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There is no sense to it. The banks gambled and lost and we had to bail them out. They are now hoarding the money the government gave them and using themselves. Maybe they are trading with it after all these are the "investment" banks that got the money. Speculation can yield big rewards you know.
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Thanks for a cordial response, HappyTexan. It's confusing because economists are all over the place on this one; that makes it difficult to know exactly what needs to be done and how it should be accomplished. When partisanship enters the mix, objectivity flies out the window...it's great to get a response that just answers a question honestly.
In essence, President Obama should be putting pressure on those banks to get the money out there...is this correct? I wonder if anything of that nature is going on behind the scenes. Let us hope that they aren't using the stimulus money in speculation; the failure of Enron is a stark reminder of how people can lose their investment money through poor decisions. And mentioning Enron is not meant to be taken in any way politically; most
Americans had no idea that their retirement money could be used as investment money, without their knowledge or approval. This entire fiasco is an excellent example of why basic economics should be a required course in high school, at the least. It would be far more beneficial than algebra or geometry, which are seldom used by the average student throughout life. And thanks for confirming my gut feeling that "There is no sense to it."
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Thanks for a cordial response, HappyTexan. It's confusing because economists are all over the place on this one; that makes it difficult to know exactly what needs to be done and how it should be accomplished. When partisanship enters the mix, objectivity flies out the window...it's great to get a response that just answers a question honestly.
In essence, President Obama should be putting pressure on those banks to get the money out there...is this correct? I wonder if anything of that nature is going on behind the scenes. Let us hope that they aren't using the stimulus money in speculation; the failure of Enron is a stark reminder of how people can lose their investment money through poor decisions. And mentioning Enron is not meant to be taken in any way politically; most
Americans had no idea that their retirement money could be used as investment money, without their knowledge or approval. This entire fiasco is an excellent example of why basic economics should be a required course in high school, at the least. It would be far more beneficial than algebra or geometry, which are seldom used by the average student throughout life. And thanks for confirming my gut feeling that "There is no sense to it."
That's what China did with their stimulus and the banks listened.
The Chinese banks have met 90% of the government's goals.
US banks didn't loan. They went just the opposite way..tightened up credit so the government stepped in and is trying to it themselves.
But, as is with governments, there is a billion miles of red tape that holds that money up and new oversight and disbursement committees that need to be formed.
But isn't that bigger government?
And isn't more government always bad?
Or should gov only expand in emergencies..?
You cant spend your way "OUT' of this mess....If thats the case then eveyone in the country should go out and max out C.C and what ever else they have..it makes no sense and it CANT work, but libs will just keep screaming spend spend thats all they know.
You cant spend your way "OUT' of this mess....If thats the case then eveyone in the country should go out and max out C.C and what ever else they have..it makes no sense and it CANT work, but libs will just keep screaming spend spend thats all they know.
+1
You are correct.
The real purpose of the bail out was not to spur "economic recovery" but to prevent the implosion of the banking system.
Just go to the Federal Reserve site and check on M1.
Then look at the Gross Domestic Product.
And then figure out how large the discrepancy is between what account holders are due and how many Federal Reserve notes (dollar bills) are in circulation. (In other words, if everyone tried to "cash out" at the same time, there's less than $0.10 on the dollar available.)
Pursuant to Title 12 United States Code 411, the only way new FRNs could be emitted is by Congress going deeper into debt. So to save the skins of the banksters (who really "own" the U.S. government), their Congress blindly handed over a trillion... which did avert a nationwide bank run, and thus expose their vulnerability.
What next?
As soon as the sheeple are calmed down, the shearing can resume.
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Do the math
