“No society can surely be flourishing and happy of which by far the greater part of the numbers are poor and miserable.” – Adam Smith

The U.S. government rolled out a ‘red carpet, gold-plated bailout’ for the Wall Street financial sector during the great banking crisis of 2008 – 2010.

Public financing, $23.7 trillion worth, was rolled out in direct emergency loans, credit guarantees, toxic asset purchases, and other liquidity schemes to the very ‘players’ whose turbo-leveraged balance sheets ‘blew up’ when the default wave hit.

The big banks were resuscitated… and back to paying out billions of dollars in bonuses, in notable cases, by 2011.

Has that liquidity wave buoyed up the financial health of U.S. citizens?  Judge for yourself….

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Wall Street Journal, Dec 9, 2015                                                                               Excerpts:

A study released last year by the Brookings Institution, on whose board I serve, found that up to 40% of American households live hand-to-mouth. They spend all their available financial resources every pay period. Surprisingly, many of these people might be considered “wealthy” because at age 40 they typically hold about $50,000 of assets—but mostly in illiquid retirement accounts or home equity.

A 2011 Brookings study explored “financial fragility,” defined as the inability to muster $2,000 within 30 days to cover an unexpected expense—say, a car repair or medical bill. Half of those queried did not believe they could come up with the money. That includes almost a quarter of households making between $100,000 and $150,000.

A study released in May by the J.P. Morgan Chase Institute (JPMCI) analyzed a random sample of Chase accounts for 100,000 people. Middle-income earners—those making between roughly $40,500 and $63,000—needed about $4,800 in liquid assets to weather the volatility they regularly experienced. But they typically had only about $3,000. Similarly, 55% of Americans either break even each month or overspend, according to a March survey by the Pew Charitable Trust. Asked whether they would “prefer to have financial stability or to move up the income ladder,” 92% chose security.

One factor behind this trend is the changing nature of employment. Large numbers of jobs have been created since the crisis, but they don’t offer the security of the old ones. Positions in manufacturing and construction have been replaced with ones in hospitality or retail. Some 27.3 million people, more than 18% of workers, are currently working only part time, including 6.1 million who want but can’t find full-time jobs. Even more people, 7.4 million, hold multiple jobs.

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RealtyTrac Market Summary – November 2015:

“There are currently 909,740 properties in U.S. that are in some stage of foreclosure (default, auction or bank owned)…”

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It is time to light up the U.S. economy and strengthen America at ‘ground level.’

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                   The Leviticus 25 Plan 2017 (1263)

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