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FDIC to Borrow from Banks
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FDIC to Borrow from Banks

ManiacJack
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Posted 09/24/09 - 09:54 AM: Subject: FDIC to Borrow from Banks	#1
http://www.google.com/hostednews/a...DKhdFzS8wCQLktU_QD9ASEB5G1 That is right, folks, after giving banks trillions of dollars, the US Government is going to borrow back some of that money in order that it might further prop up banks-- or, at least, that is the plan. And it isn't April 1st. That new movie, The Age of Stupid, should be on Economics, not Global Warming.
Space Oil Peaked. Will Smuggle Priceless Astral Goods for Ultimate Price.

Hamandcheese
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Posted 09/24/09 - 11:31 AM:	#2
Federal Desposit Insurance is an extremely important function of the state, so, despite the irony, the money has to come from somewhere.
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Benkei
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Posted 09/24/09 - 09:56 PM:	#3
Old news of course. I've been reading a couple of articles on the whole issue of government spending in recessions and here's one that is relatively clear about the current crisis. http://counterpunch.org/whitney09152009.html What I find interesting in itself is that when consumers decide it is too risky to spend and start saving, for whatever reasons, whether rational or not, the government steps in and fucking spends money for you. Either in future taxes on you and your kids, inflation or a tax raise. Keynes' "liquidity trap" is bullshit. He just assumes that people hold money to have money and then you will get a vicious cycle because when I don't spend another guy has no income and therefore cannot spend. It misses the point that I will still need to eat, use electricity etc. I might rationalise my expenditures a bit but by and large companies and consumers will still buy products to meet their needs. The reduction of scale in the financial sector is simply prove that it was all hot air. It was doomed to collapse because there were no real products produced. And you need real wealth to sustain the value of money. Pumping more money in the system to keep a part of the economy afloat that's supposed to die a horrible death is one sure way to get double-digit inflation. We're all getting royally shafted by our governments. The more interesting question is "what can we, the people, really do about it?"
Obama is humping the pump in an effort to re-inflate an economy that looks more like a balloon with a 55 caliber bullet hole in it. - Joe Bageant

123savethewhales
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Posted 09/25/09 - 12:41 AM:	#4
In another word, the government is taking money from tax payers and people with savings, and redistribute them to their selected group (in this case large banks). I always thought Obama would be "pro business" after all that campaigning money he spend. Nothing much voters could have done about it in the short them, since I doubt McCain would have done anything different.
Keep it simple.

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