What is it that I’m missing here? Let’s see, the government is borrowing money in the markets at as low a rate as .01% (yes, no mistake on the decimal point) and have provided banks with funding at 8% on over $700 billion. Now if you take the spread which is the difference at what the funding costs and what is being earned, on that amount of money the interest alone is over $55 billion per year. Some of that money has been paid back to the government by the banks – to the detriment of the taxpayer! We as taxpayers have been making out like bandits by getting the spread, at a cost to the banks. Yet, President Obama continues to say that the banks were bailed out. Go figure!
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