Quote:
Originally Posted by Rocky_Shorz
Well that frees 10 times the money of each loan...
I can understand him doing it on the HELOCs, because until the housing market turns around, they are worth nothing. The HELOCs bad paper should be handed over to the Treasury for 5 cents on the dollar, to hold until the market turns around.
So would bailing out each bank be better than just freeing their credit?
for each Nickel these are sold for to the Treasury, the bank can loan 9 times as much, so they instantly recover 50% of what they just lost...
I think this is a pretty quick way to get the wheel turning again.
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Remember, the Fed has pumped 1.2 trillion into the banking system in the last few days. This legislation is not about the money, at least in terms of helping credit flow. If that were the case the Fed's latest injection would have done the trick. The treasury even admitted that they pulled the $700 billion figure out of thin air. It's about a fascist power grab, one purpose of which is to cover up criminal activity under the "cover of darkness", the other to further consolidate the unitary executive, install fascist economic controls, debase further the balance of the legislative branch, pay off the elite financial illuminists before the real crash of the derivitave and CDS markets (which will be unstoppable with cash injection, since they total over a quadrillion dollars), and as a byproduct the further destruction of the value of the dollar.
We can't get to caught up in the ineffectiveness of the legislation to deal with the credit crunch, because then we take our eye off the bigger picture - this is an unconstitutional fascist power grab!