Let me keep this very simple. Government TARP gave money to Banking & Financial Institutions by printing money from our US Treasury to enable them to stay solvent and begin lending money to businesses and consumers. The Banks are now stable because they received these billions and are in turn buying "treasury notes" with their surplus cash in mass which keeps interest low and not lending. Therefore banks having no obligation to offer attractive money market rates or CDs to their bank customers keep safe modest returns and get very wide profit margins from their outstanding business and consumer loans.
The Government and Treasury are continuing to stimulus Housing ($8,000) first time home buyers program and Auto Industry by ($4,500) cash for clunkers! They have also been busy buying into the Equity Market on the "qt"to instill confident.
Its now a game of what came first "the chicken or the egg" which no one knows or willing to admit?
Now we are way in uncharted waters!!
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