Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: ChinuSFO who wrote (103546)	10/27/2011 4:27:54 PM
From: RetiredNow	Respond to of 149317

Well, the only thing Obama can do at this point is yell and scream at Bernanke and not re-nominate him in 2014. You see, the banks are not lending, because they can borrow at 0% from the Fed and invest the proceeds in Treasuries earning 2-3%. It's risk-free money, as long as they hold the Treasuries to term. There's no need to lend to that nasty public sphere where there is the risk of default. So if you want the banks to lend, you need to get Bernanke to RAISE interest rates, which will have the following immediate impacts: 1) increase rates that retired and other people can get on their deposits and give them another place to earn higher yield on their retirement investments 2) increase the rates that banks have to pay to borrow from the Fed, which means they'll borrow less money and seek to get a higher yield on whatever assets they have today 3) decrease the inflation rate, which shores up the value of the dollar and increases everyone's purchasing power 4) increases the rate at which companies can borrow, which means some businesses will not be able to afford to borrow anymore, but on the flip side, more banks will be willing to lend so their will be an equilibrium point where supply meets demand Anyway, Bernanke is the greatest disaster this country has ever seen. I hope he gets impeached or at the very least, not renominated by Obama or his successor.