipulating The Markets Too Much" One of the most outrageous "open secrets" of U.S. government policy these days is that the Federal Reserve is still paying big banks not to lend money. And it's doing that while screwing average Americans who have been responsible and lived within their means. Huh? Seriously: The Federal Reserve is quietly continuing with one of the many outrageous bank-bailout programs it initiated during the financial crisis--the one in which it pays big banks interest on their "excess reserves." What are "excess reserves"? Money that the banks have but aren't lending out--money that banks are just keeping on deposit at the Fed. The Fed is paying banks 0.25% interest on this money. 0.25% interest may not sound like much, but it's more than the banks are paying you to keep money in your savings or money-market account. It's also more than you'll earn if you lend the Federal government money for 2 years. Oh, by the way, why, exactly, are you earning so little interest in your savings accounts and money-market funds? Well, because, thanks to another one of its bank-bailout programs, the Fed is keeping short-term interest rates at zero. In other words, the Fed is paying banks not to lend money and screwing you, American citizens, because you're dumb enough to have saved money. This is just so bass-ackwards it's not to be believed. Why on earth is the Fed paying banks not to lend? Well, back in the financial crisis, the Fed wanted to find ways to secretly bail out the banks without it being screamingly obvious to every American that that was what it was doing. And this particular bailout program was one of the more successful ways it discovered of doing that. Over the past few years, this program has secretly funneled about $10 billion in risk-free cash (rough estimate) directly to the banks, just for being banks and not lending. Don't you wish you could get in on that game? How much money are banks keeping in "excess reserves" that they might be encouraged to lend if the Fed weren't paying them not to? Excess Reserves Money for nothing. Image: St. Louis Fed. Oh, only $1.6 trillion. (See chart) The Fed pays banks about $4 billion of interest a year on that money--the money the banks aren't lending. And bankers get big bonuses based on that interest, for being so smart as to not lend money and instead just take the free interest from the Fed. Meanwhile, you earn next to nothing (or nothing) on the money you've saved. We don't think GOP presidential candidate Rick Perry should have threatened to kill Ben Bernanke the other day, but we can certainly understand his frustration. God, it's great to be a banker. Boy, does it suck to be an average responsible American. SEE ALSO: How To Make The World's Easiest $1 Billion Dollars Please follow Business Insider on Twitter and Facebook. Follow Henry Blodget on Twitter. Ask Henry A Question > Read more: www.businessinsider.com/g...lend-2011-8#ixzz1VJRKtcQm
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#1. To: tom007 (#0)
Meanwhile, Ag is over 40 and Au's trying to break 1800. Hellooo?
Break the Conventions - Keep the Commandments - G.K.Chesterson My bank will not give me a line of credit unless I make $1,000 a month or more. I will when I get back to driving a truck.
"When bad men combine, the good must associate; else they will fall, one by one." Edmund Burke
It's their usual M.O. for robbing the people. BILLION$ FOR THE BANKERS, DEBTS FOR THE PEOPLE "...Adequate Money Supply Needed An adequate supply of money is indispensable to civilized society. We could forego many other things, but without money industry would grind to a halt, farms would become only self-sustaining units, surplus food would disappear, jobs requiring the work of more than one man or one family would remain undone, shipping and large movements of goods would cease, hungry people would plunder and kill to remain alive, and all government except family or tribe would cease to function. An overstatement, you say? Not at all. Money is the blood of civilized society, the means of all commercial trade except simple barter. It is the measure and the instrument by which one product is sold and another purchased. Remove money or even reduce the supply below that which is necessary to carry on current levels of trade, and the results are catastrophic. For an example, we need only look at America's Depression of the early 1930's. The Bankers Depression of the 1930's In 1930 America did not lack industrial capacity, fertile farmland, skilled and willing workers or industrious farm families. It had an extensive and highly efficient transportation system in railroads, road networks, and inland and ocean waterways. Communications between regions and localities were the best in the world, utilizing telephone, teletype, radio, and a well-operated government mail system. No war had ravaged the cities or the countryside, no pestilence weakened the population, nor had famine stalked the land. The United States of America in 1930 lacked only one thing: an adequate supply of money to carry on trade and commerce. In the early 1930's, Bankers, the only source of new money and credit, deliberately refused loans to industries, stores and farms. Payments on existing loans were required however, and money rapidly disappeared from circulation. Goods were available to be purchased, jobs waiting to be done, but the lack of money brought the nation to a standstill. By this simple ploy America was put in a "depression" and the greedy Bankers took possession of hundreds of thousands of farms, homes, and business properties. The people were told, "times are hard," and "money is short." Not understanding the system, they were cruelly robbed of their earnings, their savings, and their property. Money for Peace? No! Money for War? Yes! World War II ended the "depression." The same Bankers who in the early 30's had no loans for peacetime houses, food and clothing, suddenly had unlimited billions to lend for Army barracks, K-rations and uniforms! A nation that in 1934 couldn't produce food for sale, suddenly could produce bombs to send free to Germany and Japan! (More on this riddle later.) With the sudden increase in money, people were hired, farms sold their produce, factories went to two shifts, mines re-opened, and "The Great Depression" was over! Some politicians were blamed for it and others took credit for ending it. The truth is the lack of money (caused by the Bankers) brought on the depression, and adequate money ended it. The people were never told that simple truth and in this article we will endeavor to show how these same Bankers who control our money and credit have used their control to plunder America and place us in bondage. ....." http://www.maxexchange.com/ybj/billions_for_the__bankers.htm Federal Reserve On Trial - You Be the Judge and Jury
"...as long as there..remain active enemies of the Christian church, we may hope to become Master of the World...the future Jewish King will never reign in the world before Christianity is overthrown - B'nai B'rith speech http://www.biblebelievers.org.au/luther.htm / http://bible.cc/psalms/83-4.htm
#2. To: tom007 (#0)
#3. To: tom007 (#0)
Why on earth is the Fed paying banks not to lend?
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