Charles Schwab: The Fed should stop bailing out banksters

Helicopter Ben now only gives to the already rich

Schwab’s op-ed in the WSJ is phrased more diplomatically than that. Let Business Insider translate.

It’s time for the Fed to stop screwing savers and bailing out banks and borrowers with 0% rates

The Fed policy of near-zero percent interest rates is ostensibly supposed to spur lending by banks and grow the economy. Instead banks borrow from the government at near-zero then lends it back at about 3%, making a guaranteed no-risk profit. So, the banksters make billions and the economy at large gets no help. How cozy. And compromised.

Instead, the Fed needs to let interest rates rise to normal levels so banks start private sector loans again. Besides, you can’t borrow your way out of a debt recession. The only way out is by paying down debt and not by giving banksters sweetheart deals, something the Obama Administration does way too often.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.