Tag: the federal reserve

Kucinich: ‘Is the Fed paying banks not to loan money?’

In these insane years, the only people making sense, and the only people with what appears to be what used to be called “common sense” are those who are now labelled “extreme left”.   You know, Democracy Now, Dennis Kucinich, etc.

Well, Kucinich now can’t help but wonder if the Federal Reserve isn’t paying banks to NOT make loans.

It makes a lot of sense.

http://rawstory.com/08/news/20…


Ohio Democratic Congressman Dennis Kucinich wants to know: “If [the Troubled Asset Relief Program] isn’t about keeping people in their homes or providing credit to businesses, what is it for?”

Expressing his frustration before the Government and Oversight Committee, the two-time presidential candidate suggested that the Federal Reserve may be paying banks to hoard money and avoid making loans.

Banks make loans in order to make money.   If they don’t make loans, then what are they in business for?   Why would they quit making loans?