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Will The Government's Entry Into Small Dollar Lending Mean Bernanke Is About To Start Handing Out Cash To Everyone?
Deep in the bowels of Donk (DOdd-fraNK Financial abomination bill, whose 2315 pages nobody has read in their entirety), in Title XII: IMPROVING ACCESS TO MAINSTREAM FINANCIAL INSTITUTIONS, section 1205 is a provision titled "Low-cost alternatives to payday loans" in which the government outlines its plans for establishing what is essentially a payday loan advance business (and even odder, the title of Sec. 1205 in the Index references "payday" loans while the actual title of the section is "small dollar" loans - was mere "payday loans" too narrow a definition for the government and got changed in drafting, with the index remaining unchanged?)
In Section 1205, LOW-COST ALTERNATIVES TO SMALL DOLLAR LOANS we read:
(a) GRANTS AUTHORIZED.—The Secretary is authorized to establish multiyear demonstration programs by means of grants, cooperative agreements, financial agency agreements, and similar contracts or undertakings, with eligible entities to provide low-cost, small loans to consumers that will provide alternatives to more costly small dollar loans.
(b) TERMS AND CONDITIONS.—19 (1) IN GENERAL.—Loans under this section shall be made on terms and conditions, and pursuant to lending practices, that are reasonable for consumers.
Does this mean the government is going into the business of direct lending and bypassing the stingy banks completely? As payday loans tend to be the most usurious of all short-term credit instruments for the lower classes, will the government's intervention into this most recent arena result in the obliteration of the existing business model for payday lenders? But far more importantly, will the government use this platform as a means to provide cash to virtually anyone in exchange for shoddy collateral and mere promises to repay the loan? And nowhere in the text is it said the loans are even collateralized with something like a deferred paycheck: these loans could very easily be on par or even worse than NINJA loans, in which the ability to breathe and walk at the same time is sufficient for eligibility, while the ability to actually repay never even figures in the loan officer's mind?
And lastly, what will be the penalties for delinquency and/or charge offs? Since this will come straight from the government's balance sheet (i.e. the Treasury), without bank intermediation, this will be the perfect forum for the government to lend out at any terms it desires, with the implicit understanding that it has no interest in getting paid back.
Is Ben loading up the chopper for one more flight in which he will start handing out non-recourse, no-collateral, no interest rate loans to all of America in one final, valiant attempt to reflate the economy?
h/t Geoffrey Batt
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Where do I go for my loan? I have collateral; some string, bits of wood, a mint...
Wonder how much I can get for belly-button lint?
That's too useful. The only thing they'll back the FRN with is vacuum and the .gov already has a law somewhere saying they own that.
You heard the man:
Deep in the bowels of Donk
Please, just one teeny-tiny little mint?
http://www.youtube.com/watch?v=Y2Bs1ZZ-7b8&feature=fvsr
i've got some chickens and some damn healthy heirloom tomatoes.
What variety of heirloom tomatoes are you growing? What are the characteristics?
Just to jump in, I've had phenomenal success with a wide variety of heirloom seeds. I now have Campbell's, Rutgers, African Togo, Tommy Toes, and others including a big Texas tomato. Got them on eBay really cheap. Great family farms are putting these out.
Most packs include instructions on saving seeds from your crops.
Here is a quick link to the search for heirloom seeds:
http://tinyurl.com/25fwnne
I've got a good shoe. Size 11 (right). It is Nike so obviously worth something?
You guys are a bunch of sad sacks and nervous nellis! Why here we have a Fed Chairman again, going the extra mile, to provide worthless currency for a return on future worthless promisary capital.....er.... I got some rusty fish hooks for that bit of string?
Let's set up a hedge fund. I have some cat hair and used coffee grounds.
That oughta get you access to the discount window.
Continue using coffee grounds till they turn white...serve them as grits
"will the government use this platform as a means to provide cash to virtually anyone in exchange for shoddy collateral and mere promises to repay the loan?"
Why is this a question?
The Business Model of DC AmeriKa has already been established.
-Drive the NINJA home loan lenders out of business so FNMA, Freddie, FHA can take the business.
-Screw the senior secured bond holders and Give GM and Chrysler to the UAW.
-Continue the Tort Law Charade.
-Jam 30 Million people (unwillingly) into full paying clients of the HealthCare Monopoly
-Reform the Wall Street business model to further shelter it from competition.
Why is this even a Rhetorical Question?
We, the common man, the New Peasantry are to be endlessly screwed by the New Versailles.
