Comments on: Europe borrows from Peter to lend to Peter http://blogs.reuters.com/great-debate/2009/07/28/europe-borrows-from-peter-to-lend-to-peter/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Sanoran Triamesh http://blogs.reuters.com/great-debate/2009/07/28/europe-borrows-from-peter-to-lend-to-peter/#comment-19945 Mon, 03 Aug 2009 00:26:45 +0000 http://blogs.reuters.com/great-debate/?p=4640#comment-19945 Banks are really in a sweet spot! Credit has become the way of life for people as well as for governments. It is like an addiction. A small town in Virginia wants to build a bridge and has no money…. it borrows money and pays interest. The elected official looks good. Everyone is happy. Loans come due, … and they borrow some more to pay the current dues! And the banks make a handsome profit pushing paper. But when this game of musical chair was about to collapse, the governments show their love for Marx by printing money (thereby taxing the savers via inflation) to bail out the banks so that the musical chair can continue. Until the next time. In the US, GoldmanSachs gambled with AIG, and Treasury Secretary Paulson (ex-GoldmanSachs honcho) gave tax money to AIG to save his friends at GoldmanSachs. He claimed that if AIG failed then all the whole world would collapse. Apparently we are all so addicted to credit that killing the drug-dealer now will kill us! So we are now subsidizing the drug-dealers. And we are still capitalist! Marx must be laughing in his grave.

]]>
By: VJ http://blogs.reuters.com/great-debate/2009/07/28/europe-borrows-from-peter-to-lend-to-peter/#comment-19938 Sun, 02 Aug 2009 14:11:04 +0000 http://blogs.reuters.com/great-debate/?p=4640#comment-19938 It seem to be a dumbest idea. Either Governments are stupid or banks think they are smart and people and even more dumber. Where does it say that lending money to banks at cheap rate so they invest in the Government bonds and pay higher rate is like giving banks bonus for just paperwork. They would same money not to do anything or lend it directly or even through the so called post offices( Post offices are owned by the government and could literally be banks for saving account as well as lender and they are more trustworthy than banking sector which of lately has proven to be not trustworthy and all the profits will go to the government. Unfortunately only problem is that it will push the ideology to either Marxism or fascism which is not accepted under democratic principles. That is the “catch 22″ part as we well know that both of the above ideologies have proven to be failure and current system of greed accompanied by power is the last of the system of free market, or in other words choosing between donkey and ass which makes it a very difficult choice.

]]>
By: Johnson Revnik http://blogs.reuters.com/great-debate/2009/07/28/europe-borrows-from-peter-to-lend-to-peter/#comment-19722 Wed, 29 Jul 2009 12:12:13 +0000 http://blogs.reuters.com/great-debate/?p=4640#comment-19722 How is this practice any different from the QE used by the Bank of England and the Federal Reserve. Surely the ECB is just stoking up inflation down the line by underwriting the unproductive public sector

]]>
By: peter mitchell http://blogs.reuters.com/great-debate/2009/07/28/europe-borrows-from-peter-to-lend-to-peter/#comment-19720 Wed, 29 Jul 2009 08:43:15 +0000 http://blogs.reuters.com/great-debate/?p=4640#comment-19720 looks like the europeans are printing money to fill up the banks so their assets cover bad debts, that have still to make there way onto their bottom line. As they are not lending it to anyone or each other. If they print enough maybe soon we will have a splurge of bank takeovers and investments rather than loans to small business and joe the plumber to buy his home. Methinks! this will only strangle economies and restrict trade due to constrained cashflows. Here we go again another type of credit crisis.

]]>