Sep 2016: Wall Street vs Main Street – after seven years of economic recovery

The U.S. Treasury pumped several hundred billion dollars into the Wall Street banking sector through its Troubled Asset Relief Program (TARP) in late 2008 to sweep billions of dollars worth of sewage-grade mortgage debt off bank books and onto the Fed’s own balance sheet at the start of the economic crisis.  It went on to also purchase equity positions in various banks to help restore bank capital requirements.

The Federal Reserve then rolled out its big guns and proceeded to transfuse Wall Street’s banking sector with more than $1 trillion through its emergency lending facilities, also known as the Fed’s ‘Secret Liquidity Lifelines.’

The Fed also purchased an estimated $3.5 trillion worth of  government, agency debt, and mortgage backed securities (MBS) through QE1, QE2, and QE3 as part of its interest rate suppression / economic rescue strategy.

One would think that these ‘extraordinary measures,’ as the Fed terms them, would have lit the U.S. economy up and we would be humming along on all cylindars.

Seven years – and here is how things have played out:

First – Wall Street has rebounded nicely…

http://www.marketoracle.co.uk/images/2011/Feb/DowJonesIndustrialAVerage.jpg

………………………………………………………..

Main Street America, however, has been sputtering…

Slumping GDP – for almost 2 years…

Real GDP: Percent Change from Preceding Quarter

14-15% of Americans depend on Food Stamps for survival...

http://www.trivisonno.com/wp-content/uploads/Food-Stamps-Percent.jpg

Over 100 million people depend on Federal Welfare benefits….

http://www.activistpost.com/wp-content/uploads/2012/08/More-Than-100-Million-Americans-Are-On-Welfare-460x334.png

Labor Force Participation Rate is scraping along at 39 year lows…

Charts courtesy of Jim Quinn – The Burning Platform

_________________________________

Enough is enough.  It is time to get America moving again – with a new strategy.

It is now high time to grant U.S. citizens the same direct access to liquidity that was provided to Wall Street during the great financial crisis.

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                  The Leviticus 25 Plan 2017 (1647)

Leave a Reply

Your email address will not be published. Required fields are marked *