PS Any of the preceding actions described are illegal when committed in the Private Sector.
Welcome to the New Mercantilism
"Where do I go for my loan? I have collateral; some string, bits of wood, a mint..."
Tough guy - what do you think the value of your collateral would be? i am sure they will take your word for it....viva obama - bernanke!
Agent Smith will see you now, come in.
http://www.youtube.com/watch?v=cHJJQ0zNNOM
My paycheck is $1T I swear. I'll take a loan for 75% of that right now...
You can use it to buy three eggs!
...and buy as much gold as possible and leave the country.
If your statement above isn't already deemed a felony, it will be within two years...
And with our esteemed colleagues in the House and Senate precedent of making ridiculous laws retroactive, perhaps he should consider deleting the comment now.
Too late, it went into some NSA database as soon as he thought it.
"as soon as he thought it."
Oh fuck me, so true.
Martha, would you get the door Ghiol Ummmph Grook We! Stop! Shit! Owh! That hurts! llerab Ghack uhhhh kggggh
Next up: Government Used Car Sales.
"What's it going to take to get you into one of these top of the line Government Motors?"
Missed this ?
Subprime is contained......within the US guvmint.
Gubamint Ripped Ownership Right Outta the Public's Hands, Screwed the Senior Secured Bond Holders, Felt like Sloppy Seconds and Thirds, Gave it to the UAW for Free, Bailed out the Hedgies who Owned GMAC, and BAM! Jump Right Back Into It Again On Taxpayer Money on Gubamnit Watch.
And these People Wonder the Fuck Why They're not Everybodys Favorite Uncle Ernie as they Fiddle About! (Primal Scream)
A shiney Grovelmint Model A did you say?
Funny image. GrabberMint Mowtors.
Red White and Blue in the face. Umerika is chokng on something!
ORI
http://aadivaahan.wordpress.com
naw, man, a brand new 6000SUX
The sheeple should have passed on 'cash for clunkers'...no clunkers = no collateral = no Fed 'loan'
This is how you fund an ACORN army.
Bingo, see my comment below. This is iRobot but the robots are human.
(Primal Scream)
Current ad on TV for payday loans at 1260% APR,will Govt be 1259% APR ........ ?
Maybe like 20% because there is less risk, the Marines will be called in to do collections. Get my drift?
I think "payday loans" implies that a person is employed and getting a paycheck. Small dollar means you can leverage your .gov bennies(food scooters, unemployment check, section 8 check, SSI check).
Soon to be in Der Spiegel: "We're SCHMUCKS AGAIN...and AGAIN..."
Don't kid yourself, government loans are the worst kind of all. Personal bankruptcy does not wipe them out, they hang around your neck forever or until paid. And they WILL garnish you wages to get the money.
The loans will be based upon your income i.e taxes.
...and not dischargeable in bankruptcy, like student loans.
incoming debtor's prisons, with waged work one dollar an hour, paid towards your debt, run by Wackenhut Inc.
gets 'em off the street, all herded together, productive. win-win.
(Amoral hat on) Except that the cost of running a private prison would easily exceed the value of inmate labor that you could realistically get out of it, at least within any framework that even the sheeple would be likely to tolerate. Dead end financially, (amoral hat off) totally apart from the obvious and severe moral and political problems with it.
Debt makes up the difference. Haven't we all learned that by now?? (sarcasm off)
How long until existing student loans are forgiven by a few tours in Afghanistan?
are you living in this country? what do you mean the government loans are the worse....etc.... they will change the law so the loan can be wiped out....as in zero....
what did they made with FASB? change the law....as simple as that....
the man told you: he will drop money of helicopters - why dont you take him on his word?
The man did not say where he would drop the money from helicopters... my guess is the Hamptons, Wall St, Rayburn Building, Old Senate Office Building... and similar locals
This is the establishment of the uplink to Vikki (iRobot). Soon, all mayhem will come from these payday borrowers. Too bad they won't have a red light on to tell us of their malintent. Maybe we will be able to use some other means to identify them.
will smith = b.o. - al jolson
corollary:
b.o. = will smith + al jolson
English debtors that were shipped off to the Virginia Colony as indentured labor were branded with a V on their chest when they complained...about anything. Only one in five lived through their 7 year indenture. Maybe a D (debt) branded on the forehead would be the modern equivalent.
As long as APMEX will send me Ag for FRNs...
Sign Me Up!
Dude, thanks for the idea !
"I got my gold, at no cost to me"
"...but wait, there's more! If you call within the next 15 minutes..."
