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Why Tim Geithner is afraid of Elizabeth Warren
Topic Started: Jul 19 2010, 04:09 AM (277 Views)
Axtremus
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HOLY CARP!!!
Article: http://www.huffingtonpost.com/john-r-talbott/the-real-reason-geithner_b_650403.html

:shrug:
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garrett2
Junior Carp
Quote:
 
banks can profit enormously by doing almost nothing, not lending and sitting on risk free Treasury investments.

:lol2:

That has to be one of the silliest things I've heard all day.
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Steve Miller
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Bull-Carp
Quote:
 
That has to be one of the silliest things I've heard all day.

How so?
Wag more
Bark less
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garrett2
Junior Carp
Steve Miller
Jul 19 2010, 06:53 PM
How so?
Treasury notes are generally used for liquidity reasons. The closing rate, at the end of today, for a 12 month note was 0.28%. If a company invested $1 billion in 12 month treasury notes, the pay-out would be 280k. If a Financial Institution with $1 billion in deposits were to invest everything it had in 12 month treasury notes (not that they would be able to invest everything) they would need a minimum of 100 employees (realistically this number would be much higher, probably 200 employees). 100 employees being paid a total sum of 280k, would be an average yearly salary of $2,800 per employee.
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Axtremus
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HOLY CARP!!!
Follow up: http://www.huffingtonpost.com/2010/07/19/elizabeth-warren-could-he_n_651759.html
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