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Posted by Will (in IL) [98.215.26.138] on Tuesday, November 09, 2010 at 20:43:06 :
In Reply to: it is not the government posted by Bruce in BC [24.207.110.46] on Tuesday, November 09, 2010 at 20:36:34 :
For what it’s worth (no pun intended),
Today I learned why the Banks aren’t lending. The banks earn their operating cash and profits on the interest on the money they loan. So why are they holding onto the cash in their reserves and not loaning it to make money so they stay in business? Because for the first time the FED is paying them interest on their Reserves! The banks no longer need to lend money to stay in business, they can “bank” the money and rack in money with no risk and no paper work!
The following is from the FED’s own WEB site:
Interest on Reserves
The Financial Services Regulatory Relief Act of 2006 originally authorized the Federal Reserve to begin paying interest on balances held by or on behalf of depository institutions beginning October 1, 2011. The recently enacted Emergency Economic Stabilization Act of 2008 accelerated the effective date to October 1, 2008.
The government is the cause and the cure, yet another ploy to gain more control and more reasons or “crises” to enact more regulations!
We need the Fed to be a smaller less obtrusive. The FED needs to be brought back under the control of the people not the executive office.
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