fedwater wrote
"Boy! That is a long explaination. But it actually is very simple. The banks were given TARP to prevent their 'insolvancy' from being seen. Accounting rules were changed to show them as 'solvent'. They were given 0.00% to 0.25% loans on which they could collect up to 29% on credit cards to give them zero risk on their profit drivers. They were allowed to engage in High Frequency Trading to generate income. Thus they were given 'tools' to insure that they could make money while their losses were posponed in recognition. The game is that they can 'earn' their way out.
But, as foreclosures mount, their 'profitability' was in doubt, so various incentives to cause people to buy real estate were given.
Bottom Line: A system was constructed to guarnntee bank profits. They can buy T-bonds yielding 3% by borrowing at 0.25%. Now that is one big spread.
Then we have HARM, HARP, etc. to reward them from 'foreclosures'. It is all about keeping the banksters whole. Every single Obama program (and I regret giving him money) has been a continuation of the Bush policy to pay bankers at government (taxpayer) expense. And they will continue to do this, however it is getting harder as more people see the truth.
This is the greatest theft in the entire written history of the world. And it continues. Only Iceland has said NO!"
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