The Fed Created $3 Trillion Since 2008 And All I Got Was...

Adam Taggart
By Adam Taggart on Fri, Aug 8, 2014 - 7:57pm

From CBS MarketWatch:

One-fourth of U.S. families "just getting by"

New data from the Federal Reserve highlight how many Americans continue to struggle financially more than five years after the end of the Great Recession.

As of September 2013, when the central bank conducted the poll, a quarter of families said they were "just getting by," while an additional 13 percent were struggling to make ends meet.

Asked to compare their current financial situation with how they were faring five years ago, as the housing crash was wreaking havoc on the economy, 34 percent of respondents said they were doing "somewhat or much worse" than in 2008. The same percentage reported essentially treading water, while 30 percent said they were doing better.

"Given that respondents were being asked to compare their incomes to 2008, when the United States was in the depths of the financial crisis, the fact that over two-thirds of respondents reported being the same or worse off financially highlights the uneven nature of the recovery," the Federal Reserve said in the report.

Read the full article here

 

Note: If you're reading this and are not yet a member of Peak Prosperity's Economy Wonks Group, please consider joining it now. It's where our active community of economic enthusiasts share news and engage in debate regarding all things economic. Simply go here and click the "Join Today" button.

10 Comments

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Nice Work.

My view.

Capitalism does what it is mandated by law to do- maximise share holder profit. (This is profoundly different to acting in the interests of the shareholder, which is a much broader set of goals.)

To maximise profit they naturally minimised wages. They did this very successfully. The middle class lost spending power. (Henry Ford made sure his workers could afford his motor car, not because he was soft hearted.)

The velocity of money tanked. The velocity of money was increased by lowering lending standards. We all know what that resulted in, don't we?

Acting on powerful "hints" from mobsters, AG and Ben B. used this crisis as a pretext to debauch the currency by printing and handing the paper over to the Mob to buy anything and everything.

Nice work if you can get it.

 

blackeagle's picture
blackeagle
Status: Silver Member (Offline)
Joined: May 16 2013
Posts: 217
I am confused...

If so many families are still struggling and the data says the recession is over, so the numbers means nothing? They obviously are not the appropriate way to measure economy recovery especially when such economy relies on heavy money injection, restructuring, money hoarding, etc... and not wealth creation.

My opinion is that the US are still in an economic crisis and just waiting for the second round...

shastatodd's picture
shastatodd
Status: Bronze Member (Offline)
Joined: Oct 16 2010
Posts: 49
"recovery"?

" the data says the recession is over"

 

printing billions and billions can buy one hell of a "recovery".

 

this will not end well - wise people are doing what they can now to mitigate what is unfolding.

Merle2's picture
Merle2
Status: Bronze Member (Offline)
Joined: May 4 2014
Posts: 34
Let's see, they printed $3

Let's see, they printed $3 trillion and there are 300 million people in America. Ok what does that come out to per capita?  Hmm. Why didn't they just give us each an equal share? That comes out to $10,000 per person. Golly, my family could have used the $40,000 that would have been our share. And we would have done a lot to stimulate the economy if we had been given that money.

SagerXX's picture
SagerXX
Status: Diamond Member (Offline)
Joined: Feb 11 2009
Posts: 2219
Merle2 wrote: And we would
Merle2 wrote:

And we would have done a lot to stimulate the economy if we had been given that money.

Yeah...and most of the money would have ended up back in the bankster's hands anyhow...  But as rank and file, we don't merit a chance to finger the hot money....

Merle2's picture
Merle2
Status: Bronze Member (Offline)
Joined: May 4 2014
Posts: 34
Right, but I work hard

Right, but I work hard for $40,000, and the Fed can get the same amount of money for free. And my $40,000 and their $40,000 compete in the same marketplace.

If the money is "hot"--that is, illegal and wrong-- then we should have shut the whole QE process down. If it was necessary to maintain the money supply, then why didn't the money they printed come to me?

 

Wendy S. Delmater's picture
Wendy S. Delmater
Status: Diamond Member (Offline)
Joined: Dec 13 2009
Posts: 1982
what is "hot money"?

Merle2, I don't think that's what SagerXX meant by "hot money."

In financial markets, 'hot money' is the flow of funds (or capital) from one country to another in order to earn a short-term profit on interest rate differences and/or anticipated exchange rate shifts. These speculative capital flows are called 'hot money' because they can move very quickly in and out of markets, potentially leading to market instability.

GM_Man's picture
GM_Man
Status: Bronze Member (Offline)
Joined: Nov 4 2012
Posts: 74
So the numbers mean nothing?

Blackeagle wrote:"...so the numbers means nothing? They obviously are not the appropriate way to measure economy recovery especially when such economy relies on heavy money injection, restructuring, money hoarding, etc... and not wealth creation."

This is the one specific view that I have where others may choose to disagree. An economy can be measured in multiple ways including but not limited to the labor force statistics, the stock market (which has more stats and graphs than anything else in history except maybe for baseball), the bond market,  the commodities market, and the foreign exchange or currency statistics.  

What The-Power-That-Be show or report are those numbers that are the easiest to measure, IMHO.  Our media sources in their hast to be the first to 'the wire' with a breaking news story no longer performs an independent analysis of the latest figures from the reporting government or independent source.  They simply report on those stories and the figures that are aligned to their point-of-view.  The days of Edward R. Murrow are gone, long gone never to return.  The internet has killed the newspaper journalists.  I can honestly say that I didn't see that coming.

So we are now fed the cack produced by alleged Thing Tanks (non-for-profit organizations bankrolled by special interests), Government Agencies (non-for-profit organizations that are bankrolled by our tax dollars not to become more efficient but to become larger and larger as time goes bye) and Pundits (talking heads who represent themselves and/or other non-for-profit organizations some that they founded and some that have them on the payroll).  

That cack is now called news, but it once was the foundation of our democracy and it was a good thing.  A well educated electorate with a free press to provide true unbiased reporting of the complex issues that face us as a nation is a requirement for the success and long-term health of this great nation. 

Instead, we get cack.  We are no a polarized nation.  We are provided lies, more lies, statistics, and spin.  You don't like the story from Fox, then switch to MSNBC, CNBC, BBC, CNN, RT, or Al Jazeera.  

I am reminded of Edward R Murrow's final words when signing off, 'Good Night, and Good Luck.'
 

Merle2's picture
Merle2
Status: Bronze Member (Offline)
Joined: May 4 2014
Posts: 34
Is the hot money hot?
Wendy S. Delmater wrote:

Merle2, I don't think that's what SagerXX meant by "hot money."

 

Ah, I see, the money is "hot money" but the money is not "hot". Got it.

Which brings up an interesting question: Is it more accurate to define the money created by the Fed in QE as "hot" (stolen) or as "hot money" (fluid).

 

 

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1429
SNAP cards for everyone. 

SNAP cards for everyone.  Frito-Lay stock!

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments