I, too have been thinking about the "shell game" lately ! In relationship to the economy, my synopsis, these are the major pieces that have influenced the shell game, as provided below. What do you make of it , p1sorell ?
1) Earliest Fanny Mae Zero Coupons sold in early 1980's yielding ~ 15% @ 18-20 years maturity, mostly bought by China, $1T. Bonds backed by full faith of The USA govt. Bonds tied to house market, mortgages.
Release of Freddie Mac Bonds follows Fannie Maes.
2) 2007-2008 market collapse, ie., Allan Greenspan remarks due to housing market & "excessive exuberance" in stock market. These related bubbles bursts.
3) 2010-2011 market comeback. Frank/Dodd Act. Enormous bank bailouts versus home foreclosures.
4) The banks are full of cash. The market has double -topped to its all time high ~ $14,500 & holding....
5) Deficit spending has increased over the last 15 years from $250-400B/year to $1600B/year.
If the money is presently in the bank, where's it going next ?