Shelia Bair | Fix Income Inequality with $10 Million Loans for Everyone!

Fix income inequality with $10 million loans for everyone!

By Sheila Bair

Are you concerned about growing income inequality in America? Are you resentful of all that wealth concentrated in the 1 percent? I’ve got the perfect solution, a modest proposal that involves just a small adjustment in the Federal Reserve’s easy monetary policy. Best of all, it will mean that none of us have to work for a living anymore.

For several years now, the Fed has been making money available to the financial sector at near-zero interest rates. Big banks and hedge funds, among others, have taken this cheap money and invested it in securities with high yields. This type of profit-making, called the “carry trade,” has been enormously profitable for them.

So why not let everyone participate?

Under my plan, each American household could borrow $10 million from the Fed at zero interest. The more conservative among us can take that money and buy 10-year Treasury bonds. At the current 2 percent annual interest rate, we can pocket a nice $200,000 a year to live on. The more adventuresome can buy 10-year Greek debt at 21 percent, for an annual income of $2.1 million. Or if Greece is a little too risky for you, go with Portugal, at about 12 percent, or $1.2 million dollars a year. (No sense in getting greedy.)

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2 Responses to “Shelia Bair | Fix Income Inequality with $10 Million Loans for Everyone!”
  1. Bill says:

    I side with “Bloodsoaked” to a large extent, but what really amazes me is that this proposal actually seems equitable to me in light of the events of the last 5 years. Yielding these kinds of loans to the wealthiest entities is actually discrimination. AND, I truly believe a majority of the general Public would invest, (spend) their funds more wisely than the government.

  2. Bloodsoaked says:

    That would be a great fix for America! But where not in this situation because they care about us! THEIR GOAL IS TO DESTROY NOT TO FIX. They could fix our problems like flicking a switch if they wanted to. THEIR REAL GOAL IS ELIMINATION NOT A PROSPEROUS NATION! Doing this thoe is the only logical solution. Because the working Cat is out of the bag. And it is not comming back to America! So we either become investor’s or we are Debt Slave’s. Wich do you think they would rather you be?

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