John Stewart Over a Year Late...

polifrog



On Sep 22, 2010 I said:

...But, still, one must ask how these banks are paying off TARP in this economic environment. Where is this profit coming from?

The answer, in large part, is that the Fed Reserve loans them money at under 1% that they then invest in T-Bills that return 3-5 percent. The bank profits are the result of the difference.

Think about that -- our government is loaning money at interest rates that no one else will ever see, with the exception of loans between family members, to banks that then fund our national debt. In essence TARP is being paid off on the backs of our children.

The result is that the government has in effect created a risk free environment for banks to operate which crowds out all riskier investments like making loans to you, me, or the business down the street. How does this affect us?

Here is Jon Stewart over a year late:



I guess they required the year to get the graphics right... and they are good.




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