Our economy is in the “INTENSIVE CARE UNIT”. Are we waiting for HEAVENLY VOICES to wake us up and pay attention; or do the presidential hopefuls have the solution?
If you address the situation to any of the presidential candidates you will notice that without thinking, they begin to rant and rave solutions. Bottom line you cannot answer this question in the wink of an eye.
Recently the Federal Reserve proudly announced that twenty billion will be made available to the banks, in the form of a LOAN AUCTION. This loan was offered at a 4.65% interest rate, above the rate for interbank lending. This offer is below the interest rate the Federal Reserve charges for other direct loans.
The intention of this special auction is to keep money flowing. This approach might not seem out of place to the ECONOMISTS, due to the reason that the Federal Reserve regularly lends money to banks through the discount window.
Let’s not lose focus that the stated twenty billion dollar INJECTION into the economy by the Fed is only the first of the series required to cure the sickness known as the SUB PRIME MORTGAGE MELTDOWN.
What is troubling is that banks are not eager to jump at this remedy, could this be an indication that they are in FINANCIAL distress? Why are banks reluctant to lend to each other? Are they trying to evaluate the ones whose portfolio is loaded with bad debt applicable to the sub prime mortgage meltdown, which has caused the rise in interest rates and in some instances frozen borrowing?
I hope the savvy people on the hill are seeking remedy and note that this sickness requires special attention. Be aware the next wave of sickness headed for the intensive care unit is going to be the “CREDIT CARDS DISASTER”.
The Federal Reserve making money available to the banks is not the solution. This is encouraging the banks not to amend their reckless ways of handling the public and investors monies in a responsible manner. The banks should absorb these losses and the blood bonuses given to the CEO and their personal wealth should be confiscated to repay some of the losses. This will put this get rich quick no matter how to rest.
Now, the federal government bank regulator heads should also be rolling, why are we the tax payers paying them a salary for these results? We need to employ competent and savvy personnel to overlook this GREAT NATION interest. It is time to stop the bail out practice, no matter how we try to disguise it by calling it auction or whatever.
I wonder where all the money is going. Is there a hidden sanctuary some where? COME ON FEDS WAKE UP.
If you address the situation to any of the presidential candidates you will notice that without thinking, they begin to rant and rave solutions. Bottom line you cannot answer this question in the wink of an eye.
Recently the Federal Reserve proudly announced that twenty billion will be made available to the banks, in the form of a LOAN AUCTION. This loan was offered at a 4.65% interest rate, above the rate for interbank lending. This offer is below the interest rate the Federal Reserve charges for other direct loans.
The intention of this special auction is to keep money flowing. This approach might not seem out of place to the ECONOMISTS, due to the reason that the Federal Reserve regularly lends money to banks through the discount window.
Let’s not lose focus that the stated twenty billion dollar INJECTION into the economy by the Fed is only the first of the series required to cure the sickness known as the SUB PRIME MORTGAGE MELTDOWN.
What is troubling is that banks are not eager to jump at this remedy, could this be an indication that they are in FINANCIAL distress? Why are banks reluctant to lend to each other? Are they trying to evaluate the ones whose portfolio is loaded with bad debt applicable to the sub prime mortgage meltdown, which has caused the rise in interest rates and in some instances frozen borrowing?
I hope the savvy people on the hill are seeking remedy and note that this sickness requires special attention. Be aware the next wave of sickness headed for the intensive care unit is going to be the “CREDIT CARDS DISASTER”.
The Federal Reserve making money available to the banks is not the solution. This is encouraging the banks not to amend their reckless ways of handling the public and investors monies in a responsible manner. The banks should absorb these losses and the blood bonuses given to the CEO and their personal wealth should be confiscated to repay some of the losses. This will put this get rich quick no matter how to rest.
Now, the federal government bank regulator heads should also be rolling, why are we the tax payers paying them a salary for these results? We need to employ competent and savvy personnel to overlook this GREAT NATION interest. It is time to stop the bail out practice, no matter how we try to disguise it by calling it auction or whatever.
I wonder where all the money is going. Is there a hidden sanctuary some where? COME ON FEDS WAKE UP.
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