Hey, all you partisan politicos: do you want to know what has really happened to the financial system over these last three years? Can you handle it?
The Federal Reserve has increased its balance sheet several trillion dollars. It has also taken on trillions in “off balance sheet items”, just like banks. This increase in the Fed’s “AUM” has been simply a TRANSFER OF WEALTH from the public sector to the private sector. But the only beneficiary of those funds have been to BANKS and OTHER INVESTORS.
This is the fact: There has been a giant wealth transfer from the public sector to the private sector under Obama. And the corresponding increases in public debt HAS BEEN BALANCED BY STOCK MARKET GAINS.
The fact remains is that Obama is Geithners bitch. Here is the conversation between Geithner and Obama in 2009: “Do you want to be the President that presided over the second Great Depression and the first and only African American President (no racist)? Well, then you better let Ben do his thing and save the banks and the stock market or you are finished.”
Obviously this Administration has been the “BFF” to banks and the markets but nobody want to say it.
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shhhhh, you, Bleier ! 😉
No argument with your point. But what Administration would choose a great depression, if instead it could be avoided, albeit only temporarily?
bullshit. cop out. there were many other ways to deal with the situation
Romney: “I have nothing but respect for women. I’m good friends with the owners of some.”
“I can appeal to undecided voters. No one is more undecided than I am.”
Oh gee– I’m completely changing my vote due to your nonsense.
The one thing that irritates me the most is when someone tout’s something as “truth”, with no solid evidence to back it up. C’mon Scott, this is purely an opinion piece until you have the data to back it up.
In what way did money leave the “public sector?” What money was that? What assets? And how was it used by (or for) the public previously?
Please explain.
@Mad, I think it goes like this. Treasury issues, banks buy, Fed POMOs said issues, leaving cash back on the balance sheet of the banks with the Fed holding treasuries.
next logical step, at some point in the future is to default on the issues.
So the fed buys t-bills, etc. on the market with made up money. This keeps interest rates low, allows the Treasury to float more t-bills, etc. The money raised by the Treasury funds government programs that aid those on the welfare plantation, and pays the infrastructure construction workers (mostly men) pays the military, and does all the good things government does. It does not all go to banks and other investors. it is a hidden tax in the sense that the monetary value of the dollar will be reduced in time from these newly minted dollars. Particularly when these dollars begin to circulate faster. The Dow and S&P will go up in absolute dollars, but the value of same may actually decline.
Yeah there is a noticeable inverse correlation coefficient between UUP and SPY
You’re totally ignoring the fact that newly minted dollars (supply) will be eaten up by constant demand (2 million new participants in the economy yearly).
there’s a lot no one wants to say…..damn straight.next they’ll have everyone believe that the titanic limped it’s way back to port and repairs are under way. just the dollar sunk is all.
real recovery my ass.