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The Prodigal Son: Federal Reserve Bankruptcy; Silver Lining or Wall Street Marvel?
Is anyone minding the American store? Are they kidding Pollyanna’s?
The driver of the US Economy is the Consumer. American consumers currently suffer 20% true unemployment with falling real wages. Many can’t pay bills or mortgages despite promised bailouts and stim plans.
http://www.shadowstats.com/alternate_data
One out of nine Americans is on Food Stamps. More than one out of six Americans depends on a government check, plus far more if we count corporate tax subsidies.
California’s unemployment benefits are $18 Billion in the hole, with another $24 Billion budget deficit. Federal tax revenues fell 44% last year.
http://globaleconomicanalysis.blogspot.com/2009/06/benefit-spending-hits-2trillion-highest.html
http://www.usatoday.com/money/perfi/taxes/2009-05-26-irs-tax-revenue-down_N.htm
State tax revenues fell 14% nationally, with rising long term interest rates on bonds and mortgages, suggesting continuing asset declines, budget cuts and hardship.
http://www.rockinst.org/newsroom/news_releases/2009/2009-05-13-state_tax_collections_plummet.aspx
Even the President of the United States recently stated:
We are out of money.
http://www.drudgereport.com/flashocs.htm
Obama wants to raise taxes in a Depression. Geithner wants to tax offshore businesses, charities and trusts for the rich. Bernanke wants to create more loans when in fact demand is falling.
Is anyone in charge paying attention, or just whistling in the dark past the rusting graveyard of the American Economy?
Who in their responsible mind would double down on a losing streak to buy an even greater passel of toxic assets, including defaulting Corporations, Mortgages and Treasury Bonds, when their prices are declining because their very credit solvency is impugned?
