Thursday, March 11, 2010

Federal Deficit hits Record in FEBRUARY!

1 comment:

  1. You have to ask who in their right mind would lend them the money. This is what I think is happening:

    The fed is printing the money on a hard drive, lending it out to their client banks at 0.50-0.75%, (which the client banks happily take since they are the fed). The client banks then lend the money to the US treasury as 3-4%. The amount of money is massive and gives the client banks enough money to pay huge bonuses to its execs. In the meantime, the banks do not have enough money to face the bowwave of dead mortgages that are coming up this year and next. Additional money is being lent by the fed to the client (i.e. top four JPM, GS, BAC, C) banks to help them handle this disaster of their making.

    Bottom line, this circle jerk allows the treasury to continue borrowing as directed by a fiscally irresponsible congress. Meanwhile, if they don't go under from their bad loans and their mortgage backed derivatives, the banks will get rich from the US taxpayer.

    It will all come home to roost as inflation. The only thing that cannot be predicted is when and how bad.