How does this work exactly? Goldman Sachs get 1 billion if CIT goes down, but the American taxpayer takes a loss of 2.3 billion? If this is how the banking industry does math, there's no wonder the economy is in bad shape.
The way I see it, (as simplistic as it may be,) is that a Republican President signed the original 700 billion TARP bill in 2008, when much of this debacle began. He could have, (it was well within his power to do) but didn't veto it. And Bush vetoed plenty of other things. Also, people keep making reference in the news about the treasury and it's dealings with the current economic deflation.
People. We haven't had any more than the illusion of a national treasury since 1913. Since then we've only had the Federal Reserve, which is basically a bank that prints and lends money to the United States on demand. It's a national sized A.T.M., nothing more, nothing less except every transaction brings interest on the priciple, just like a home mortgage.
The only reason the banks are failing is because the cost of running a country this way has over-extended our reliance on the Fed and the interest we need to pay them has reached a point where securing 100 years of these "loans" has finally surpassed the possibility of them ever being paid off .
The banks aren't failing, friends. The Fed and the way we run this country financially is failing...if not failed already. And unfortunately we have listed past the tipping point.
Our relationship with and the Federal Reserve or the banks/federal Reserve will never regain momentum or even a happy medium.
It's a concept who's time has gone. The bloom is off that rose.
We need an alternative to the way we've been doing things.
And considering the way the kids on Capitol Hill can't work together, that alternative will not present itself until we've slid even futher into this money pit.
About Goldman Sachs
Read the Article at HuffingtonPost
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