The John and Jane Q Publics have realized that they can not spend all they have and certainly they can not spend what they do not have. How much of the QE-II will it take for them to "go stupid" again? A few hundred billions won't cut it. Not enough of a trickle down.
So what is with this 0% rate and massive infusion into financial market for? You guessed it, the W/S mafias, aka our Saviors, the banksters will make billions in profits.
Long live Capitalism you said? Not my father's capitalism. It is the Corruption, a wolf in sheep's clothing, calling itself Capitalism.
When are the tax payers going to wake up to stop the madness of corrupt salaries, bonuses and pensions of local, state and federal bureaucrats and corrupt CEOs and BODs of public companies and their corrupt Unions?
I as a taxpayer (god fearing, law abiding fool i.e.) have had it.
I shall not carry the burden of the Economy of US and Prosperity of the ROW (rest of world) on my back as a mule! I shall be heard at the Elections. Everyone that has been in the office during the last decade (a lost decade i.e.) must go! Federal, State and local governments must be cleansed!
Bounty it does not matter who you would put into office. Whoever is put into office cannot and is not able to fix the problems at hand.
The reason: Either the person, who is elected into office, is so tied up in red tape he cannot make any good changes or he is corruped while in office with the same effect.
"it does not belong to man who is walking even to direct his step" (from Jeremiah 10:23) Man does not have the ability to successfully govern him self. This is why all efforts allways seem to fail and no one is happy.
In Sept 2008, the banks were out of cash. They would not have been able to honor the credit lines on which the large companies depended for their tax payments on Oct 1, payrolls etc. Thus, TARP was passed to put up to $700 Billion in cash into the banks.
The low interest rates were to allow the banks to borrow from the Federal Reserve and buy U. S. Treasury debt to fund the deficits that were coming. During this administration, the $1.4 Trillion deficits are taking all the money the banks can generate to fund the additional federal debt.
Thus, no money left to loan to you or me.
The fractional reserve banking system including the federal reserve system is designed to enslave the borrowers. Have you ever wondered why it is that the Constitution allows Congress to "coin money" without going into debt, but under the Federal Reserve statutes the U.S. government must issue debt in order for the Federal Reserve ( a private corporation) to issue its Federal Reserve Notes to be used as money in the U.S.? Thus, the taxpayer pays interest on a debt issued to create money that Congress could have "coined" for a small fee at its own Mint or the Engraving Department at the U.S. Treasury.
Now consider all the interest paid on the national debt since 1913, the income taxes taken from citizens to pay that interest, and, ask one last question-- who benefited from receiving all that interest?
If you find the above interesting, you might read the book "The Web of Debt" by Ellen Hodgson Brown.
I have to agree with most of what you are saying.
1. At this point, the massive liquidity is only helping banks and those who are lucky enough to have existing, variable rate loans with no floors. For example, banks are paying only about 0.5% interest on their depostis and on my 2 loans taken out during 2007, I am paying LIBOR + 2.25%. This means I have been paying only about 2.5% interest, but the bank is still making about a 2% spread.
On my 2010 loan, I am paying 7% fixed for 5 years. The banks are still paying only about 0.5% on their deposits, so my bank is making a spread of 6.5%. Hugely profitable.
Most CRE loans have 5-year maturities (although most CMBS loans have 10-year maturities). Three years into this financial crisis, most bank CRE loans have already had to refi to higher rates. Within another 2 years, virtually all the bank CRE loans will have refied with LIBOR floors. Then the banks will be making 6% spreads on all their loans. This will result in a massive recapitalization of financial institutions that survive and a huge transfer of wealth from savers, people who live on a budget and good, healthy businesses to the surviving banks.
2. Just hope that when you show up at the polling place that there aren't armed gang members there who won't let you vote. Then hope that the election judges actually count your vote and don't stuff the ballot.
Remember what Stalin said: "It is enough that the people know there was an election. The people who cast the votes decide nothing. The people who count the votes decide everything."
ag55.., thanks for your post and the illumination about CRE loans. I was actually underestimating the wealth transfer!
Now regarding your second point. At one point in time, I was a skeptic about the "dire" forecasts. During the "year 2000 scare" I was an IT instructor and openly disagreed with fear-mongering about the "cosmic" and "computer" disasters that supposedly awaited us. I was right as time proved it.
But in face of this massive assault on the economic front, I can not be skeptic anymore. We are headed for trouble. Did Mayans know something we don't?
I hope that come November we give a stern message to the "corrupt' and those who serve them. My biggest and private grief has been that those who claim to be "conservative" actually sold their souls to the underworld (aka W/S mafias) and now can not be trusted. Where do we find honest people who can pull us out from this mess?
Feds may not be evil but certainly spineless. US treasury is a joke. SEC is busy watching porn on their laptops. Local, state and Federal officials are secretly paying themselves to riches. And of course there is no point in mentioning Congress or the President (past and present).
Are we to dissolve from a civilized society into a "Mad Max" world?
Normally I would say "God help us" or something similar, but I shall hold my tongue (or my laptop) and just watch in fear and hope.
next you will hear them (politicians) say their experience is what is needed to get us out the mess their experience got us into. i've been telling friends that the way out of this is to begin the house cleaning now, if we want to gain back some control. people like franke, pelosi, and others should not be re elected if they are the best this country has to offer than god help us.it seems peoples morals and values disappeared when oliver stone's movie came out and told everyone greed is good and its been downhill ever since.