I want a zero interest loan; how do I qualify?

[TheTexan]

So we've got two more years of zero interest loans from the Federal Reserve, right? How can I get one of those?


Federal Reserve Banks do not provide banking services, such as offering deposit accounts or lending money, to consumers. The Federal Reserve provides certain financial services to the U.S. Government, depository institutions, and other financial entities. Visit the Federal Reserve Education website for more information about the Federal Reserve and Federal Reserve Banks.

Can I open a (very) small bank and get these loans? It's not like there's any risk. I'll just take a zero interest loan, and buy a non-zero interest treasury bill.

Rhetorical question, of course. They're not going to give me a loan.

The prime interest rate is 3%. So these big banks, they get zero interest loans, and loan them out at 3%. I want to do that. Easy money. Where do I start.

[torchbearer]

give Ben some head.

[wstrucke]

we should start the ron paul freedom bank

[muh_roads]

we should start the ron paul freedom bank

People were all prepared to invest in BreakTheMatrix back in the day. A Ron Paul Bank would actually work...lol

[kpitcher]

Why bother with a bank and all of the red tape? The morgan stanley banker's wives got 250 million to buy up student loans. The FED is on the hook for any losses, the wives get to keep any profits.

[danbeaulieu]

Zero interest rates? Are you crazy, do you want to form a bubble or something?!

Ah, Ron Paul humor. Only we understand.

[acptulsa]

I need to get bailed out.

Unfortunately, I'm too broke to get a bailout. Because everyone knows you don't get bailed out by the poor taxpayer unless you're rolling in the stuff...

[torchbearer]

oh, and fuck you to the person who flagged my previous post.

[torchbearer]

oh, and fuck you to the person who flagged my previous post.

and fuck the stupid fuck that flagged this post along with the newbs that gave the infract.

Expires 11-26-2011 09:57 PM: I want a zero interest... (http://www.ronpaulforums.com/showthread.php?330735-I-want-a-zero-interest-loan-how-do-I-qualify&p=3751592#post3751592)
Forum Guidelines Violation

11-16-2011 09:16 PM
malkusm (http://www.ronpaulforums.com/member.php?10951-malkusm)

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Forum Guidelines Violation
Nirvikalpa (http://www.ronpaulforums.com/member.php?17238-Nirvikalpa)

never even seen Nirvikalpa on here before. they must be giving out mod positions to people by lottery now.

[torchbearer]

Has violations, am willing to trade for bitcoins.

[TheTexan]

Which is better, gold or bitcoins? Gold is shiny, but you can buy drugs with bitcoins...

[torchbearer]

Which is better, gold or bitcoins? Gold is shiny, but you can buy drugs with bitcoins...

easier to spend bitcoin online.
easier to spend gold offline.
i guess it all depends on where you get your drugs.
of course, the pussy-hurt mods may get offended by the inference of drugs in our post.
you might want to watch what you say.

http://dissociatedpress.com/wp-content/uploads/2010/04/russian-propaganda-387-dont-talk.jpg

[Zippyjuan]

So we've got two more years of zero interest loans from the Federal Reserve, right? How can I get one of those?



Can I open a (very) small bank and get these loans? It's not like there's any risk. I'll just take a zero interest loan, and buy a non-zero interest treasury bill.

Rhetorical question, of course. They're not going to give me a loan.

The prime interest rate is 3%. So these big banks, they get zero interest loans, and loan them out at 3%. I want to do that. Easy money. Where do I start.

You would have to meet certain requirements and buy membership.
http://www.richmondfed.org/faqs/frs/

Member banks must subscribe to stock in their regional Federal Reserve Bank in an amount equal to 6 percent of their capital and surplus, half of which must be paid in while the other half is subject to call by the Board of Governors. The holding of this stock, however, does not carry with it the control and financial interest conveyed to holders of common stock in for-profit organizations. It is merely a legal obligation of Federal Reserve membership, and the stock may not be sold or pledged as collateral for loans. Member banks receive a 6 percent dividend annually on their stock, as specified by law, and vote for the Class A and Class B directors of the Reserve Bank. Stock in Federal Reserve Banks is not available for purchase by individuals or entities other than member banks.

