Another Bank Bailout Under Cover of a Virus

I adore this woman and think she would be an excellent VP for Biden. But the problem might be that she is smarter then Joe - doesn't take a whole lot.

This article covers a lot of ground, explaining many buzzwords and difficult 'finance' topics. I'll share a couple of paragraphs that suit my mood but won't do the content justice.

“The justification of private profit,” said President Franklin Roosevelt in a 1938 address, “is private risk.”

Banking has now been made virtually risk-free, backed by the full faith and credit of the United States and its people.

The American people are therefore entitled to share in the benefits and the profits. Banking needs to be made a public utility.

But President Franklin D. Roosevelt, who took office in 1933, was skeptical about insuring bank deposits.

He warned, “We do not wish to make the United States Government liable for the mistakes and errors of individual banks, and put a premium on unsound banking in the future.”

The government had a viable public alternative, a US postal banking system established in 1911. Postal banks became especially popular during the Depression, because they were backed by the US government.

But Roosevelt was pressured into signing the 1933 Banking Act, creating the Federal Deposit Insurance Corporation that insured private banks with public funds.

In March 2020, under cover of a national crisis, the Fed therefore flung the doors open to its discount window, where only banks could borrow.

Previously, banks were reluctant to apply there because the interest was at a penalty rate and carried a stigma, signaling that the bank must be in distress.

But that concern was eliminated when the Fed announced in a March 15 press release that the interest rate had been dropped to 0.25% (virtually zero).

The reserve requirement was also eliminated, the capital requirement was relaxed, and all banks in good standing were offered loans of up to 90 days, “renewable on a daily basis.”

www.commondreams.org...

ellenbrown.com...

Ms. Brown's work is never easy but she explains the subjects well with her precision; it is always worth the time it takes to read and learn from her.

Enjoy....

So, when everyone is using their credit or bank cards to purchase stuff, the businesses are all paying between three to five percent of most of the sales to the banks. Cash is being frowned on and Amazon is really paying a lot to the banks so the banks can pay their loan back. How quaint....but I suppose since the banks are making so much money they will give all their execs bonuses with the extra cash.

a reply to: FyreByrd

No chance she would ever be chosen for VP.
She way to far out there.

a reply to: FyreByrd

I can see why you like Ellen... just another Progressive that wants to nationalize another big industry (banking).

You know, since putting the Federal Reserve together and in charge has helped us so much in that area.

Much like trying to nationalize Health Care worked out so well...

Let's just make her President and get the reset going.

originally posted by: Bluntone22
No chance she would ever be chosen for VP.

Biden's VP will determine his electability.

Bank bailouts be damned!! -chuckle

originally posted by: Snarl

originally posted by: Bluntone22
No chance she would ever be chosen for VP.

Biden's VP will determine his electability.
Bank bailouts be damned!! -chuckle

If true; what a gigantic missed opportunity (as in) THAT person [originally] should have run for president.

originally posted by: Lumenari
a reply to: FyreByrd

I can see why you like Ellen... just another Progressive that wants to nationalize another big industry (banking).

You know, since putting the Federal Reserve together and in charge has helped us so much in that area.

Much like trying to nationalize Health Care worked out so well...

Let's just make her President and get the reset going.

Name calling, i.e. "just another progressive" is no argument at all. If you can't refute the arguments (having read them first) then you have noting to say.

I know it' popular to "name call" (Ad Hominem) but it's also useless.