http://www.pbs.org/wnet/need-to-know/... Much has been made of the $700 billion in taxpayer money used to bail out the banks in the Troubled Asset Relief Program (TARP). But Bloomberg News reporter Bob Ivry explains to NEED TO KNOW that the true cost was actually closer to $12.8 trillion. Need to Know airs Fridays on PBS. Watch full-length episodes of Need to Know at http://video.pbs.org/program/1458405365/" onclick="window.open(this.href);return false;
Re: True Cost Of The Wall Street Bailout
Posted: February 26th, 2011, 6:58 pm
by Rincon
Removed
Re: True Cost Of The Wall Street Bailout
Posted: February 26th, 2011, 7:09 pm
by Like
I found it interesting that PBS was the one making this video.
Re: True Cost Of The Wall Street Bailout
Posted: February 26th, 2011, 7:25 pm
by davedan
People don't remember that banks operate on FRACTIONAL RESERVES. That means, if you give a bank 1 Trillion dollars at a 10:1 fractional reserve rate, the bank will turn that 1 Trillion into 10 Trillion new money in the money supply. If that money is just printed, as opposed to made by the selling of TBills, then the dollar is devalued by that amount and commodities go up by that percentage.
Re: True Cost Of The Wall Street Bailout
Posted: February 26th, 2011, 7:32 pm
by Like
good point
Re: True Cost Of The Wall Street Bailout
Posted: February 26th, 2011, 11:04 pm
by Jason
davedan wrote:People don't remember that banks operate on FRACTIONAL RESERVES. That means, if you give a bank 1 Trillion dollars at a 10:1 fractional reserve rate, the bank will turn that 1 Trillion into 10 Trillion new money in the money supply. If that money is just printed, as opposed to made by the selling of TBills, then the dollar is devalued by that amount and commodities go up by that percentage.
They can only accomplish that if people are willing and capable of borrowing....like having a credit card with a line of credit for a billion dollars you never borrow. Until you borrow the money and put it into circulation (create the money).....its meaningless.
Right now the reverse is happening - payment of debt, default of debt, decline in borrowing, etc. Deflation!