[TheTexan]

You would have to meet certain requirements and buy membership.
http://www.richmondfed.org/faqs/frs/

I'm reading through this: http://www.federalreserve.gov/pf/pdf/pf_3.pdf

And I'm trying to determine the mechanism by which these zero interest loans are handed out. It's either:

1) Securities trading (Open market operations)
2) Discount window lending

You do need to be a member bank to participate in Discount window lending, but that doesn't look like it, because "Beginning in early 2003, rates for discount window loans have been set above prevailing market rates"

It could be Open Market Operations, but it doesn't look like you need to be a member bank. Regarding OMO:

The Federal Reserve Bank of New York conducts open market operations for the Federal Reserve, under an authorization from the Federal Open Market Committee. The group that carries out the operations is commonly referred to as “the Open Market Trading Desk” or “the Desk.” The Desk is permitted by the FOMC’s authorization to conduct business with U.S. securities dealers and with foreign official and international institutions that maintain accounts at the Federal Reserve Bank of New York. The dealers with which the Desk transacts business are called primary dealers. The Federal Reserve requires primary dealers to meet the
37
The Federal Reserve System: Purposes and Functions
capital standards of their primary regulators and satisfy other criteria consistent with being a meaningful and creditworthy counterparty. All open market operations transacted with primary dealers are conducted through an auction process.

This doesn't look like you need to be a member bank. You just need to have an account at NY Fed, meet 'capital standards of their primary regulators' and be 'meaningful and creditworthy'... I wonder what that means, exactly.

[TheTexan]

Here's a list of "Primary Dealers"



Bank of Nova Scotia, New York Agency
BMO Capital Markets Corp.
BNP Paribas Securities Corp.
Barclays Capital Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Goldman, Sachs & Co.
HSBC Securities (USA) Inc.
Jefferies & Company, Inc.
J.P. Morgan Securities LLC
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Mizuho Securities USA Inc.
Morgan Stanley & Co. LLC
Nomura Securities International, Inc.
RBC Capital Markets, LLC
RBS Securities Inc.
SG Americas Securities, LLC
UBS Securities LLC.


Source: http://newyorkfed.org/markets/pridealers_current.html

[emazur]

I have a zero interest loan. Had an expensive car repair last year, put it on a credit card, then transferred it to a promo offer from a different card I already had that offered 0% interests on balance transfers for 12 months. There was a fee of 3% of the balance though. I was planning on transferring the balance back to the original credit card b/c they too are now offering me 0% for 12 months w/ 3% transfer fee. However, I've been getting offers in the mail for a Chase credit card that offers 0% for 12 months AND 0% transfer fee. So that's what I intend to get. This looks to be the same offer:
http://www.dailymarkets.com/creditcards/chase-slate-credit-card-no-balance-transfer-fee-offer/

If you have a good credit rating, companies will compete for your business. I recommend at least 1 credit card each from Discover, American Express, and Visa/MC. Sometimes you get discounts depending on what card you use - depends where you're buying from. And some smaller shops won't take anything besides Discover (low merchant fees, I believe) - until recently my nearest dollar store was like that. I normally pay cash at dollar stores but if I didn't have enough cash on hand the card comes in handy.

[LibForestPaul]

The 0% is definitely locked in for the 12 months? I always wondered if there was some clause about (0% if prime stays at ...) or some such wording.

[Danke]

and fuck the stupid fuck that flagged this post along with the newbs that gave the infract.

Expires 11-26-2011 09:57 PM: I want a zero interest... (http://www.ronpaulforums.com/showthread.php?330735-I-want-a-zero-interest-loan-how-do-I-qualify&p=3751592#post3751592)
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11-16-2011 09:16 PM
malkusm (http://www.ronpaulforums.com/member.php?10951-malkusm)

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Forum Guidelines Violation
Nirvikalpa (http://www.ronpaulforums.com/member.php?17238-Nirvikalpa)

never even seen Nirvikalpa on here before. they must be giving out mod positions to people by lottery now.

Nirvikalpa is the old Liberty something or give.me.liberty such and such. can't remember the exact name.

Anyway, you banned? WTF?

[Stevo_Chill]

I want free money.

[Seraphim]

There are a host of politicians more than happy to pander to you.



I want free money.

[Stevo_Chill]

There are a host of politicians more than happy to pander to you.

i'm sure, as long as i'm a good lil' sheep and obey the rules. they will give me everything i want.

