We said in an earlier email how – back in September 2008 – former Goldman Sachs CEO Hank “Tanks in the Street, Mr. President” Paulson, threatened pressured Bush to sign the $700 Billion TARP law.
It was supposed to “Calm the markets.”
And it’s eerily similar to how the Fed today announced “emergency measures to combat the economic impact of the Kung Flu” by creating an unprecedented Primary Market Corporate Credit Facility (PMCCF).
This is supposed to “…limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate.” (According to Fed Chairman Powell)
This won’t fix the problem…just like Paulson’s $700 Billion TARP plan didn’t fix the problem back then.
If you aren’t aware, the TARP bill was THREE PAGES LONG. THREE.
And it gave Paulson unrestricted use of how to allocate the $700Billion.
Instead of using the money to “help the public,” banksters like Paulson bailed out his cronies at Goldman Sachs and other members of the “Club.”
This eventually opened the floodgates at the FED to bail out the banksters to the tune of over $9 TRILLION.
It’s no different today, which is why I can’t believe this “Emergency Measures” will fix the current problems.
What needs to be done is that the president puts a moratorium on mortgage payments for at least 6 to 9 months.
Think for a minute. The vast majority of people who are now out of work will soon freak out over the possibility of not making their mortgage payment.
A moratorium on mortgages will not only restore confidence, it will give people hope to a frightened nation that they won’t lose their home.
This, in effect would quicken the chances of economic recovery.
In addition, the banks won’t be faced with massive foreclosures (like in 2008) further crippling their balance sheet and causing more meltdowns in the banking sector.
This is just one idea that would help take the panic level down a notch or three…which is critical at this stage of the game.
When the bread winners can’t put food on the table and are threatened with losing their homes, things will get ugly very quickly.
This will also keep the banksters from stealing most of the money for themselves.
Be sure to read or April newsletter where you learn how to prosper AND thrive in these Turbulent Times.