Sunday, April 15, 2012

Fix income inequality with $10 million loans for everyone!

Great idea. The only problem is that you have to be a large corporation that donated to Congress and the Obama administration. Most of us don't qualify:

Are you concerned about growing income inequality in America? Are you resentful of all that wealth concentrated in the 1 percent? I’ve got the perfect solution, a modest proposal that involves just a small adjustment in the Federal Reserve’s easy monetary policy. Best of all, it will mean that none of us have to work for a living anymore.

For several years now, the Fed has been making money available to the financial sector at near-zero interest rates. Big banks and hedge funds, among others, have taken this cheap money and invested it in securities with high yields. This type of profit-making, called the “carry trade,” has been enormously profitable for them.
Source: Sheila Blair, Washington Post

No comments: