If you pay attention to business news lately you may have noticed that whenever auctions for Government Bonds in Greece, Italy, and now also Spain, reach a 6.5% - 7% interest rate ( the rate increases to appeal to reticent investors...) it is met with hysterical warnings that these economies are approaching an untenable situation. (Let's ignore the fact that their situation probably is already untenable, and that Banks are borrowing billions from Central Banks at near 0% interest rates to buy these bonds - all in an attempt to save the collective balance sheet of the entire Banking Sector...)
My simple question is this: how can banks charge ordinary customers 9%-24% interest rates when 7% is considered too much for a Nation to carry?
1 comment:
ONLY LITTLE PEOPLE HAVE TO PAY INTEREST.
AND IF YOU'RE REALLY BIG, THEN YOUR GOVT PALS BAIL YOU OUT.
THIS IS ALL BECAUSE GOVT'S ARE TOO BIG AND POLITICIANS TOO POWERFUL.
WITHOUT THEIR PALS IN GOVT, CORPORATIONS COULDN'T RIDE ROUGHSHOD OVER THE REST OF US.
THEY'D HAVE TO RESPOND TO THE FREE MARKETPLACE AND COMPETE.
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