Obama hits the pulpit and rails about the banks not lending money.
HOW DARE THEY just sit on that money they got with the bailouts?
Federal Reserve Chairman Ben Bernanke as well as Barack Obama need banks to make a fortune.
The Obama re-election depends on it.
We watch the Obama charade on how awful these bank CEO’S are and how corporate jets need to be taxed higher.
EVERYONE NEEDS TO EAT PEAS!
But actions speak louder than words.
Unfortunately for Bernanke and Obama “we the people” have awakened and are savvy to the con.
It is clear that the governmental powers that be never figured “their jig” would be up much less exposed. They were so used to doing CORRUPT BUSINESS as usual … like the stupidity of Anthony Weiner they figured they would never get caught.
So now with all of the trillions of dollars being dumped into the system things are not getting better.
Well unless you listen to the “cooked books rhetoric” out of this administration.
So the government desperately wants real estate to turn around. It desperately wants money to get in the hands of the people so they can take out mortgages on real estate. They think this will stabilize home prices and help get the economy going again.
So what must the government do to get money in the hands of the people?
Shame or force the banks to lend money to the people.
Yes those same people who are STILL JOBLESS and can not afford the loan?
Well after the real estate bust the banks are a little wary … GEE THATS A SHOCK ISN’T IT?
So Bernanke has cut the interest rates to zero. Now the banks can borrow for next to nothing and lend at a higher rate.
Take a look at your CC statement. If you run a balance how much interest are you having to pay? HOLY SMOKE BAT MAN!
Let me see they borrow from the government …
WE THE PEOPLE … then lend it back to us for what? … 10% to 20% or more?
I WANT TO BE A BANK!
The bank has my IRA and 401K and I get maybe 1% to 3% … as my investment is jockeyed by some billionaire twit in Dubai who jacks the price with his monopoly money and margin?
No wonder the banks could pay the loans back to the government.
Pretty smooth deal when you think about it.
Now the banks are giving the government the middle finger and sitting back riding the income wave.
Might be a well deserved middle finger since the progressive government give, give, give FOR FREE attitude got them in the shaky collapse spot in the beginning.
So here we are today.
At least the government and banking system are on the same “BANKS MAKE MONEY” bandwagon.
One could logically assume things being made so cushy for the banks their stocks would soar.
OH OH … NOT SO!
In-fact bank stocks are dirt-cheap.
WHY?
Do you suppose “we the people” are putting 2 and 2 together and are wondering why the banks are paying 5% to 7 % on their corporate bonds when they get all that free money from the government?
Looks like a solvency problem to me.
If I owe my CC company $1000 at 7% interest and I come into a windfall of $2000 interest free … I pay off the $1000 … take the other $1000 pay it on the new loan and work on paying off the free of interest $1000 … don’t you?
Give up the “normalcy bias” folks.
Time to be good boy/girl scouts.
According to recent calculations by the Peter G. Peterson Foundation (PGPF), the sum of America’s debts and other financial commitments is about to exceed the collective net worth of its citizens. That means that for the first time in our history, we’ll owe more money than all of us have combined.
What’s responsible for this unprecedented shift? Growth in the government’s unfunded promises for social insurance programs such as Medicare, combined with a drop in Americans’ net worth, due mainly to lower home equity values.
PGPF’s calculations are based on the new consolidated federal financial statements as of September 30, 2008, which notably, do not reflect the additional toll taken by more recent market declines, bailout packages, and record October and November deficits.
But there’s hope yet. Since its launch this year, the Foundation has invested nearly $11 million in grants to raise awareness of, and seek solutions to the nation’s fiscal challenges. As Americans say goodbye to 2008, and look towards the new year, PGPF will continue to work with its extraordinary grantee partners as they focus on a variety of timely initiatives to help put our nation back on a fiscally prudent and sustainable path.
This is a nonpartisan very informative film and I felt it was well worth the 30 minutes of time to watch it. If you are at all in doubt about how serious this economic crisis actually is this is a must see.
The film is produced by the Peter G. Peterson Foundation:
Founded by the senior chairman of The Blackstone Group with a personal commitment of at least $1 billion, the Foundation is dedicated to increasing public awareness of the nature and urgency of key fiscal challenges threatening America’s future, and to accelerating action on them. To address these challenges successfully, we work to bring Americans together to find sensible, long-term solutions that transcend age, party lines and ideological divides in order to achieve real results.