... the governments are issuing gigantic amounts of debt to bail out the banks.
The banks are making money levering up this debt, so it looks like there’s no more problem in the financial system.
So to reduce the debt of governments, we should tax the banks’ balance sheet, which have ballooned as the banks bought government debt with zero-interest financing from the government, and made lots of profits…Seems a cumbersome way to proceed.
Why pay all these people to sit on a trading floor?
It would be simpler to have the Treasury and Fed buy government securities back and forth from each other at higher prices each time, booking a profit on the trade at each turn.
In a few months, they would have so much profits that they could pay back the whole federal debt!
IT'S ANOTHER HOUSE OF CARDS. A POTEMKIN HOUSE OF CARDS - IF I CAN MIX METAPHORS!
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