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They paid us back by borrowing our money from us at even more generous terms. How is that a good thing?
Please point out where major banks borrowed our money at generous terms. The major banks were forced to issue warrants to the government. Again, if you wish to force smaller banks out of business, just say so. But don't lump large banks with small banks, you are being dishonest.
Bent, I have heard that tired line too... I have also heard that that's just a stupid shell game that was played to give the illusion of being paid back.
"I have heard"
There is your entire problem and the reason you have absolutely no credibility in this discussion.
Shore, Wall Street borrowed money from the Treasury to "pay back" TARP. You see the problem with that? Let's get our money back for realsies, shall we?
Why is it always liberals who seem to have failed math class..
WestCobb.. Let me give you a math question
If the government borrows money at 3% and then forces banks to take that money at 5% interest, is this cost to the taxpayers, or an artificial "tax"?
ITS a PROFIT to the taxpayers and used to REDUCE the deficit. Why on gods earth would you want to reverse this transaction and thus create HIGHER deficit while at the same time taking hundreds of billion out of the economy that cant/wont be spent, thus destroying the very little economic activity that we have taking place?
Quote:
Originally Posted by WestCobb
They paid us back by borrowing our money from us at even more generous terms. How is that a good thing?
It was no where close to more generous terms. Warrants are issued normally at a 10% interest rate, and they were issued to pay off the 5% or so interest payment payable from TARP.
The neat part of all of this financial manipulation is eventually the system will be so strung out on debt that it will simply collapse and the world economy will have to start over. I believe this would best be dome deliberately ( as in writing of the Greek Debt) in an orderly manner but will most likely be done chaotically and be very nasty. IMHO the problem will start when China can no longer afford to pay us to buy their exports and they close factories as a result. Then the great Opps!.
banks borrowed as much as $855 billion over the time frame for a rate as low as 0.01%
the Top 5 borrowers were Credit Suisse, Deutsche Bank, BNP Paribas, RBS and Barclays. Together these five accounted for $593 billion of total borrowings, or 70% of the total.
just one example... the Fed exists to pump money into the private banking system. that's what it does.
not really. we need to focus on reforming the financial system, to prevent future debt bubbles, and to allow for orderly failure instead of TBTF.
How about this then, Cletus? The government should do a study and ask all banks to make their case for why they are TBTF (if they feel they are) and why they should get public loot in the next financial meltdown.
This is what should happen to those banks who feel they are entitled to our money: once they are determined to be TBTF (largely through self identification), the government should deterimine they are too big to exist and have become a threat to our national security. They should then be broken up with the use of existing and new anti-trust laws. No more holding the public hostage to private, individual profits.
How about this then, Cletus? The government should do a study and ask all banks to make their case for why they are TBTF (if they feel they are) and why they should get public loot in the next financial meltdown.
well, they did, sort of. it is the FCIC.
the response from banks and deregulators was to wage a propaganda campaign to try and convince the average American that they were "forced" to make these loans.
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