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Fix income inequality with $10 million loans for everyone!

By Sheila Bair, Washington Post

Are you concerned about growing income inequality in America? Are you resentful of all that wealth concentrated in the 1 percent? I’ve got the perfect solution, a modest proposal that involves just a small adjustment in the Federal Reserve’s easy monetary policy. Best of all, it will mean that none of us have to work for a living anymore.

For several years now, the Fed has been making money available to the financial sector at near-zero interest rates. Big banks and hedge funds, among others, have taken this cheap money and invested it in securities with high yields. This type of profit-making, called the “carry trade,” has been enormously profitable for them.

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.

Of course, we will have to persuade Congress to pass a law authorizing all this Fed lending, but that shouldn’t be hard. Congress is really good at spending money, so long as lawmakers don’t have to come up with a way to pay for it. Just look at the way the Democrats agreed to extend the Bush tax cuts if the Republicans agreed to cut Social Security taxes and extend unemployment benefits. Who says bipartisanship is dead?

Read more:

http://www.washingtonpost.com/opinions/fix-income-inequality...

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Brilliant!!

I want to start my own college. I need people to teach F.A. Hayek, Von Mises, and some algebra. While we are at it, does anyone still know how to write besides this guy?

I Like It.

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BUMP

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Sounds pretty lame.

Lets just loan people real loans, with gold/silver their choice on the market. Competing currency. http://www.campaignforliberty.com

If they want FRN's they can request those on demand. They are air.

Lol went right over your head..

The entire thing is clearly mocking the system, showing how absurd allowing certain individuals to "create wealth" by printing money is.

Haha thought this was brilliantly done...

Author made such great use of sarcasm to show how ridiculous the whole thing really is.