From the Wall Street Journal:
Borrow from the Federal Reserve at zero and lend to Treasury for a profit. That’s some racket.
Treasury Secretary Tim Geithner and Federal Reserve Chairman Ben Bernanke have announced that the recession is over. Now that the Dow Jones Industrial Average has broken the 10,000 mark, we’ll surely be hearing assurances that economic growth is here to stay. But the credit markets are in much worse shape than some indicators suggest.
Read more here
Ms. Lee, an adjunct professor at New York University, is a former investment banker and hedge-fund partner.
2 Responses to “The Banking System Is Still Broken”
While the big banks receive billions at 0%, do not lend, cut employess, cut credit lines, increase fees, rarely renegotiate mortgages, the consumer finds himself in a “no win” situation with only one means of survival: stop doing business with these crooks and use local small banks, credit unions, etc.-or don’t be surprised when things get worse!
I don’t think there will be any “fix” for this system. How? The government is essentially owned by GS and the like. They are going to police themselves??? GS and friends WILL destroy the economy and then ask for pity, I prefer the Jay Gould type who are plunderers and tell you so!George HarterBaghdadontheHudson, USA