Saturday, April 21, 2012

Free $10 Million Loans for All!

Sheila Bair ex FDIC chief
By Matt Taibbi, Rolling Stone
21 April 12

ave been on deadline this week, but wanted to post a few interesting links:
• I hope everyone saw ex-Federal Deposit Insurance Corporation chief Sheila Bair's editorial in the Washington Post, entitled, "Fix Income Inequality with $10 million Loans for Everyone!"

The piece might have set a world record for public bitter sarcasm by a former top regulatory official.
In it, Bair points out that since we've been giving zero-interest loans to all of the big banks, why don't we do the same thing for actual people, to solve the income inequality program? If the Fed handed out $10 million to every person, and then got each of those people to invest, say, in foreign debt, we could all be back on our feet in no time:
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.)  READ MORE 

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