Category Archives: deficit

Fed Up


The Fed has kept the stock market and, so it claims, the U.S. economy afloat with low interest rates. The Dow lost 1500 points in the past week. World economic growth is stuck in the mud.

And with interest rates near zero, the Fed is low on flotation devices.

If income inequality is your thing, cheer up. Jeff Bezos lost $2.6 billion on Monday. Bloomberg has the fat cat score card here.

Backdoor Wall Street Bailout

131114-fed-yellen-easy-money-backdoor-bailout-wall-streetOur magic president has appointed a new Fed chief to make more magic money.

Janet Yellen’s Senate hearing for approval to succeed Ben Bernanke began yesterday.

Backdoor Wall Street Bailout

Andrew Huszar, a former bond buyer for the Fed, wrote an interesting apology in the WSJ this week for his role in “quantitative easing”.

He says that the Fed never bought a mortgage bond in its 100 year history until he was hired in 2009 to buy $1.25 trillion of the things! In a single year. According to Huszar Bernanke spun the scheme as a plan to help Main Street but it was really “the biggest backdoor Wall Street bailout of all time”.

Chairman Ben Bernanke made clear that the Fed’s central motivation was to “affect credit conditions for households and businesses”: to drive down the cost of credit so that more Americans hurting from the tanking economy could use it to weather the downturn.

QE may have been driving down the wholesale cost for banks to make loans, but Wall Street was pocketing most of the extra cash.

Easter Egg Roll


At The White House Easter Egg Roll, a boy tells another boy "I didn't know we were gonna get rolled (with debt)."As of today each individual’s share of the national debt is $53,276.81.

Deadbeat Nation


In the final press conference of his first term, the president explained what he will and will not do. He might take executive action against guns and he won’t be negotiating the debt ceiling with a gun to the head of the American people .

We are not a deadbeat nation and the full faith and credit of the United States is not a bargaining chip. Except when it is.

Eat the Rich


The tax hike on the rich to avoid the fiscal cliff will bring in 60 billion dollars. This year’s deficit is a trillion dollars. The president doesn’t want to cut spending. Stay tuned.