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I’m willing to take that loan if the interest rates go negative. Paying me to borrow their “money” is the only way I’ll participate. Until then I’ll just keep stashing nickels and sorting my pennies. :)
But Kel, the very idea is that you take their low-interest loans, then buy their slightly higher-interest bonds, quit your job, and live like a … government crony. :-) So the interest is “negative” in many senses of the word.
I read the first 3 paragraphs and then checked out her page on !wikipedia. Are we sure it’s suppose to be humor?
Since she’s out of office in 2011, then that means the buck should have stopped with her on taking prompt corrective action when seizing the banks that were below the minimum amount of reserve assets that are federally mandated to be held.
The idea being that the FDIC should have seized the banks, told the bank shareholders that they were SOL, and sold the remaining assets / loan paper on the free market so there was enough cash to cover all the deposits up to the current FDIC limit. Oh, and she should have had this done, _before_ the banks themselves got so freaking under water that the FDIC had to spend taxpayer dollars making good their promise of covering all the deposits.
Had she done that, then there wouldn’t be any banks that got millions of dollars in loans at sweet sweet rates that had to be backstopped by future taxes around the neck of our kids and the unborn.
Had she not been allowed to do that, she should have then called a press conference and publicly resigned. Only then would I be willing to cede her any of the moral high ground.
I’m kind of with, Standard Mischief (dot) com on this one. “Are we sure it’s suppose to be humor?”
In the back of (or center) of my mind at the time I commented was this from Iceland, via Bloomberg on Feb 19, 2012:
“Since the end of 2008, the island’s banks have forgiven loans equivalent to 13 percent of gross domestic product, easing the debt burdens of more than a quarter of the population, according to a report published this month by the Icelandic Financial Services Association.”
Are they forgiving even more loans today? I don’t know, but it’s quite a bit like printing up some money and handing it out.
What better way to buy votes is there? I’m sure they see it as a win-win situation. [Evil laughter – from them.]
Oh, I don’t doubt that Sheila Bair is writing from the long tradition of government people who courageously stand up for what’s right after leaving positions where they could have done something about it.
But I still think it’s a sharp little piece of satire.
“But I still think it’s a sharp little piece of satire.”
And it’s her satire that leads me to think she probably did mean what she’s writing. For I know of _very few_ in public office who have the sense of humor to speak or write in a satirical manner or play devil’s advocate for the opposing viewpoint. Especially is this true of the “liberal” or Democratic view: few have the ability to understand, let alone verbalize, their opposition’s thinking.
She may have also aquired a better sense of economic reality since living in the private sector.
Economic reality is starting to bite world wide… as it always does. There’s actually been three Fed governors who’ve called for economic sanity, not that they get a lot of press coverage, but it’s still both hopeful and frightening at the same time. I’m betting that those Fed governors know nothing’s going to change but are all too aware of how this is going to end and end soon. They want to be able to say, “I warned you”, which might keep them from swinging from some lamp post somewhere.