Bush gave them your money. The Emergency Economic Stabilization Act of 2008. $700 billion. Then Sec. of Treasury Paulson demanded it. With no conditions. I watched it with my own eyes.Bush signed into law as TARP – aka the “Bank Bailout”.
Anyone who thinks that liberals are the ones who defended the lack of regulation in banks is not a rational actor. Skip, yes, we really think you are that stupid. Because you work so hard to make it evident.
Years ago, when interest rates for CDs and other savings accounts were very high people could count on interest money to nicely supplement their spendable incomes. However, since in most cases the interest was taxed upon maturity of the account, people had problems paying the taxes all at once on their income tax returns – the money was already spent, not enough in reserve. /
There was discussion in Congress to have interest income deducted in a similar way that wage taxes were. The banks were upset, and I remember receiving little memos in my statement envelopes from whatever bank to write Congress to protest the idea. I sent them in – apparently a lot of people did. As a result of this protest campaign by banks, Congress backed off. /
I also seem to remember that Reagan allowed financial institutions such as banks and savings to no longer pay interest set at a certain amount for passbook accounts. (For many years it was Banks: 4.25 percent; Savings and Loans: 4.5 percent.) He said the market could determine the rates and it was as likely that rates would go up as go down (due to market competition, don’t you know). NOTE: This happened a long time ago, I rely on memory for the above, details might be wrong. Both political parties share the blame. /
As we should have suspected, rates dropped. (Savings and Loans eventually became rare, as they could no longer give an extra .25 percent beyond banks’ passbook interest.) They’ve continued to drop until we’re at this point where interest rates are in small decimal amounts below one percent. /
We no longer live in a truly free economic society; the market no longer determines what happens. Interest rates on government financial instruments are purposely set low to “stimulate the economy.” Banks set their rates to those of the Government. People who thought interest income per their savings would supplement their retirement incomes in a meaningful way are out of luck.
This situation has been called by some The Senior Tax. But in the “Smile Now – It Gets Worse” category, be aware there’s a possibility that rates could go NEGATIVE! Read the following: /
Over the years, financial institutions have cried Wolf many times. Most of time, the government gave into their requests for better treatment – and each time, within six months, the banks were invariably making record profits. As it turns out, they would more truthfully have squealed, “Oink.”/
Financial institutions are now international, and they have such a stranglehold on government policy— it’s an historical scandal, to put it mildly. Those who run the biggest ones have no apparent real shame, witness their disgraceful actions during the recent crisis. Wall Street led the way, of course, but the banks followed. For now, we vote in one rascal after another, hoping that will make things better. It doesn’t. /
People should have to take only so much. How will this all end – in larger and larger protests, in armed conflict?
Does anyone here seriously believe that bankers don’t own both parties? The problem is a moral problem — our country has evolved to equate the accumulation of money with merit and now it’s infected our political system like a cancer. One really good teacher is worth a thousand millionaire bankers.
corzak almost 12 years ago
Bush gave them your money. The Emergency Economic Stabilization Act of 2008. $700 billion. Then Sec. of Treasury Paulson demanded it. With no conditions. I watched it with my own eyes.Bush signed into law as TARP – aka the “Bank Bailout”.
ARodney almost 12 years ago
Anyone who thinks that liberals are the ones who defended the lack of regulation in banks is not a rational actor. Skip, yes, we really think you are that stupid. Because you work so hard to make it evident.
Tue Elung-Jensen almost 12 years ago
Yes you are, and you constantly admit to it with your comments. Corzak provides proof not just random comments.
emptc12 almost 12 years ago
Years ago, when interest rates for CDs and other savings accounts were very high people could count on interest money to nicely supplement their spendable incomes. However, since in most cases the interest was taxed upon maturity of the account, people had problems paying the taxes all at once on their income tax returns – the money was already spent, not enough in reserve. /
There was discussion in Congress to have interest income deducted in a similar way that wage taxes were. The banks were upset, and I remember receiving little memos in my statement envelopes from whatever bank to write Congress to protest the idea. I sent them in – apparently a lot of people did. As a result of this protest campaign by banks, Congress backed off. /
I also seem to remember that Reagan allowed financial institutions such as banks and savings to no longer pay interest set at a certain amount for passbook accounts. (For many years it was Banks: 4.25 percent; Savings and Loans: 4.5 percent.) He said the market could determine the rates and it was as likely that rates would go up as go down (due to market competition, don’t you know). NOTE: This happened a long time ago, I rely on memory for the above, details might be wrong. Both political parties share the blame. /
As we should have suspected, rates dropped. (Savings and Loans eventually became rare, as they could no longer give an extra .25 percent beyond banks’ passbook interest.) They’ve continued to drop until we’re at this point where interest rates are in small decimal amounts below one percent. /
We no longer live in a truly free economic society; the market no longer determines what happens. Interest rates on government financial instruments are purposely set low to “stimulate the economy.” Banks set their rates to those of the Government. People who thought interest income per their savings would supplement their retirement incomes in a meaningful way are out of luck.
This situation has been called by some The Senior Tax. But in the “Smile Now – It Gets Worse” category, be aware there’s a possibility that rates could go NEGATIVE! Read the following: /
http://www.suntimes.com/business/savage/13994636-452/negative-interest-rates-are-possible.html
Over the years, financial institutions have cried Wolf many times. Most of time, the government gave into their requests for better treatment – and each time, within six months, the banks were invariably making record profits. As it turns out, they would more truthfully have squealed, “Oink.”/
Financial institutions are now international, and they have such a stranglehold on government policy— it’s an historical scandal, to put it mildly. Those who run the biggest ones have no apparent real shame, witness their disgraceful actions during the recent crisis. Wall Street led the way, of course, but the banks followed. For now, we vote in one rascal after another, hoping that will make things better. It doesn’t. /
People should have to take only so much. How will this all end – in larger and larger protests, in armed conflict?
Chillbilly almost 12 years ago
Does anyone here seriously believe that bankers don’t own both parties? The problem is a moral problem — our country has evolved to equate the accumulation of money with merit and now it’s infected our political system like a cancer. One really good teacher is worth a thousand millionaire bankers.
corzak almost 12 years ago
Fuzzy Thinker Premium Member almost 12 years ago
There needs to be a fee charged on every financial instrument transaction. And put it in the “Pay for Bank Meltdowns” fund.
josefw almost 12 years ago
Just a theory. Read the article I posted, they bring up Lincoln as well.