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Politics : President Barack Obama
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To: tejek who wrote (102971)10/15/2011 8:44:40 AM
From: RetiredNow  Read Replies (3) of 149317
 
I do blame the banks. But you seem to think Wall Street is not a bank. I bet you didn't know that all the major Wall Street firms reorganized as bank holding companies so they could tap into the Fed's zero percent interest rate policies. Nope didn't think so. The Banksters are Wall Street and Wall Street are the Banksters.

As for why the banks are not lending to businesses, I'll ask you a simple question. If you could borrow at 0% and use the money to buy Treasuries at 2-3%, for a risk-free rate of return of 2-3%, why would you have any incentive whatsoever to lend to businesses in the free market?

ANSWER: You wouldn't. This is why Central Economic Planning like the Communists and Socialists do it DOES NOT WORK. If you want banks to start lending to businesses, then you need to stop all the Fed intervention and let interest rates float freely...you know, as in freely in a free market.

This is the central problem with communists, socialists, and all the other central economic planners who believe in interventionist government. Their actions make things worse, because they distort markets in very predictable ways. In the short term, the distortions even sometimes actually look like they work, but people are smart and they shift their actions constantly to protect and grow their own money. Eventually, the palliatives wear off and and even greater dose is required. We've already played that game to the limits. The only thing left is a full dose of free markets to let the excesses get wiped out. But you want more heroin.
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