Will send you a pair of Michelle Obama press on nails and false eyelashes...
How do I apply for Undocumented Illegal Alien status?
Thank God the gubbermint will help these poor souls. And since the gubbermint will administer the program we know that there will not be any fraud. (Sarcasm off)
Hell no, they'll be like the student loans. They'll own your ass forever and garnish your wages until the end of time.
Corporations do socialism much better than the government in the United States.
Debt slavery for the masses, free money for the banks to make it happen, serflike employees who can be counted on to not complain lest they lose their jobs.
What's not to like?
http://www.youtube.com/watch?v=grYBKcuWowM
Pssst! Hey kid, The first ones free
Also expect a government rating agency to open soon to replace the public agencies that now refuse to let companies use their rating to float bonds (they don't know what their legal exposure is under new Dodd/Frank law).
HAAAAHAAAAA my lord.... this will not work!
And I quote: " Entities awarded a grant under this section are required to promote financial literacy and education opportunities, such as relevant counseling services, educational courses, or wealth building programs, to each consumer provided with a loan pursuant to this section. "
BRaaaHaaaBRaaa... all to borrow a piss ant $400.00 yeah right. You borrow $400.00 from the local payday loan store and it costs you $40.00 and it's done and over with. Who the hell is going to jump through fire for $400.00 dollars. Just go down to the local Payday loan store, borrow the money - they say thank you - customer says thanks you - and that's it and NO f'in re-education and what a dumpshit you are.
Payday loans are a multi BILLION dollar business. Why do they think that is? Because people want it.
BRaaa HAAAAABraaaa. Do they have any idea how much money they are going to lose? BRaaaa HaaaaaBRaaaaa!!
Stupid is what stupid does...
http://www.urbandictionary.com/define.php?term=donk
DONK
1. a very round, attractive ...
8. in poker, a player who will call any bet rather than fold, even when their cards are bad. Named for the ignorant and unmoveable donkey, the "donk" won't ever move out of a hand and fold, no matter how much you bet. Thus bluffing does no good against donks#8 seems most appropriate. Our congress/Fed/Treasury will just keep betting the farm on the same policies - hoping to catch a break on the river.
Elevator music at the FED?
http://www.youtube.com/watch?v=tpprOGsLWUo
And you thought micro-loans were just for poor rural Indian farmers.
"For just pennies a day you can sponsor a meth-head"
I have a busienss plan which might qualify for the new Bernake Small Business Innovation Research entrepreneurial loan.
Buy physical gold , keep it in another country, wait for the US to crash, and sell for a profit.
Its a high probability trade unless there is world destruction from nuclear war,an asterioid wipes out the planet, someone lights the gulf on fire and everyone chokes to death etc...
no kidding i was at the website for an upscale Euro vendor to the rich and famous, and you can buy gold bullion with your credit card. Imagine.
Implicit.
Do it. I'll participate and store, here in India.
It's chaotic enough here to keep it safe.
Let me know.
I'm serious. Other ZHers too. Keeping the shiney in america is un-smart.
For everything else there is Hawala!
;-)
ORI
http://aadivaahan.wordpress.com
So far, the bulk of the massive wave of "liquidity" (the new name for electronic money) that the Fed has created to save the financial system has effectively been sequestered. Because this "money" has not been in the broader system and in the hands of the public, it has not allowed anyone to bid up the price of anything. That is why we have not had a corresponding rise in consumer wages and prices. If government gets into the business of funding direct consumer lenders (like GM buying a finance company), that could all change. But given the public mood, and especially the unemployment rate, will many people want to increase their personal debt? I don't think so. This will frustrate attempts by the Keynesians to "increase aggregate demand" at least for the consumer sector.
Massive liquidity can only create massive inflation when that new money is positioned to allow the holder to bid up prices or wages. If we see that starting to happen, then look out.
The real reason we have 'not seen a rise in consumer prices and wages' is that wages have been stagnant for over 25 years due to off shoring of American jobs. No jobs, no pressure to increase wages, no push-cost inflation of consumer products.
I seriously doubt that we will see inflation adjusted wages increase in our lifetimes.
Consumer necessities, like food, could increase in price due to competition from other countries for those necessities.
Not to worry, it won't show up in the CPI cause it's X food/fuel...lol
Hmm. Let's see ... he needs to shift $3T into the economy in the next 18 months, $1T every six months, as QE2. Let's assume all of that goes into the real economy and not shadow finances (we see how much good the latter that did last time).