[heavenlyboy34]

Nirvikalpa is the old Liberty something or give.me.liberty such and such. can't remember the exact name.

Anyway, you banned? WTF?
+1 I don't think Torch did anything ban-worthy.

[emazur]

The 0% is definitely locked in for the 12 months? I always wondered if there was some clause about (0% if prime stays at ...) or some such wording.

Yes, it's locked. They only change it if you don't make a payment on time

[Nate-ForLiberty]

+1 I don't think Torch did anything ban-worthy.

oh shalax, it's most likely a temp ban. And he flat out disrespected a couple mods. It was only an infraction. He got banned because he overreacted. I don't get the whole "resist mod tyranny" meme here. Pretty lame.

[helmuth_hubener]

I see so many people here with the word "Banned" below their name, but who nevertheless continue posting, that I am never sure who really is banned. I assumed people just change their user text to Banned as a joke or a fashion or to show solidarity with someone who got banned, is that correct?

[Carson]

I want a zero interest loan; how do I qualify?


Get elected?

[Johnnybags]

You can do one of two things

1.Take over a bank or start one

2. Sell naked puts on a commodity index and let Uncle Ben work for you.

I prefer option 2 as it is easier and pays better.

[Danke]

I see so many people here with the word "Banned" below their name, but who nevertheless continue posting, that I am never sure who really is banned. I assumed people just change their user text to Banned as a joke or a fashion or to show solidarity with someone who got banned, is that correct?

The rep star disappears with a banning.

[Zippyjuan]

I'm reading through this: http://www.federalreserve.gov/pf/pdf/pf_3.pdf

And I'm trying to determine the mechanism by which these zero interest loans are handed out. It's either:

1) Securities trading (Open market operations)
2) Discount window lending

You do need to be a member bank to participate in Discount window lending, but that doesn't look like it, because "Beginning in early 2003, rates for discount window loans have been set above prevailing market rates"

It could be Open Market Operations, but it doesn't look like you need to be a member bank. Regarding OMO:


This doesn't look like you need to be a member bank. You just need to have an account at NY Fed, meet 'capital standards of their primary regulators' and be 'meaningful and creditworthy'... I wonder what that means, exactly.

The Discount Window is how the Fed issues loans. You have to be a member bank in the Federal Reserve banking system to be elgible as was described earlier.

Open Market Operations is the Fed buying and selling securities- mostly US Treasury notes. These are not loans and they are not interest free. The Treasury sells the notes via auctions (which the Fed does not participate in) to raise money to cover US government debts. The Fed instead buys them in the secondary market thorugh a series of specific brokers- the Primary Dealers. The brokers make bids of how many they want to buy or sell and what price they are offering and the Fed decides which ones they will purchase from and how many shares they are willing to buy. \

Info on primary dealers (I note a list of them in a post above). http://www.ny.frb.org/markets/pridealers_policies.html

The primary dealers serve, first and foremost, as trading counterparties of the Federal Reserve Bank of New York (The New York Fed) in its implementation of monetary policy. This role includes the obligations to: (i) participate consistently as counterparty to the New York Fed in its execution of open market operations to carry out U.S. monetary policy pursuant to the direction of the Federal Open Market Committee (FOMC); and (ii) provide the New York Fed’s trading desk with market information and analysis helpful in the formulation and implementation of monetary policy. Primary dealers are also required to participate in all auctions of U.S. government debt and to make reasonable markets for the New York Fed when it transacts on behalf of its foreign official account-holders.

This policy sets the standards for primary dealers (Standards). Each primary dealer must meet the Standards, initially and on an on-going basis. All primary dealers will be expected to engage in the traditional primary dealer functions listed above. All primary dealers will also be eligible to: (i) participate in the New York Fed's overnight securities lending facility; and (ii) participate in such other operations or facilities, pursuant to their terms and as set forth in this policy, as may be available to primary dealers from time to time.1

[CoreyBowen999]

Nirvikalpa has been here since the very beginning.

[Danke]

oh shalax, it's most likely a temp ban. And he flat out disrespected a couple mods. It was only an infraction. He got banned because he overreacted. I don't get the whole "resist mod tyranny" meme here. Pretty lame.

Temp? Been over two weeks...

[torchbearer]

Temp? Been over two weeks...

4 weeks for taking it to a mod. remember that.
you must respect their authority or else.