Liquidity vs. the Real Money
By Daniel at 27 September, 2009, 9:11 am
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Massive amounts of liquidity could be pumped in, but if it was not immediately lent out to businesses for the purposes of increasing manufacturing and production, thereby priming the real engines of the economy required for job growth and recovery, it would simply be wasted by speculators who would use it solely for capital appreciation by driving up the markets with no benefit at all to the broader economy and without the stimulative effect upon job growth and production.
The Fed and the government know they can’t ask the taxpayers for more money to give to the banksters, so instead they have funneled money to the banksters via zero-interest loans to the banks and via government support of the stock market.
Sadly so history repeats itself, as a generation of responsible citizens fail to obtain jobs and delay family formation and cannot get on with their lives. All while the trillions pumped into the economy maintain million to hundred million dollar paychecks for the few at the cost of the many.
I think the bailout money has not been efficiently allocated toward developing engines of economic growth. 2009 the best year on record for bonuses at Goldman Sachs.
- TomGa
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