The headlines in the financial world are telling us that we should be happy. Why? Because the amount of money our nation's private banks are
Why is this important? Because the banks can borrow from the Federal Reserve at virtually 0% interest, and then turn around and buy U.S. securities, which pay between 3-4%. Let me emphasize this point:
1. If a bank borrows $5 billion per day from the Federal Reserve (at virtually 0%) they can then ...
2. Walk down the street to purchase U.S. securities, which pay 3-4% interest ...
3. Then collect between $150 - 200 million in interest, for no other reason than they are a bank.
Well, I guess borrowing $5 billion a day is better than when these guys were borrowing $188 billion a day at virtually zero percent interest, which they did at the height of the meltdown.
My only question is where do I sign up?
Oh, that's right. We can't. We're not banks. We're just taxpayers who get to fund and subsidize this banking bonanza. But wait. It gets even better (or is that worse?)
It turns out that the
It actually gets worse when you look through the Federal Reserve numbers. But I think I'll leave it alone for now.