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Re: Fix income inequality with $10 million loans for everyone! 

By: killthecat in FFFT | Recommend this post (1)
Sat, 14 Apr 12 9:13 PM | 83 view(s)
Boardmark this board | Food For Further Thought 		Msg. 40678 of 65535
(This msg. is a reply to 40677 by clo)
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I want a $10 million guarantee against loss with that loan. I want zero risk like the big boys. That shouldn't cost the government anything as long as I put the money into Treasuries, or they tell me what stocks the Fed is going to pump up.

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The above is a reply to the following message:
Fix income inequality with $10 million loans for everyone!
By: clo in FFFT
Sat, 14 Apr 12 8:00 PM 		Msg. 40677 of 65535

Fix income inequality with $10 million loans for everyone!

By Sheila Bair, 
Published: April 13

Are you concerned about growing income inequality in America? Are you resentful of all that wealth concentrated in the 1 percent? I’ve got the perfect solution, a modest proposal that involves just a small adjustment in the Federal Reserve’s easy monetary policy. Best of all, it will mean that none of us have to work for a living anymore.

For several years now, the Fed has been making money available to the financial sector at near-zero interest rates. Big banks and hedge funds, among others, have taken this cheap money and invested it in securities with high yields. This type of profit-making, called the “carry trade,” has been enormously profitable for them.

So why not let everyone participate?

Under my plan, each American household could borrow $10 million from the Fed at zero interest. 

The more conservative among us can take that money and buy 10-year Treasury bonds. At the current 2 percent annual interest rate, we can pocket a nice $200,000 a year to live on. The more adventuresome can buy 10-year Greek debt at 21 percent, for an annual income of $2.1 million. Or if Greece is a little too risky for you, go with Portugal, at about 12 percent, or $1.2 million dollars a year. (No sense in getting greedy.)

much more:
http://www.washingtonpost.com/opinions/fix-income-inequality-with-10-million-loans-for-everyone/2012/04/13/gIQATUQAFT_story.html

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