We need a little background here. The US Federal Reserve has pledged to spend $12.2 trillion dollars to bail out the banks and financial institutions.
We have a mysterious set of circumstances taking place at the Fed. First off, our banks are now out of the woods, with some of them making billions in profits.
Here's the kicker. The Fed intends to buy another $600 billion of mortgage backed securities.
Jerry Caprio of Williams College thinks the Fed is missing the mark. I agree.
With seven million people out of work, the Fed absolutely must stop this craziness of a perpetual bank bail out and focus on the American people. The bankers are making billions and certainly can take care of the losses from mortgage backed securities. Let them use their hefty bonus money to plug the gap. How about spending the $600 billion by putting people back to work?
The bankers are safe now and don't give a hoot about helping out the average American Their primary mission is to make money.
Do you believe that the Fed should spend some of the $12.2 trillion to help the American people, especially the unemployed?
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Reader Comments (Page 1 of 1)
8-11-2009 @ 4:06PM
john said...
When the govornment owns all the property they will give it away for votes or to the ........
8-11-2009 @ 5:03PM
Robert Prince said...
The most direct way to aid the unemployed, the underemployed and their families, say 60 million people, would be use the $600 billion to directly subsidize them. $10 thousand each might be enough to live on for a year or so. Then the $600 billion would be gone. What we need are jobs. But where are they going to come from? Will China and India soon begin outsourcing jobs to the United States?
8-12-2009 @ 8:39AM
Teddy Douglas said...
A lot of those bank "profits" are accounting anomalies.
8-11-2009 @ 10:53PM
william lindblad said...
It all depends on what you happen to believe. On one front, everything is looking up, on another, the opposite. Like the "X-files" statement, the "truth is out there", but finding it today proves a little difficult. The Housing market is supposed to be reasonably stable in some reports and even showing some improvement in new home sales. On another front, the mortgage failure rate is still rising and more and more are falling behind on monthly payments. Worker productivity is up and layoffs are slowing. Unemployment was revised lower.
As I have said many times in the past. Statistics, statistics, they can be manipulated to show both good or bad.
Why is the Fed still interested in picking up toxic debt?
Perhaps they know that things are not to rosy. The great contradiction is that unemployment is expected to go to 10%+ by the same government that is trying to promote confidence. It's the very same one that is trying to play partisan politics and blame every town meeting complaint on the opposite party. I don't think that it is possible to believe that these "meetings" do not have many in the audience that are part of the 10% group and that is being kind. That 10% is more like double since the method of achieving the figure discounts too much!
8-21-2009 @ 10:23AM
jeff said...
"The bankers are safe now and don't give a hoot about helping out the average American Their primary mission is to make money."
of course there mission is to make money. they are bankers. its the governments job to to help out the average american, which will happen once the banks can get back on their feet and hire again.