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• T0AD commented on Investment banks borrow money from gov't at 0%, lend it back to them at 3%
  I haven't read any objectivist purre philosophical work, but have read some of Ayn Rands novels. From what i get out of the ideas of Atlas Shrugged I don't think there would be any excuse for a government to lend money. In fact the book entirely complains about any type of government policy that involves itself in business. Also i believe i read somewhere that the banks not only got a 0 interest rate but they got money at a discount from the "discount window". The got something like an extra 33% so like asking for 66 dollars and being...
• bbreader commented on Investment banks borrow money from gov't at 0%, lend it back to them at 3%
  Be sure to see the Bill Moyers interview regarding this and Goldman Sachs use of interest free loans the Federal Reserve to invest in a risky Chinese car company. Guess who's on the hook if that investment fails? http://www.pbs.org/moyers/journal/10092009/watch.html...
• LRM commented on Investment banks borrow money from gov't at 0%, lend it back to them at 3%
  The Fed is not a private bank. They are overly influenced by private banks, I would agree, but they are a government institution founded by Congress. Ben Bernanke's paychecks are from the U.S. Government. And call me starry-eyed, but I do believe that public expressions of outrage are effective. It worked for immigration and I think it can have an effect here too. For starters, we need to make taking a donation from the banks like taking a donation from NAMBLA. The way we do that is to keep raising up the issue and keep pointing out how people are...
• SamSam commented on Investment banks borrow money from gov't at 0%, lend it back to them at 3%
  @ IronEdithKidd: No, the yield quotes are generally APYs (I haven't found a reference to anon's 13-week link, but I would assume this). This means that, at the rate that you're getting for your 13-week bond, if you held on to it for an entire year, you would get 0.6%. Most banks would consider this a very bad rate of return, because a) inflation will probably out-pace it, b) they generally prefer riskier bets with higher yields. In fact, according to MorningStar, actual 3-month yields are 0.08%. Two-year rates are 0.99%, or roughly half a percent APY. Again, this article...
• Cowicide commented on Investment banks borrow money from gov't at 0%, lend it back to them at 3%
  Thanks for the link to that video; it was very educational for me....