Tuesday, January 27, 2009

Perfect Heist?

Thanks to Scott for this Guatemala Times article which reveals the fate of Guatemala's own late 2008 banking sector stimulus package:

"Guatemala's private banks got a stimulus package from Banco de Guatemala in November and December last year...Not the same amount of money, but with the same goal, to increase liquidity in the system and subsequently the private banks would then give loans to businesses and people to keep the economy going....

"What did the private banks in Guatemala do? They received the money from the government, but they are not giving credits to people or businesses; they invested the money back into Banco de Guatemala to get a secure return of 7.25 % of interest."

Sound familiar?

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