Skip to comments.Dr. Peter Morici: Taxing grandma to pay Goldman Sachs
Posted on 04/15/2009 8:01:26 AM PDT by FromLori
Monday afternoon, Goldman Sachs reported much larger than expected first quarter profits, and this comes on the heels of Wells Fargos strong earnings reported last week.
No one should be surprised.
The Federal Reserve has provided the banks with lots of cheap funds through its various emergency lending facilities and quantitative easing.
The Federal Reserve has permitted the banks and financial houses to park vast sums of unmarketable paper on its bookssecurities made nearly worthless by the misjudgment and avarice of bankers. In return, the Fed has provided these scions of finance with fresh funds, cheaply, that they may lend at healthy rates on credit cards, auto loans and even mortgages.
While the Fed cuts the banks slack, the bankers are busy turning the screws on their debtors by raising credit card rates and fees, and harassing distressed borrowers with all the zeal of the Roman army sacking Palestine.
It takes good banking skills to borrow at three percent and lend at five and make a profit.
It takes much less business acumen to borrow at two and lend at five and make a profit, and that is exactly what has happened. The extra fees are just gravy.
Increasing the spread for banks is like subsidizing parts purchases for car companies. The folks at GM would look like wizards if the Fed had been similarly generous with them
(Excerpt) Read more at finfacts.com ...
Remember in 1992 when they claimed how bad the economy was and that GHW Bush “cooked the books” when efforts were made to challenge the MSM and then after the election we were told that things weren’t as bad as we’d been led to believe?
Anti welfare and protectionist policies are only acceptable when the “elite” are the beneficiary...correct?
Then why the bailout’s to start with? The whole thing stinks...and we never did get a striaght answer from D.C..
We where told by Paulson, hand over the cash or the sky is going to fall...now we are to believe everything is coming up roses and no one ever really needed the money WTF...
Then if that is the case where is our 800 billion dollars?
...and we were never told who got how much, so how are we to believe what we are actually being paid back is in fact what was borrowed...the whole thing stinks and by the likes of today many other Amercian’s don’t like it one bit either.