Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Imagine somebody hands you somebody free money and tells you if you just keep it they will pay you interest on it to boot. Just a matter of time until the house of cards collapses...............
"Did you know that U.S. banks have more than 1.8 trillion dollars parked at the Federal Reserve and that the Fed is actually paying them not to lend that money to us? We were always told that the goal of quantitative easing was to "help the economy", but the truth is that the vast majority of the money that the Fed has created through quantitative easing has not even gotten into the system. Instead, most of it is sitting at the Fed slowly earning interest for the bankers.
Back in October 2008, just as the last financial crisis was starting, Federal Reserve Chairman Ben Bernanke announced that the Federal Reserve would start paying interest on the reserves that banks keep at the Fed. This caused an absolute explosion in the size of these reserves. Back in 2008, U.S. banks had less than 2 billion dollars of excess reserves parked at the Fed. Today, they have more than 1.8 trillion. In less than five years, the pile of excess reserves has gotten nearly 1,000 times larger. This is utter insanity, and it will have very serious consequences down the road."
Imagine somebody hands you somebody free money and tells you if you just keep it they will pay you interest on it to boot. Just a matter of time until the house of cards collapses...............
"Did you know that U.S. banks have more than 1.8 trillion dollars parked at the Federal Reserve and that the Fed is actually paying them not to lend that money to us? We were always told that the goal of quantitative easing was to "help the economy", but the truth is that the vast majority of the money that the Fed has created through quantitative easing has not even gotten into the system. Instead, most of it is sitting at the Fed slowly earning interest for the bankers.
Back in October 2008, just as the last financial crisis was starting, Federal Reserve Chairman Ben Bernanke announced that the Federal Reserve would start paying interest on the reserves that banks keep at the Fed. This caused an absolute explosion in the size of these reserves. Back in 2008, U.S. banks had less than 2 billion dollars of excess reserves parked at the Fed. Today, they have more than 1.8 trillion. In less than five years, the pile of excess reserves has gotten nearly 1,000 times larger. This is utter insanity, and it will have very serious consequences down the road."
Do you want the banks to begin excessively lending again? I'm not stating that I support this nor have I even read the link, but if this true are you stating that we should go back to excessive lending and passing out credit-cards to anyone whom applies? I would love banks to begin lending in order for more small business to expand but the simple fact is they are refusing to while their profits are soaring to record levels. We need for their wealth to trickle down and we need to break these banks down. The scary thing is they'd probably move to the UK if we even threatens to break them down while continuing to operate in the US and I will say just this, you do not want a bank such as Bank of America to be HQ'd in The City of London where it can run completely free.
"The Bernanke Fed is now facing a $1.863 trillion time bomb, they helped to create, of excess reserves in the private banking system. If rates of interest on income earning assets (including bank loans to consumers and businesses) rise, the Fed will have to pay the banks more interest to hold their excess reserves."
My Wells Fargo advisor told me a few days ago they are expecting interest rates to rise . We will have to wait and see. I know the whole mortgage meltdown damaged all the banks and the government had to buy up all the toxic assets which gave the banks lots of money to cover their losses in the foreclosure area.
The banks are giving no interest which steals money from all who have money parked in the banks. They are earning no interest and many are retired and don't want the risk of the stock market.
It is robbing Peter to pay Paul.
The big banks are sitting on the money earning interest right now and are telling joe blow to stuff it and giving no interest on their savings in their banks. Basically telling folks to not save money. Saving money is not something these clowns want apparently. Go buy a new home, new car (cash for clunkers) spend spend spend. No incentive to save. You can of course go play the big crap table at wall street where the house always wins though. The banks are saving and earning though and laughing about it all.
The problem NEVER was allowing the banks to lend to people whom they should not have. The problem was, that banks were allowed to merge, buyout, merge, buyout to the point that there is now a monopoly and thereby bring down the whole economy. More regulation is not going to fix this problem, it will only make it worse. The government has near always regulated the buyouts and mergers of companies (ABC tv was once a arm of NBC until the government said it was too large).
Don't you see? When these banks became so large, they knew they could gamble because they understood they would get a bailout. They became so large, they knew the government would have to bail them out. There were other smaller banks that were not taking big gambles, did not get bailed out and still failed, while those whom made bad decisions were because they were allowed to grow so big.
BTW The situation is now much worse. It is even more concentrated with banks like Wachovia gone (bought up by Wells Fargo) and Washington Mutual to JPMorgan Chase to name a few. So once again, regulate buyouts and mergers (which is something that always was), allow those who make bad decisions to fail.
That and the "bad" loans were securitized and sold off over and over so when they failed everybody went down. Oh and the taxpayers insured it all. lol Our wonderful politicians at it again.
But that is not the jist of this one. Read the link and see that the fed has pinned itself in a corner. The markets are being coerced but they will have to take over eventually. When they do it's not gonna be good.
Oh well we will all be awaiting your judgement. LOL
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
