Federal Reserve punishing savers in low interest rate environment – Since the 1960s 5-year Treasury Bills average 6.5 percent. Today a high yield money market account will get you 1 percent.
Saving money is usually pushed to the background in a debt induced economy built around spending. Marketing firms are designed with the intention of parting you from your hard earned dollar. The housing bubble was a manifestation of a system permeated by easy access to debt and promises to repay current purchases with future dollars. [...]
Federal Reserve openly aiming for inflation – The Fed looks for a sequel in punishing the U.S. dollar and hopes to inflate debt and the middle class away.
The Federal Reserve has painted itself into a very narrow and troubling corner for most of working and middle class America. The massive debt problems on hand have no realistic way of being paid off and the best path in the eyes of the Federal Reserve is to slowly inflate away the currency and debt. [...]
The downsizing of America – Oil production off 1980s peak and manufactures learn creative methods of repackaging inflation.
There is a slow burn going on and it is happening in your wallet and also in the gas tank of your car. The US Treasury and Federal Reserve have made it their mission to slowly cut the value of each one of those green dollars you have. Since many Americans are struggling to make [...]
How the financial elite have dismantled the American middle class – top 1 percent share of wealth at levels not seen since the Great Depression. Goldman Sachs offering average bonuses of $430,000 while a record 43,200,000 Americans receive food stamps.
The U.S. economy is now operating like a finely tuned engine bent on dismantling the middle class and protecting the tiny elites in our nation that have learned to manipulate both political parties to their financial benefit. This did not occur over night but started in the 1970s when the U.S. government and investment banks [...]
Financial trends of the new American economy – Higher educated workforce with harder time finding and keeping jobs, median retirement account for Americans at $2,000, global stock market growth, and housing bust covering up inflation in other areas.
The Great Recession is revealing some fundamental challenges in our economy. One of those challenges revolves around the exceedingly expensive college degree and its ability to translate into employment. As a percent many more American’s have a bachelor’s degree today than say in 1992 yet unemployment for college educated Americans is at modern record highs. [...]
The road least pillaged – S&P 500 up 90 percent from bottom but housing values down 30 percent nationwide. Wealthy store most of their wealth in stocks while most Americans have their net worth in housing. 2010 record year in foreclosures and the upcoming lost decade in housing.
There are few investments in the US that are so heavily subsidized like housing. Residential and commercial real estate included benefit from favorable government policies to increase demand. Some of these policies may have merit but a large part of the housing market has been injected with so many perks that the true value of [...]
The gambling economy – Nevada GDP contracted 6.4 percent during the crisis. A state where 1 out of 4 people is unemployed or underemployed. States trying to balance budgets with gambling and casinos.
Nevada has really taken a hard hit from the current recession. Most Americans at some level have felt the repercussions of the current financial crisis but Nevada has felt the pangs of the crisis much deeper. Nevada now holds the highest unemployment rate of any state in the country. Nevada’s GDP is $131 billion with [...]
A lesson in college debt – Student loan debt increasing at a rate of $170,000 per minute. Student loan debt will hit $1 trillion in 2012. For-profit schools take the place of subprime mortgages.
College loosely defined is an educational institution or as we are now seeing in the US a place where young people go to dive into a pool of debt. A college education was never a guarantee to a lucrative and well paying career. In a time when the middle class was more robust college was [...]
FDIC and US banking industry continued insolvency – 11 percent of US banks are labeled as troubled financial institutions. CEO on the record of exporting American middle class.
The US banking system is largely a system based on consumer confidence. You would require the confidence of Zeus if you had $13.3 trillion in assets backed by an FDIC Deposit Insurance Fund (DIF) that is practically insolvent. Even as the stock market solidly recovers to the green the state of the average American’s financial [...]
Federal Reserve welcomes a Brave New Economy – how the Fed is robbing the public in open daylight. Maiden Lane Special Purpose Vehicles purchased toxic mortgages like option ARMs and commercial real estate.
The global economy seems to be facing a Brave New World envisioned by Aldous Huxley where the world is operating under a command economy and all citizens are psychologically conditioned from to birth to value consumption. The Federal Reserve is the ultimate spend more than you earn machine. It is amazing that a few hours [...]