Let's say 100 million working Americans qualify for this service, and will take a loan every six months on average, that's 100 million loans from a bucket $1T large. Or about $10,000 per working person per half year.
Yup, I could do some damage with coin like that, and Ben could inject $3T fairly quickly directly into the consumer economy.
Our monetary system is a composite aggregate of currency & debt. Since debt comprises around 99% of the total, actual currency has little or no impact.
The first round of QE was merely used to support the underlying debt backing housing (asset) prices. By Ben's very actions, we can see that he well understands the 99/1 ratio. He maximized the utility of the Fed's excess liquidity by attacking the credit lever in housing via Fannie/Freddie. He didn't waste one iota of his energy trying to get fresh new money into the hands of individuals - it would have had -0- impact.
Ben cannot openly print money from another round of QE because currency in & by itself is absolutely dwarfed by the total credit aggregates. All he would effect would be a 1:1 corresponding price increase ratio to every new dollar printed.
I've seen some quotes around here equating to deflation as the things you own, and inflation as the things you need. Close, but the real explanation is this:
Prices declines are occuring in goods/services sectors backed by debt resulting from contracting credit (deflation). Price increases are occurring in goods/services sectors acquired with money resulting from increasing money supply (inflation). (This takes care of things like food, utilities, gas for the car, etc that might be paid for with a credit card, but the balance is typically paid off on a monthly basis.)
Ben can print till the cows come home, showering everyone with $10k, $100k, $1m per year/quarter/month. All that will happen is a direct escalation in prices of assets not backed by debt. Price increases for items backed by debt will not resume/recur until there is an underlying organic demand for credit (inflation). That is, the so-called final (ie private) demand.
hey man, that's EXACTLY how I explained it!
Deflation is occurring in debt-backed assets, and especially in those that are conjurable at will.
For real assets not easily conjurable, consumables, there is no concomitant deflation. There can't be because those tend to be real assets.
Would you care to explain this?
"CBC News reports Loblaw seeing price deflation
You do realize this CBC article talks about a Canadian grocer and the price deflation happening in Canada, right?
+1
and why I can't take gold bubble talk seriously. Where the hell is the massive apparatus of debt used to push up gold prices? Where are the FHA, FNM, and FRE for gold, to say nothing of thousands of other .gov-created props and inflation conduits? To the contrary, it's at the bottom of a pyramid scheme in which the layers above it consist of buying and selling many multiples of what actually exists.
The goldbugs would suggest there's a massive apparatus of debt being used to push down gold prices. Gold is the quintessential engineered and manufactured good.
Massive amounts of engineering labour has been procured from overseas by the government, through the H1-B visa program and other offshoring/outsourcing/guest worker schemes, on government credit, to suppress the value of engineering and engineered goods and services in the United States. Gold is just yet another example of this. Once the pyramids of debt start to crumble, the suppression of American engineers' wages will end, along with the suppression of the gold price.
2 points:
1, what you say about H1 is absolutely correct. The whole point of this is to drive "cost cutting" and the purpose behind it is NOT lower costs for consumers, but higher bonuses and payscales for executives. What is ironic is that it is the EXECS who are the fungible commodity labor, the ornamentation. I was on a contract at a private-sector company and they routinely laid people off for cost reasons despite those people having critical business and domain knowledge. It's all about dollars in the divisions so the VPs can show "results." They honestly, like the bankers, believe that it is THEY who are the essential staff in the company instead of those who have expertise and actually do shit. This is what happens when MBAs run things, they only know numbers and nothing else. So cost down = good performance.
the second point is that gold is NOT a manufactured thing. Manufactured things are conjurable. Ramp up production, run another shift, build another factory. This is the critical distinction between what I call "real" things and credit-driven assets. There is no way gold's production can be ramped up at will. The same is true for oil; this is the essence of Peak Theory.
The earth decides at what rate these things can be produced, not men. When an oil well peaks, that's it, production goes down. Drill another hole, pump harder, it won't matter. You won't get more net BOE out of it. Oil production will prove inelastic to interest rates as will other mined commodities requiring oil to extract (all of them).
As far as houses, which are built in factories, they can rely on economies of scale and the additional unit energy cost at the margin is very low. Additional marginal demand for tulip bulbs in a bubble can be met, for oil and gold, no.
.GOV PayDay Loans
-low interest no colateral
-voter registration while you wait
-on election day cast your vote with our new multi funciton ATMs / AVMs
awesome.....you check out Hacking Democracy
I would define "reasonable for customers" to be 0 percent interest with no timeframe for repayment.
