The Financial Battle for the Middle Class – Underemployment at 20 Percent, 38 Million Americans on Food Stamps and Little Hiring. Can it be a Recovery with no Jobs for this Long?
For most Americans a jobless recovery is an oxymoron. After all, the vast majority of Americans who pump money into the economy through consuming what they earn, typically find it harder to spend if they don’t have a job to draw an income from. It is understandable that there is a lag between a recession […]
The Ultimate Ponzi Scheme – FDIC is Backing $5.3 Trillion through the Deposit Insurance Fund that now has a Balance of -$20.8 Billion. FDIC has Cash and Marketable Securities of $66 Billion. Is that Really Enough to Back Every Account for $250,000?
The FDIC is running the biggest confidence game in the country. The FDIC is now protecting through the Deposit Insurance Fund (DIF) some $5.3 trillion in deposits in banks across the country. All of this is secured by an insurance fund that is now in the negative by $20.8 billion. In the middle of this […]
The Expanding Economics of Austerity – Home Equity Loan Ads Replaced by Brown Bag Ads. Breakfast Sales take a hit as more Unemployed Avoid eating out.
The middle class of America is adapting to the new austerity taking hold. Many are changing their habits to live in a market where credit is less accessible but others are having a hard time giving up the artifacts of the debt boom decade. However you slice the numbers average Americans are confronting a leaner […]
Quantitative Easing and the Electronic Money Printing Machine – Saying Goodbye to Historically Low Mortgage Interest Rates. Federal Reserve 95 Percent Complete on Buying $1.25 Trillion in Mortgage Backed Securities.
People forget that quantitative easing is a form of creating something out of nothing. This extreme form of monetary policy is called upon in certain situations when central banks reach the zero bound with their funds rate like the Federal Reserve in this current crisis. What is quantitative easing? The Federal Reserve trying to solve […]