Posted on December 30, 2011 by Neil Garfield
ARE WE GOING TO GIVE THE BANKS ANOTHER $16 TRILLION?
Between TARP (only $700 Billion) and the FED bailouts ($16 TRILLION) the Banks have already received from all of us enough money to pay off every mortgage, credit card, student loan, auto loan and every other kind of debt allegedly owed to them. And yet, we are told we still owe them the money. If we owe anyone, it is the Federal government and the General Accounting Office should figure out who we pay and how much. It certainly does not seem right that we should pay the $16 TRILLION all over again when the banks have already received the money.
Now add approximately $15 TRILLION that was made in “trading” some of which was booked as principal so it didn’t count as taxable profits, and you may get what I am saying here. If you add all the debt of all Americans to all the banks that received the bailout money, they have already been paid twice over, at a minimum. We are still told that we should pay on those paid debts — payable to the Banks. For those of you counting, that would be the THIRD time the debt is paid. I say they have already been paid. I say the money should go to the Federal government.
What would happen? Well, the government could figure out if any of that money truly should go to the banks and then give them their fair share if there is any fair share. The rest clears up the deficit and provides enough stimulus dollars to shock our recumbent economy into renewed life. Once a full and fair accounting is done, the investors who lost money could be repaid with interest up to the point that the borrowers have borrowed money. The Banks will scream at that because the amount of borrowed money does not equal the total owed to the investors. The amount borrowed is far less than the amount loaned, because the banks siphoned off some 30%of the investors’ money in “fees” and “trading profits.”
The money that was NOT loaned to borrowers is not the borrowers’ problem. The Banks need to take care of that with the money they stuffed into off-shore accounts. The money that has been paid to the investors is also not a problem anymore to the borrowers because the creditor has already been paid — directly or indirectly. That leaves some sort of balance owed by borrowers, which by quick estimates would be around 1/3-1/2 of the amount they borrowed. THAT would reduce the amount due on each debt to a manageable and payable size. Allowing for a fair interest rate of around 3% would clear the decks immediately and boost consumer wealth and confidence sufficient for decades to come.
None of this will happen of course unless there is a paradigm shift from doing what is best for the Banks to doing what is best for the country. It just so happens that it also shifts back to the rule of law. Anyone who has borrowed $100 from Joe, which was paid off by his Aunt Sally knows that if he pays anyone it is going to be Aunt Sally. You are not going to pay Joe AGAIN on the same debt. Or are you?
So there is the question: after all the money we gave to the Banks, why would we pay them again on the same debts that they SAID they lost so much money on? Are we going to give them the whole $16 TRILLION AGAIN? When will people stop beating themselves up about a debt they owe and start questioning why they are paying the same debt multiple times? Why is there a difference between paying the debt as a taxpayer and paying the debt as a borrower? Isn’t it immoral to collect on the same debt multiple times? Isn’t that the true moral question?