Do You Realize That The Government Is Still Paying Banks Not To Lend…?

Friday, August 19, 2011
By Paul Martin

By Henry Blodget

One of the most outrageous “open secrets” of U.S. government policy these days is that the Federal Reserve is still paying big banks not to lend money.
And it’s doing that while screwing average Americans who have been responsible and lived within their means.
The Federal Reserve is quietly continuing with one of the many outrageous bank-bailout programs it initiated during the financial crisis–the one in which it pays big banks interest on their “excess reserves.”
What are “excess reserves”?
Money that the banks have but aren’t lending out–money that banks are just keeping on deposit at the Fed.
The Fed is paying banks 0.25% interest on this money.

The Rest…HERE

Leave a Reply

Support Revolution Radio

For a limited time only, your donation get you a special perk. Every $30.00 donation gets you a fancy "say no to Government Hat". Every $20.00 donation gets you the same, but on a wonderful coffee mug. Just click the button below and give till it hurts...