Is Fed bailout of firms unfair to individuals?
In the Record Bee”s May 1 edition, Page A3 had a story called “Man Struggles to Save his Home.” His interest rate is a whooping 11.5 %, because of his bad credit and low income.
Next day, the Record Bee”s, Friday, May 2 edition had a story on Page A7 called “Investment Firms pull back on Fed Borrowing.” The Feds are loaning “Investment firms” billions of dollars every week at 2.25 % from the Federal Reserve”s emergency lending program.
What”s wrong with this picture? Maybe the investment firms are experiencing bad credit and low income problems so they have to borrow from the Feds?
Maybe the Feds should loan Mr. Thiel of Kelseyville the money he needs at 2.25 % instead of subsidizing those crooks who are charging him over five the interest rate the Feds are giving the investment firms. Five times the interest rate ? that”s a crime in itself.
And who pays for this? All of us, and Mr. Thiel who pays income tax to the Feds, who loans it out at 2.25 % to those who charge him 11.5 %. There ought to be a law.
What can we do? I don”t know but with elections coming up, the word “Incumbent” by a candidate”s name is becoming more significant as voting time nears. Some things definitely need a change.
Norman Michael
Lakeport