Can I get an Amen????
Blowing bubbles in the eye of the storm.
Someone told me that with the money that was used to bailout the banks, every adult in the US could have received $110,000.
There are no adults left in the US.
(don't trouble yourself -- this is meant to be self-deprecating)
Yep. Our real maturity is shortening faster than our debt maturity.
This is a win-win for Obama. If they're tough about collecting payments they will end up squeezing out private firms that are good at this lucrative (if well run) business (like CSH) or if they are lax about collecting payments they will end up essentially handing out other people's money to the politically favored.
Can't you just feel the community spirit?
Discount window access for crackheads...!
Hell yeah.
We'll have the world's first currency backed fully by wacky waving inflatable arm flailing tube men and crudely painted not so funny plywood cut out folk art.
http://www.facebook.com/video/video.php?v=1075342600762
http://www.youtube.com/watch?v=j9EOjizFxFA
Greater than $600 per loan equals 1099s for everyone! Yay, IRS!
free money and they want to tax it too? the nerve of those people
Great pic........
The thought of the gov't getting involved with this is scary. Logistically, how do they plan on getting the money into people's hands? There is a payday store in every shopping center, which makes it easy to access. Unless the gov't plans on mailing checks to any person who asks for a loan, I don't see how this works.
They should plan on mailing cash! They dont care who gets it. I would like to suggest a $500 Federal Reserve note coupon that come in the weekly mail fliers (you know with the Jiffy Lube oil change coupons and Bathroom remodlers).
You're missing the big picture. The gov will have to hire a gazillion non productive new gov workers to implement this scam
Full employment here we come
the government outlines its plans for establishing what is essentially a payday loan advance business...
This will endear the parasitic class to their benefactors even further...as if receiving net tax refunds every year was not enough...now they get low cost payday loans too...
will the last guy with a job, who pays his bills and tries to save money, please turn out the lights when he leaves.
Just don't ask the kids to do it; it doesn't work.
+10
The lights won't be on.
Quite simple,
Things are very bad.People are getting skinter.Pensions are becoming unaffordable,property is dropping,goods are not selling in large quantities,unemployment grows,etc,
but the markets go up because of the organised crime of the central banks of the world who need the illusion of normality to get away with their crimes.The only real winners on the stockmarkets are the greedy banks who don,t care wether investors win or loose all they want is trades and fees.Pension funds what a great invention, if a bank charges five sixteenths of one per cent every month and then an annual fee as well on billions how can they ever loose.The Government isn,t going going to stop it as they continually borrow money - your money and then tax you to give you your money back,but for every transaction its the fees that keep the fat bankers getting fatter with all that nice traded fiat currency.Stuff your pension with Gold and Silver and you are no good to the banks or the Government.
So now in the richest country of the world we have a situation where the Government issues payday loans - why? - because workers can,t survive on what they are paid,and the corporations get richer by paying them less in real terms and not content with that they produce abroad because although they are based in the US they sell that country down the river and the consumers they want to sell to can,t consume because they don,t earn enough.What a bloody mess.
I continually have to pound this meme to idiots: made in China <> cheaper for you.
I bought one of the last DeLonghi radiators made in Italy. The next time I saw them they were made in china but listed at the SAME PRICE. Prices never went down on account of China. I have cellphones, one model made in Japan, next newer model in the same line, made in China, no price drop.
The profits of outsourcing went to executives for cutting costs. There was NO dividend for the country. That is precisely how the executive class pay multiples went ballistic while real ordinary wages have gone down. They gutted our entire production base for their OWN profit and their cronies in the pensions and mooch funds NEVER forced them to disgorge these profits to the OWNERS of the company (shareholders). They let the exec class essentially STEAL America.
Now these companies are going to shit, nobody can afford their products because NOBODY here shares in the profits of the company! We have these vast conglomerates producing machinery and stuff for the world, say Caterpillar or something. WTF is their dividend versus how has their executive payscale grown?
THAT is where all the money went. We have been robbed blind by everyone while we were dreaming of .com ponzi jackpots. Even so-called robber barons like Henry Ford weren't this stupid.
Catepillar, Coca Cola, GM, Ford, you name em...Most of their production and sales are abroad, not in America.
...and the working stiff picks up the tab for the military to protect the multi national conglomerates...most of them pay little or no US taxes... good deal if you can get it.
Time to try trickle up economics. Andrew Carnegie used his fortune to start municipal libraries. That model has been adapted to bike and automobile rental. Money could be rented the same way.
