Searchlight Innovations Inc T.SLX

RE: RE: RE: RE: RE: Emotions

[JoeKool]

Interesting dialogue here. The chart shows just how out of control the federal debt is. With foreigners curtailing their purchases of US treasurys, who is picking up the slack? Why, the banks of course. The feds have increased the money supply but the majority of those $ have not made it into the system because the banks, instead of lending to consumers who may or may not go financially belly up causing the banks to lose money, are buying up treasurys hand over fist as they're guaranteed to make money. There's no risk to them versus lending to consumers. They borrow from the fed at next to zero % and buy treasurys paying 1-4% (depending on maturity). The spread is making them billions and the more foreigners bail buying of treasurys, the more the fed will need the primary dealers to buy them. In this instance, would you lend money to an over extended consumer who may default or the US Treasury where you're guaranteed to make $ (yes, we know they're getting paid back in depreciating $, but they get 100% of it paid back)