By 2003 forty-percent of corporate profits were generated in the financial sector. Banks became dependent on government action for their profits and used much of the money that they made to fund the campaigns of politicians to keep the action going.
There are two types of capitalists and business people. There are those that produce and those that suck the life out of others in a form of reverse socialism.
I find it interesting though that she does not know what to call our system of political and economic order.
Alan Greenspan appeared on CNBC yesterday and declared that his monetary policies had nothing to do with the financial crisis of 2008.
Stockman talks about the connection between debt and leverage, whether we have more to fear from public or private debt, and whether our economic system embodies crony capitalism.
This is Steve Liesman today again on CNBC talking about how the Fed may announce end to the the "taper" due to the weather!
Obama declared that he is going to make this a "year of action" in last nights State of the Union speech.
You have a class of people who have benefited from Federal Reserve money printing operations and people who are suffering from them.
Former Reagan budget director David Stockman on why Paul Krugman is wrong on the deficit and on monetary policy, how the Fed enriches and impoverishes, and where the U.S. economy is likely to go.
I have said many negative things about the Federal Reserve over the years. I have stated many times that Federal Reserve policy has helped to wreck the economy and cause harm to the American people.
The Federal Reserve money printing operations have been a disaster for the United States. They led to the internet bubble, housing bubble, and 2008 stock market crash. Now they are helping fuel a dangerous federal government debt bubble.
The die is now cast. The United States is going bankrupt in a few years. Republican leadership sold out in order to give MORE money to defense contractors that own them - even reducing the pensions of veterans to do it and making a bipartisan deal to allow Dems to fund their social programs with more of your money.
That could make December 18th a pivot point to watch for in December, because if some people are still worried about that when that date comes they will stop worry and hit their buy buttons.
She claims that the financial markets all look normal to her. Well, what does she call the bond market - which has now become the biggest bubble in the world and when it busts(probably in four or five years) will make the 2008 mortgage crash look like child's play?
I have written about the Federal Reserve report that says that the Fed essentially cannot allow interest rates to go up in my monthly newsletter. It's what I called the Mishkin report, because it was put together by one of Ben Bernanke's best friends. Today someone else wrote about it.
CNBC talks recovery and keeps making predictions and guesses on when QE stimulus will be paired back - and keep's pushing out its time period. Steve Liesman - and the letters LIES is key in his name - keeps saying that the Fed is watching the data.
Yellen will be your new "queen" as Ludlow put it in the above video of monetary policy. She will bring us new adventures in easy money monetary policy.
Yesterday's Fed decision to not reduce its quantitative easing(QE) money printing operation was both shocking and historic. It is very important for you to understand why they made their decision. We will look back on yesterday a few years from now as a historic event in the financial history of the United States.
Today Ben Bernanke and the FOMC will release a policy statement at 2PM and announce their command and control edict on the economy. After they do so CNBC will praise them and Steve Liesman will explain to you how Ben Bernanke is a genius.
Tomorrow marks the day of the widely anticipated FOMC meeting in which Ben Bernanke will announce a reduction in his quantitative easing money printing operation. CNBC has been talking about it all month and Bernanke is using it as a way to exit his Fed Chairmanship on a high note - by reducing QE he will be able to argue that his policies had a positive effect and more importantly if enough debt crisis hits later claim that he was not simply a mad money printer.
Larry Summers is withdrawing from the race to be the next Federal Reserve Chairman. He served as a wonderful worker bee for Wall Street banks throughout his career - he helped deregulate the banks and paved the way for their giant bubble profits in the late 1990's and 2000's that wrecked the economy in the crash of 2008.
What if the Fed pairs back QE? This has been the big worry of people the past few months and the constant talk on CNBC since May. When the stock market pulled back a bit in June people associated that pullback with the discussion that the Fed might pair back its QE bond buying program.
Finally Bernanke came out and told you what I have been saying is reality despite what the Wall Street press has been saying. The Fed is not on a tightening mode. In fact it may just as likely INCREASE QE as decrease it. He didn't say what he would do, claiming that the Fed will react to what the data is, but the admission that the Fed may actually increase QE in the future is a big admission.
Yesterday after the close Bernanke gave a speech and completely backtracked on all of the comments he made last month about reducing his QE money printing program.
As a result gold prices are up big and S&P 500 futures are up 17 points. It's nice to see the market up, but wow this is a huge Bernanke flip flop - and it is one you could pretty much see coming.
Bernanke is being told to STOP his zero interest rate money printing operations, because it is dangerously distorting the economy and he is ignoring these warnings. He will not stop his policies until they end in disaster.
A wonderful speech about corruption in the United States: from Washington DC and Wall Street, including the entire financial/banking system.
CNBC has a crazy article today saying that Central Bankers around the world are thinking of buying stocks. Not now, but maybe in five years.
The Fed is NEVER going to end its QE bond buying program. It simply can't. You see the Federal government's budget deficit is so big now that there are not enough people in the world to buy enough bonds every month to finance it so the Fed is stepping in with QE to bridge the gap.
The Fed is boxed in. It must print money in order to finance the federal government's budget deficit. Since 2009 half the US government debt has been bought by the Federal Reserve. It's never going to stop QE.