Many years ago, Robert Reich proposed finding people without a primary source of income. If they are contributing to their community, coaching, volunteering at a hospital, school, nursing home, park system, they could be reimbursed with money, true trickle up economics.
Greenspan's idea was that after all jobs are shipped offshore, people can retrain in health sciences. I bet the unemployment offices around the US can tell Obama how well that paper chase is going. Simply picking up the telephone and calling someone about a job does NOT count for looking for work. There has to be on-paper contact. I wonder how many trees have been killed since the Bush tax cuts for the wealthy did NOT produce jobs? The overwhelmed state workers at the unemployment offices are probably the people Obama is listening to.
Andrew Carnegie used his fortune to start municipal libraries.
...and once the Left got their hands on municipal governments libraries became jobs and benefits programs for public employees at the expense of what no doubt noble goals Carnegie thought public libraries should serve. At this point most Americans are functionally illiterate/innumerate and the only municipal libraries that aren't in danger of being shuttered are ones that function as de facto daycare centers for bums. I'd say that good deed has been well punished.
I can't wait until ACORN is charged with deciding whose community credentials are worthy enough to qualify for other people's money.
Everything the government touches turns to shit. Everything.
mercury, methinks you should take that line of thinking (which i personally agree with) and work it full circle until you get to the point that sir andrew originally intended it for.
there, you might find an answer. not THE answer, but an answer. and one answer is much better than what we have now.
Well, among the few rays of light that penetrate through this whole shitshow is that as centralized storehouses of knowledge, wisdom, learning and culture rapidly decay or morph into entertainment utilities (universities, cultural institutions, public libraries) the the simultaneous rise of quality, focused, distributed content (over the Internet mainly) proceeds at a size and scope that is just staggering. Yeah there's some crap on Wikipedia and ZeroHedge falls for some tall tale every now and again but the point is that there is this embarrassment of resources out there for every sub-genre/specialty and field of inquiry you can possibly imagine.
So, there's that...
Time to try trickle up economics. Andrew Carnegie used his fortune to start municipal libraries.
Carnegie was a very rich man who voluntarily chose to use his money as he saw fit. How is that "trickle up economics?"
Here's what is happening to the government subsidized Carnegie library today:
The library was better funded when taxes were even lower on the rich than they are with the evil Bush tax cuts and a rich man could chose how to use his own money.
The very fact that Carnegie had that "money"
to give away is because he had sold his assets--his
steel empire (to J. P. Morgan, if memory serves).
The moment of this sale has been taken as a
major turning point in the development of
the capitalist system--from the dominance of
industrial capital to the dominance of finance capital.
What we are living through today seems to
me to be the dominance of finance capital not
so much for genuine development so much as
notional or virtual "growth" (the whole derivatives
thing). Or something like that.
Speaking of loans, seems government drugs kept banks going as well as killed at least 22,000 people...
http://www.globalresearch.ca/index.php?context=va&aid=20210
the dark underbelly is always the place to find the keystone of that which covers the apparent surface...excellent find.
They just looking for a cut.
"Get to tha choppa!"
Payday loans of any stripe are a bad idea, but if the gub is truly interested in stimulating the economy, why not give direct non-dischargeable signature loans to pay off existing credit card balances? The gub could charge a much lower rate since the loan couldn't be discharged, yet the savings in interest alone could help stimulate...gold sales, at least.
The gov tried this tact when the credit crunch hit...remember the tax rebate checks?
The gov wanted people to spend those rebate checks on consumer items but instead most of it was used to pay down accumulated consumer debt...which is deflationary.
The gov is looking for a way to put money into the hands of consumers that cannot be used to pay down accumulated debt. Send your ideas for same to Fed Reserve/Treasury.
Does Modern Money Theory (MMT) advocated by Warren Mosler (go check out the discussion at http://moslereconomics.com for yourself) seem so crazy now? Frankly, I think its alot better than this fucking insanity of so-called *government* loan officers actually being political commissars. At least in MMT, everyone who wants to work gets a job rather than this political motivated bullshit here.
"In ordinary circumstances, monetary policy exerts its stimulative impact in part through increasing the financial wealth of the public — such as producing capital gains in bond and equity markets. If, at the zero bound, the Federal Reserve had already taken what actions it could to raise bond and equity prices, it might look to other tools it has to increase the public’s wealth. One tool ... is that of conducting “money rains”...that is, *GIVE* money away either through directly disbursing currency to the public or by disbursing it through the banking system."
