If you are wondering about the credit market and....
why we are even contemplating bailing out failed
lenders-----pay attention.
Our Banks have been paying savers 2 to 2.5 %
for their saving accounts and slightly more,
maybe a half percent when the put the money in a certificate
of deposit for a time period.
Then the banks are lending this money for twelve to sixteen
percent for credit card debt.
That is about six times more than banks made on the same
transactions in 1990.
Is it any wonder why the savers would dry up?
It is very expensive to save money in the U.S..
Our dollar is devaluating rapidly.
We have been borrowing from China and anyone else
that would lend us money.
Then supply and demand caught up with them.
They don't want to pay the high cost for that the U.S.
savers dollar. And there isn't enough of them.
Now they want the taxpayers to lend the money
required to keep our markets solvent.
We, the people, are not authorized investors of our
tax dollars. No one is "authorized" to do that.
Neither is our government.
That's what caused these sub-prime mortgages
to fail.
A stupid Executive Department.
Either stupid or crooked.
And they are the people that we are expecting
to get us out of this mess.
Highly improbable.