Tuesday, September 15, 2009

Real News Video: Lehman legacy and the predator state

Galbraith: One year later, banks making profits with public cash without lending in public's interest

More at The Real News

"It has been 365 days since Lehman Brothers collapsed, triggering a global economic crisis whose effects are only now being truly felt. The events set off an unprecedented set of actions by the US government, but these actions have still yet to see any new regulations for Wall St. Reports indicate that banks are back to major profits, but economist James K. Galbraith points out that this is not the same kind of profits as banks were making before the crisis. With the collapse of the inflated home market, banks are now reaping profits through public money that is being offered to them at little to no interest through the Federal Reserve, money that they turn around and invest in government bonds, creating a public money machine for the banking sector. Despite all this public funding, says Galbraith, banks are continuing to avoid lending in the public's interest."

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