Who would say such a silly thing?
Ben Bernanke, “Monetary Policy When the Nominal Short-Term Interest Rate is Zero” (2005)
Welcome to Monetary Rains! I sure hope my bucket is big enough.
Economists revel in trying risk out the known unknowns, but never count on the unknown unknowns, and this is why they fail.
"I found no paper trumprting economists ability to produce reliabIle projections. So I revierwed what articles and working papers in economics I could find. They collectively show no convincing evidence that economists as a community have an ability to predict ... better than random ones.
Economics is the most insular field; it is the one that qoutes least from outside itself! Economics is perhaps the subject that currently has the highest number of philistine scholars- scholarship without erudition and natural curiosity can close your mind and lead to the fragmentation of disciplines."
From pages 155-6 of "The Black Swan" by Taleb
let's say he does that...what will the effects be?
OK, so they'll rain money on the poor like Reich wants. How do the poor become rich? How would they...hmm...by SAVING, gfdit!
So if the GOAL is to make the poor richer, the poor will have to AVOID SPENDING. That's diametrically opposite the goal of the program!
If the poor DO spend, who is going to end up with the profits? Oh yeah, the rich again. So, they'll go to this or that company that has a fucking 2 year RAISE FREEZE in effect and buy a bunch of products or services...and the executives will say "look at me look at me, my division made gangbusters profits, BONUS ME."
Will these companies turn around and thaw the raises? HELL NO. They NEVER DO anymore. They'll turn and CUT THEM MORE. The executives, OTOH, will gain again and again and again.
At this point, America is dysfunctional. There IS no solution other than a COMPLETE overhaul of our system from top to bottom. That means shareholders or their proxies essentially have to storm board meetings with guns and say YOU get the fuck out of here, WE own this bitch. And then massively CUT the payscales of executives and raise the workers' pay.
That is the ONLY WAY this money rain will work...it CANNOT go to pathologically poor people, it must be rained on those the administration does NOT find political favor from and those people will...drum roll...SAVE IT. Because they're not fucking stupid and they can do basic math.
It's a rare person who takes a tumble like the middle class has in the US and goes boldly out and levers up and starts spending like the drunk again. The only way this can occur is if the money has BUILT IN expiration in it. And such a thing is by DEFINITION hyperinflative. Short-term time decay of money is weimar.
David Chapelle and his writers on the Chapelle Show thought they were writing stoner TV comedy, little did they know a future culture would stumble upon their scripts and turn it into a global cult religion.
http://www.comedycentral.com/videos/index.jhtml?title=reparations-2003&videoId=24406
Little did the cult worshippers know, but Chapelle still roams the earth, baked out of his damn mind, muttering about "it was just a skit, it was just a skit" while avoiding the cash for clunker Escalades barreling down the back alleys.
As for me, I'm buying shares in Cadillac, KFC, InBev and Apple....
David Chapelle and his writers on the Chapelle Show thought they were writing stoner TV comedy, little did they know a future culture would stumble upon their scripts and turn it into a global cult religion.
http://www.comedycentral.com/videos/index.jhtml?title=reparations-2003&videoId=24406
http://www.comedycentral.com/videos/index.jhtml?title=more-reparations&videoId=24407
Little did the cult worshippers know, but Chapelle still roams the earth, baked out of his damn mind, muttering about "it was just a skit, it was just a skit" while avoiding the cash for clunker Escalades barreling down the back alleys.
As for me, I'm buying shares in Cadillac, KFC, InBev and Apple....
+1... and, if the poor save the 'money rain' or use it to pay down accumulated debt their action is deflationary. Every time a debt is retired that money disappears from the banking system. Opposite of what the Fecal Reserve wants.
they can just work off their debt in the obamacorps civilitary.
do i have to go if i've been elected mayor of my obamaville?
everybody, karl marx's grave is empty.
he has risen...he has risen
the capitalists are morphing into socialists
god bless everybody except giovanni the butcher. i ask for 200 grams and he gives me 300 all the time. no fucking way that's-a mistake, giovanni.
don't you know capitalism is finished, giovanni. mankind has learned what capitalism provide and now mankind can provide without capitalism like the church teach compassion but we don't need the church no more.
The "Government" isn't going to be handing out cash to anyone except friends of the party.
They're too desperate for cash.
Ben and the CONgress flailing their arms, even as the deflation quicksand pulls them in deeper.
