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Posts Tagged ‘profits’

No Double Payment; No Bailout

Posted by Reed on Tuesday, September 30, 2008

The citizens of the world, including those of USA and England, are being asked to pay for their houses, automobile and education loans twice. Meanwhile, the bail out lets financial institutions take the money for themselves. Let these financial businesses “eat their own dog food.” Say no to any bailout. Only a bridge of loans, to facilitate liquidity, under strict retail interest rate controls until these loans are paid back from business profits and not from retail customer who is paying their bills/loans. Businesses took the profits and accepted risk associated with those profits. Now they need to accept, acknowledge and pay for loan risks that have gone bad. (Majority of loans made in world are current and good.)

There are many possible variations of loaning cash until central banks are repaid, the citizens, the taxpayers are repaid. Exact model is not important. It is important that entire cost be borne by businesses who accepted risk and accepted profits.

No to double payment by Main Street. Yes, to businesses accepting risk they agreed to.

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