Why should just banks have all the fun? Former FDIC Chair Sheila Bair proposes EVERYONE get access to the Fed window for free loans and 0% money.
Her gleeful take:
“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.)
Think of what we can do with all that money. We can pay off our underwater mortgages and replenish our retirement accounts without spending one day schlepping into the office. With a few quick keystrokes, we’ll be golden for the next 10 years.”
I had no idea Shelia Bair had such a wonderfully wicked sense of humor!
Fix income inequality with $10 million loans for everyone!
Washington Post April 13, 2012