Originally Posted by GatorFanCF
Good post, RealGator. An earlier posted said "Well, I suppose that's EXACTLY what Boehner & McConnell are thinking and why they've fought every effort to spur job growth...."
Read more: http://www.gatorcountry.com/swampgas...#ixzz2MFlQkL5s
The typical example of an "effort to spur job growth" is the TEMPORARY
Federal Government cash infusion to:
1. Hire teachers (for a year, then local governments must shoulder burden).
2. Hire "first responders" again -for a year; then, local governments.
3. Train to Tampa - FED Gov't offers 5 billion to help build it - then it's up to the I-4 corridor to maintain it and keep it going. Gillette made billions GIVING people the razor so they had to buy their blades...Fed Gov't does the same w/ votes.
4. Healthcare exchanges - again, some states are saying "no thanks" because Fed Gov't offers the up front help....then is long gone when the ongoing work needs to be done.
Why don't we just print 20 Trillion dollars a month and hand it out to the folks? - that's over $60,000 for every person in the USA per month! - everyone will pay 39.6% tax rate so Fed gets much of its money back - everyone is soon a millionaire (or dead from drug addiction) and the economy will be booming with average homes costing $1 million and money flowing everywhere!!! This is a limit to the madness - and we will know where it is when it is too late.
Because that's not how we're "printing money"....
The Fed is getting collateral...during the QE programs alot of MBS
Because when the crisis happend one of the sticky issues was how to get the
bad paper off the books of the banks...
We changed the rules regarding mark-to-market to artificially make the banks look stronger
Lot of ideas were floated but the general stuborness of the banks to recognize that the public sector basically saved their A$$...they asked for more than the paper was worth.
Public-Private Partnerships were discussed...trading markets, all sorts of partnerships
Eventually, the administration chose to buy in the paper thru the Fed rather than do something way overmarket and overpay the banks (another bailout)
The MBS related assets on the Fed balance sheet will outperform
They will be successful sucking the excess money out of the system
I think the administration wins on TARP, Maiden Lane, QE but loses on GM
For saving the global financial system?
I'll take it.