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News Link • Economy - Economics USA

Shared Economic Theology Causes Stagnation, Suffering

• by Robert Cogan
 The Crash of 2007 -- 2010 destroyed $10 - $13 trillion of household wealth. Then "job creators" destroyed 8.5 million jobs. The two "stimuli" totaled less than $1 trillion. No way that little stimulus could offset loss of 8.5 million jobs and $10 trillion of wealth. Beyond the Treasury TARP's $700 billion bailout, the Federal Reserve (the Fed.) recapitalized the megabanks with $16.1 trillion in near 0% interest loans (GAO Report 11-696, 7/10 available online) or "only" $7.7 trillion (per Bloomberg News.) This enabled "too big to fail" (TBTF) banks to make super-profits relending the 0% money at commercial rates. Big corporations profited enormously and stock prices reflated. Banks now have $1.4 trillion in excess reserves at the Fed. and corporations, $2 trillion excess cash.

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