- Joined
- Aug 26, 2007
- Messages
- 50,241
- Reaction score
- 19,243
- Location
- San Antonio Texas
- Gender
- Female
- Political Leaning
- Conservative
I do have a clue, you and I disagree on the actions and results. Note I never attacked your intelligence for having a differing opinion, however you are forced to resort to attacking mine; ergo your position is weak and you cannot support it.LOL do you even understand what is going on?
The US Federal Reserve has been buying up assets from financial institutions and banks, many of them toxic, so that your banks could become some what healthy. On top of that Fannie and Freddie have been buying up toxic loans from banks further re-leaving them from bad debt (BOA just sold 76 billion dollars worth of toxic assets to Fannie for 500 million). Most of this did not add to the US debt, since the toxic **** the Feds were buying up from newly printed money was bad loans made to the people.
In the European equivalent, the ECB would be buying up state debt and writing it off basically. Not only would the banking sector get much needed cash infusion but also their balance sheets would loose the supposed bad debt. This means not only would the banks become healthy again but the national debt of countries would fall. The drawback is of course inflation, but considering that Eurozone inflation is 2 to 3% then adding a few more % is nothing and can be tackled later on when the markets are more rational plus of course it would give more time for the individual countries to fix their structural problems and get some growth into the economies.
So you have no clue about economics.. good to know.
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