Phil Cannella – Phillip Cannella News
Phil Cannella: “Why didn’t the banks lend money?
They were given $1 trillion. Why did the government depend on it being trickled down? That’s like us giving a thief the keys of our car and say, ‘valet park it for me.’ Why would it be that way? Why wouldn’t these banks lend the money out?”
Andrew Huszar: “Well I think ultimately because they got so much, and this is my opinion, but I think they got so much, they got bailed out in so many different ways, that ultimately they weren’t really forced to confront the implications of what happened.”
Phil Cannella: “It’s kind of like a form of atrophy right?”
Andrew Huszar: “Yeah, it’s business as usual, right? If you mess up and suddenly you don’t deal with the consequences of your mess, why would you change how you’re doing things? So banks kept on doing what they were doing, which was really just worrying about themselves, and so a lot of the cash they got from The Fed, they turned right around and they actually did what a lot of us did, which is that they started investing in the markets, because they figured, if The Fed is pumping this much money into the economy/into Wall Street, it’s going to help the financial markets. So that’s exactly what the banks did, and you know the banks – the big Wall Street banks in particular – the six biggest ones, which are such a huge part of our economy, their business models still aren’t entirely oriented around lending or lending to the U.S. consumer.”
Phil Cannella: “Aren’t some of these big banks also a part of the Federal Government?
Andrew Huszar: “We are in a position where we have big corporations in America and those big corporations have lobbying dollars and have a lot of credibility because they are such an important part of the economy.”
Hear more from the interview with Phil Cannella and Andrew Huszar on The Crash Proof Retirement Show®. Saturdays at 11am and Sundays at 1pm on Talk Radio 1210AM, WPHT!