Krontak

According to Republicans, socialization is bad, until private banks are in trouble, then the need to socialize becomes a necessity.

Banks borrow more from Fed; Wall Street takes pass: Financial News - Yahoo! Finance

Here's the thing that really pissed me off about this. The $18.9 billion borrowed a day is bad enough but that isn't what really gets me. Banks are getting a 2.5% loan rate. I want a fucking 2.5% loan rate on my house loan. Why the fuck should they get this privilege and not Americans. Exactly what did we do wrong to not get treated the same.

Fuck the hypocrisy.

Daedalus

Because banks usually are borrowing that to make sure that they meet their reserve requirement, not borrowing it so that they can pay off a house.

Slightly less risk there too.

Deson

Krontak, what do you know about the Great Depression?

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Krontak

I know that Phil Gramm removed some of the regulation put in place back then that is causing some of the mess today, but other than that. ummm

25% unemployment. People jumping off buildings. Social programs started up back then.

Deson

It wasn't just Gramm and Bill signed it into law. Road to hell blah blah blah. In short though, the market crashed, people got scared and made a run on the banks. The country failed to appreciate what could happen and thought it would fix itself and failed to shore up the banks with influxes of cash. What you are seeing now is the Fed trying to act to never repeat that mistake again and shoring up the banks indirectly helps the average American in ways that are hard to appreciate.

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Krontak

Deson,

I understand what is happening now is necessary. But, like I mentioned the hypocrisy pisses me off to no end. I want a loan of %2.5 on my home. Exactly what did I do wrong to not have the same privilege. The banks failed betting on our loans. The stock market is after all just a big betting market for people with lots of cash and the banks were betting on home loans. The banks are now getting the low loans so they don't crash, why not help the little guy out too so they don't crash and foreclose is all I ask.

Deson

The problem with those institutions is why I mentioned the depression. You can't let them fail;it's not like the Fed or the Treasury really want to give them the money, it's that if they don't you get fucked worse than not getting a 2.5% loan. As far as you(general little guy), in most cases of failures people took gambles they shouldn't have and got burned. Should some people get relief? Yes, but the moral comparison in this case just doesn't hold.

It's hard to explain and I understand how you feel but it's not so much hypocrisy in this case as just plain necessity.

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Daedalus

Simple economics, Krontak.

If loans were available to everyone at 2.5%, everyone would have massive loans out. The economy would then just adjust to that much money being out there, massive inflation would occur, blah, blah, blah, so on and so forth.

Supply and demand in the money market aren't difficult topics to learn about, so I'd suggest reading up a little bit on them first.

Krontak

Dae. Which question of mine or response are you responding to? I had like 3 different posts.

Daedalus

The one(s) where you were complaining about banks not giving low interest rate loans to everyone.