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The US Federal Reserve current policy of buying debt, offering cheap loans (to banks and brokerage firms) and generally pushing amounts of cash into the banking system - has ensured short periods of calm , then panic sets in again. When a financial system freezes up, or is loosing money (on depreciating assets) and at the same time systemically unwinding (credit markets) in a dramatic way - this is worrying.
Originally posted by stphdys
This was predicted in March of 2008. In no way should we bail out the very institutions that would have mortgage holders go bankrupt, but have the nerve to ask to bail them out.
morb.wordpress.com
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Originally posted by ATruGod
How about the government dole that cash out to the banks in the names of thier debtors, that way you kill 2 birds with one stone:
The little man gets his debt paid and the Banks get the cash they need, and since the little man has to foot the bill anyways it makes sense.