Plundering the middle class – 35 percent of American households live on $35,000 or less each year. Bailouts a success for the wealthiest 5 percent of Americans.
The middle class is being slowly dismantled piece by piece. New Census data released this week highlights a continuing trend that is pushing more average Americans into a perpetual struggle to stay financially afloat. New data shows that the median household income is $50,221 in 2009 which is down from $52,029 in 2008. This drop of 3.6 percent comes at a time when many U.S. households are struggling to make payments on mortgages and more importantly, find jobs. The only group that grew their household income was for those making $180,000 or more (top 5 percent). This growing inequality gap demonstrates that this recession is actually widening the chasm between the working and upper-classes of our society. I went ahead and took the data from the new Census report and created the following income distribution chart:
Will quantitative easing 2 bailout the commercial real estate market further? The shadow bailout world not being covered by the mainstream media. Fed deliberately trying to crush U.S. dollar to bailout banking system.
As the Federal Reserve gears up for quantitative easing part two, a slow hidden bailout is occurring in the commercial real estate market. Commercial real estate is a giant industry making up over $3 trillion in outstanding loans in the U.S.  Yet not much is being said about this in the press. Why? Because in a way, commercial real estate (CRE) is being funneled through various channels to bailout horrible banking loans but the process is convoluted on purpose. We already have examples of the Federal Reserve owning a shopping mall out in Oklahoma for example. The Fed has purchased incredible amounts of debt including CRE debt. Much of the focus has been on the Fed monetizing residential real estate debt and this is true. After all, they did buy over $1.25 trillion in residential mortgage backed securities.
Wealth inequality rivals the months prior to the Great Depression – Americans would prefer a more evenly distributed wealth system. Over 80 percent of Americans still feel we are in a recession.
The official announcement that the recession is over underscores the massive disconnect between Wall Street and the rest of America. Wealth inequality in America is at levels last seen right before the Great Depression ravaged our economy. Yet the inequality has grown even more intense as this crisis has gone forward. 43 million Americans are now classified as being in poverty. This trend hasn’t shifted in the last decade, recession or no recession. The system is absolutely flawed and that is why we have over 16 percent underemployment, 41 million Americans on food stamps, 4 out of 10 workers in low paying service sector jobs, the median household income falling under $50,000, record monthly foreclosure filings, and yet the recession is over according to a small group of economists. The recession may be over for Wall Street but the rest of America is still struggling.
The big banking sham and how the recession is over for the top 1 percent – Top 1 percent of banks control 80 percent of banking assets while household net worth is down $12.3 trillion from the peak.
The headlines read that the recession is over. In fact, the recession has been deemed over since June of 2009 by the National Bureau of Economic and Research (NBER). Yet the fact of the matter is working and middle class Americans are solidly in a deep recession. There was a town hall that was televised where a Wall Street “worker†was telling the President that he was tired of being treated like a “piñata†because Wall Street is directly linked to Main Street. It is not. Wall Street has turned into a giant vampire leech that is sucking every ounce of productivity out of the real economy. The big banks have grown bigger yet unemployment remains elevated near peak levels. The net worth of Americans is still over $12 trillion below the peak reached only a few years ago. Home values are still in the dumps. Why is the recession over? Because GDP has grown and other random indicators that really just pertain to the top 1 percent.