Bank Bailouts and Your Money

Bank Bailouts and Your Money


The whole bank bailout idea is an academic and practical failure, done by academics, most of whom are not work-a-day bankers.

They have seen to it that banks have acquired more clean capital and reserves, having gotten rid of much of their questionable assets. So far so good for the economy.

The government honchos have seen to it that banks now earn interest kept on reserves over at the Federal Reserve. That adds to bank earnings. But the regulators cannot force the banks to make loans to their customers.

So banks are now sitting with loads of available cash for industry and consumers but relatively little of it is getting out because the banks are still afraid to lend it as they do in normal times. They can make more investing in securities.

So much for the smart guys in government with the TRILLIONS of inflationary bail out money