Federal Reserve punishes savers by subsidizing big banking bailouts – Two largest U.S. banks offer a paltry 0.05 annual percentage rate while increasing service fee charges and upping loan interest rates. S&P 500 not cheap.
The challenge most Americans are facing is first, trying to save money. If that hurdle is accomplished the next tougher question becomes where the money should be placed. The Federal Reserve by default with a negative interest rate policy has punished savers at the expense of massive debtors. The Fed for many decades since the [...]
Federal Reserve silently grows balance sheet to approximately $2.75 trillion by a shadow bailout of residential real estate and commercial real estate. The continuing hidden CRE bailout imperils future economic growth.
The biggest silent financial bailout going on in the nation revolves around commercial real estate. Commercial real estate (CRE) values have plummeted $3 trillion from their peak in 2008. While residential real estate values peaked in 2006 CRE waited two more years before moving lower. The two year lagged occurred because many banks, especially local [...]
China’s ghost cities and shopping malls – 14 million empty housing units in the U.S. while China may have up to 64 million empty apartments. GDP is only as good as the quality behind the financial numbers. China real estate bubble.
The Census released data showing that 14 million housing units in the U.S. are categorized as being vacant. As startling as this figure appears on the surface, China has an estimated 64 million empty apartment units. As we enter a perpetual cycle of global financial bubbles, the largest ongoing bubble in the world at the [...]
The financial scam of the century – In 2010 we added 600,000 millionaires while 5,000,000 people were added to the food stamp program. Wealthy derive profits from stocks while middle class hold most of their net worth in housing.
Part of the discontent roaming across America is that the economic recovery is targeted to a small portion of the population. This part of the population controls most of the mainstream media channels so the working and middle class are wondering why isn’t the fact that food, college, health care, or many other day to [...]
Federal Reserve and the opaque banking syndicate – If the economy were booming why does the Fed still hold over $2.5 trillion in securities? $640 billion current fiscal year budget deficit.
The Federal Reserve is one giant black box of financial mysticism in our economy. At least that is what the Fed wants the public to think so it can remain shrouded in mystery. Since the crisis slammed our economy and the bailouts started in mass, calls for greater Federal Reserve transparency have been echoed in [...]
Austerity nation – 45 million Americans on food assistance programs. Americans shopping at discount dollar stores confronting the realities of a shrinking dollar and disappearing middle class.
From November to December of 2010 487,000 Americans were added to the food stamp program. Keep in mind this all occurred while the stock market continued to soar and has rallied nearly 100 percent from the lows reached in March of 2009. Working and middle class Americans barely have enough to pay for the monthly [...]
Federal Reserve wild financial beast of Maiden Lane – How the Fed silently helped Hilton and Waldorf properties for the benefit of JPMorgan while placing the cost on working and middle class Americans.
The Federal Reserve has done an excellent job in covering up the trillion dollar banking bailout by essentially pretending it did not occur. To show how much it doesn’t care, it actually named a few bailout vehicles “Maiden Lane” for the New York Fed’s address in lower Manhattan. This sounds better than the “New York [...]
The Giant American Banking Deception – $7.4 trillion in deposits backed by insolvent FDIC insurance fund. Bank of America and JP Morgan each have more than $2 trillion in assets each while 72 million Americans earn $25,000 a year or less.
The American banking industry is trying to convince the public that simply by hiding bad debts in the deep levels of corporate balance sheets that taking on leveraged risk is somehow safe. FDIC insured banks currently have $7.4 trillion in actual deposits, much of it covered by the Deposit Insurance Fund (DIF). Most Americans think [...]
Home is where the working and middle class lose their money – $6.3 trillion lost in household real estate values. Top 1 percent control $13 trillion in financial assets while bottom 80 percent control $2 trillion.
When people talk about the American Dream it usually implies owning a home. Owning a home has been part of our collective psychology for generations and is hard to shake out even after such a disastrous and financially painful bubble that will linger with us for many years going forward. After World War II, owning [...]
College Marauders – Student loan debt inches to $900 billion when only in 2000 it was at $200 billion – Most expensive colleges in country charging nearly $60,000 per year in tuition.
College education is a dream for many Americans. What the current recession is showing us is that having a college degree is a substantial benefit in getting ahead as long as you don’t put yourself into the abyss of student loan debt. This has been magnified by the fact that low skilled work and blue [...]