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Politics : President Barack Obama
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To: RetiredNow who wrote (103120)10/15/2011 1:39:20 PM
From: tejek  Read Replies (2) 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.

There are only two major investment banks left on Wall Street......MS and GS. And yeah, they are banks but in a very different sense than your average US bank. You can't say the average US bank = GS. Their revenue streams are very different.

And frankly, I am much more freaked out by GS than I am by say US bank. The average US bank is acting like the small child caught doing something bad and sent to the timeout corner. They are working to be better and regain their credibility However, GS and MS do not care what the rest of us think.........they will manipulate the system and screw whomever to get their profits.

And yes, I knew that GS turned itself into a a bank holding company.

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?

Because that's how you grow your business. Banks are so freaked out they are afraid of their own shadow and are not growing their businesses at all. They have swung the other way. However, that won't last.........shareholders will want to see revenue and profit growth.

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.

You're an ideologue. You see socialism and communism around very corner. Frankly, its non productive. I am not sure what happened to you since voting for Obama but you're thinking has become very twisted.
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