Bailout Blanks

This analysis explains how much money the Fed has pumped directly into the banks and the credit institutional system.

While the author concentrates on all the magical efforts being tried to get money into the system, he only briefly mentions that the banks are hoarding the money.

Please! Where is the impetus to tie the Fed money lending to the banks and credit institutions lending money? How difficult is this for the Fed and for Congress and the White House. If you want them to lend money then mandate the lending of this money or refuse to give it. It is not as if these banks and insurers outright “deserve” to get money. It is certainly not as if giving them money has no consequences. We taxpayers are loaning them this money and that costs both in potential loses and in not being able to spend this money for other purposes. It also costs in creating a potential inflation crisis.

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2 comments so far

  1. […] Where is the impetus to tie the Fed money lending to the banks and credit institutions lending money? How difficult is this for the Fed and for Congress and the White House. If you want them to lend money then mandate the lending of …[Continue Reading] […]

  2. Mari on

    This bailout is a whole big stinking pile of doo. I won’t be surprised when the auto loan bailout will also stink.
    Banks aren’t doing with the money what we wanted. Well when you just throw gobs of money at something without real accountablity, what do you expect? Open books does not accountability make. Something that has a punitive component, I dunno like jail time for execs, may make banks, auto companies, accountable. But too late now with the banks.


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