instead of a bailout how about

Instead of the government buying 700billion dollars of bad debt why don't they instead lend out 700billion dollars to the banks at 5% interest.

Thats a brilliant idea actually.
But sadly the Banks Run the Government, so it most likely wont happen.

How about we try this again:
Silver Certificate


[edit on 29-9-2008 by hoppy]

Originally posted by not so crazy cannuck
Instead of the government buying 700billion dollars of bad debt why don't they instead lend out 700billion dollars to the banks at 5% interest.

Because not matter who ends up receiving the $700B, the Feds have to either borrow it from other countries or print it with no gold backing. Neither option helps us in the end.

[edit on 29-9-2008 by asmeone2]

reply to post by asmeone2


yes but by lending the banks the money the US is getting a much better asset with a higher rate of return, while also holding the banks more accountable for there actions in creating this meltdown.

Originally posted by not so crazy cannuck
reply to post by asmeone2

 

yes but by lending the banks the money the US is getting a much better asset with a higher rate of return, while also holding the banks more accountable for there actions in creating this meltdown.

The banks are the problem here. Let's not give them more money.

It's like going to a pyromaniac who's tried to burn a building, then giving him the dynomite to finish the job instead of making him fess up to what he's done.

reply to post by asmeone2

I am well aware of how the banks utter incompetence has caused the current situation. But just sitting around and ranting at the banks isn't going to solve anything. like it or not the US government has to act act before the markets plunge any further.