With the caveat that I don't think Benron is going to "print" in any meaningful way (he can't really - the USD is the only product he has and massive printing == the banks lose and the banks never lose) - this is just a bone tossed to Obama Primary Voters to keep them in line for a couple more months (remember "I'm not gonna haf ta put gas in my car, I'm not gonna haf to pay my mortgage..."?)...
I have this vision of Benron as a modern-day Lt. Colonel Bill Kilgore (how appropriate is that name) - sitting back in his chopper, full to bursting with freshly printed FRNs, the ink still drying on the new script, speakers, hung off the outside of the chopper, blasting germanic opera with the amps pegged to 11, puffing on a Cuban, turning to Turbo Timmy - who is wetting his own pants in the chair next to The Beard - and saying "We use Wagner. It scares the shit out of the Goldbugs. My boys love it!"
Victory.
And I don't want any of your negative waves Moriarity.
Woof woof! Woof woof!
That's my other dog impression.
FRank, dODD bill. FRODD
Rank Fraud.
Ought to help cash strapped crack dealers.
Let's see you sling rock and make change all damn day for bankster chumps with yuppie foodstamps that only want that 3p EST boost, yo.
Damn, make a nigga sweat and shit.
That's cold!
Take the loan, buy gold and silver coins and repay after the price doubles.
that's right out of the "dream on" campaign
administered by the folks at gubbermint motors no doubt.
http://finance.yahoo.com/news/GM-takes-on-subprime-car-apf-507453632.html?x=0&sec=topStories&pos=main&asset=&ccode=
I have a Barry Bonds Topps rookie card I'm willing to trade or use as collateral for a $50,000 government backed loan at 0.001%. I will promise to use this money to buy government bonds. For a cool $100,000, I will throw in an IOU for $62 from my uncle Mac.
I have looked all over Craigslist and at bazaars and yardsales and have found no information on this paperwork on this program.
"That's as good as money, those are IOUs."
http://www.youtube.com/watch?v=7GSXbgfKFWg&videos=8-Nstx9BM_w
I'll take a meal ticket.
This is from the Zimbabwe Government playbook of vote buying. Acorn will distribute the cash. Bring your voter registration card.
Psheee, like Tyrants care about registration cards, or voting for that matter.
I just took a dump, but it was a really righteous one. Can I pledge that as collateral?
Pictures?
A narrative as to the origins, consistency, and general odor of the ass-ett in question?
What would Moody's think of your dump?
How would it compare to their 'ratings'?
How many FRNs would you like for it?
The TOO CROOKED TO FAIL banks CAN"T lend because they are bankrupt...
The Hank&Ben propagandized that they just wouldn't ever let our banks be socialized while they set us all up for the biggest lie and bank heist of all time starting in the fall of 2008.
If there was even an ounce of integrity in any of our elected officials we would have been told the truth, and apology for the laws that enabled the banking cartel, and a promise to correct and do right in the future, and in the mean time, a TEMPORARY socialization of MER, GS, MS, and C (maybe a few other original tarp recipients) and this is the only right thing to do so we don't have to spend taxpayer money til infinity to pass out money to bankrupt entities all in the name of their so called "vital" role in our lives..... and this way we wouldn't have to continue to pay interest on the money that these entities borrow for nothing, buy treasuries, and also get paid 6% on every 1% of the bloated reserves plus the very special 0.25% on the excess reserves--and since all the balance sheets of these entities are fiction, it is more thievery...
It is indeed a farce for the gov to do this after the trillions of money that has disappeared onto the FED never to be accounted for since we have ZERO, ZILCH, NADA transparency and truth from the cartel.
Yeah, but the payday loan shop expects to get paid back from your paycheck.... Ben won't require a paycheck or repayment....
Yeah, The Feral should just mail everyone "Uncle Ben's Magic Check Book". Everyone has an account number, adn when you sign your name, you agree to the loan...b ut you can use the magic check book to make payments. And buy more checks. OH MAN! I was just typing randomly, but I think I'm onto something here. It would be like a perpetual motion machine. What could possibly go wrong?
couldn't slog through the 2315 pages yet still interested? try this summation:
http://www.youtube.com/watch?v=0ZObHXWbWlk&feature=player_embedded
I would like to borrow $100 million American dollars...please. I promise to pay it back. You can load it into the back of my truck right outside.
Bwahahaha!
They're kidding...right?
Frankly Tora, I would trust you more than anyone in the Gov or at GS, Fanny, Freddie, or the FED. We've got a better chance that you would do something productive with it.
Finally, I can reverse repo my house to the fed for what I bought it for.