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State of confusion. another 30 billion
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stray
stray
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Re: Squidonomics
Nov 06, 2009, 13:12
Squid Tempest wrote:


Am I missing something? Or are the greedy bastards just giving themselves more of the taxpayers money for fun?


Nope you're not, but maybe, well, thing is the credit market is still fucked up. Well, it isn't, maybe, whatever, the banks aren't lending still, so it's still fucked. The main problem is with this crappy QE tactic is that when the govt gets to (has to) buy these bonds back you can bet that the interest rate will be hellishly higher than it is now. This means we'll all end up spending more to get this cash back. Its crap now and it's going to get worse.

I still reckon that the govt would have been better off spending a lot of these billions (especially this last lot) to set up a seperate/parallel banking system of credit union types of things. These new mini banks would only lend to us street level punters and very small businesses at the current low rates but fixed for a very long time, and guaranteed to remain lower than current rates. It'll get the consumer market running again, also it'll help people pay their mortgages by being able to get cash to pay their banks back which will make the banks more confident to lend. Yeah, yeah, once this is setup it'll be a bastard to deconstruct, so? We can just make the requirements to lend a lot tighter as time progresses so it only helps people in the worst poverty, and small businesses that provide the most to their communities.

What I'm saying, getting at, is print this money for us and not the bankers that fucked it all up. I'm probably missing something, but I really cvan't see the problem with this approach. I mean, fuck, we've nationalised the largest high street banks anyway, and we'll never feel any benefit for it. Well, we could mutualise the fuckers, that'll learn em.
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