Date registered: Aug 2002
Vehicle: 2021 SL770
Location: Fountain Hills, AZ
Mentioned: 1 Post(s)
Quoted: 544 Post(s)
A quick explanation of the $700 billion bailout
The taxpayers loan money to the banks. But the taxpayers do not have the money. So we have to borrow it from the banks to give it back to the banks. But the banks do not have the money to loan to the government. So they create it into existence (through a mechanism called fractional reserve) and then loan it to us, at interest, so we can then give it back to them.
"If spending money you don't have is the height of stupidity, borrowing money to give it away is the height of insanity." -- anon