Archive for December, 2012
This is why the economy hasn’t budged since 2008 (contrary to what the TV, BLS, WH, etc. tells you). Thanks to Fed policies (ZIRP/NIRP, trillions in excess liquidity, etc.) banks are paid (and incentivized) to not lend. Difference between loans and deposits has surged to an all-time high of $2 trillion.
Notice where the two lines (which historically have always moved together) began their dramatic divergence. Clue: Right when the economy imploded and the Fed swooped in to the rescue.
Fact is that the vast majority of Americans are completely ignorant when it comes to economics. The average-joe is still focused on who will win X-Factor is that the vast majority of Americans are completely ignorant when it comes to economics. For anyone that actually cares, here’s a good breakdown by Bloomberg regarding the Fiscal Cliff.