When Wall Street can borrow money from the governemtn at 0 and invest in US Treasuries paying 4-5% they make money. The problem is that the money they are sucking up belongs to generations not yet born.
When government pumps trillions of dollars that they don’t have into the market the market, surprise, rises. Again those trillions are to be paid for by the yet to be born.
Average wages are down. Of the 160,000 jobs “created” last month 48,000 were census workers and 56,000 were in education. Education employees for the most part work for government. So we have over a hundred thousand new public employees and 50,000 private employees to keep the public employees employed and retiring with golden parachutes early in their lifetimes.
Finally, when business reporters celebrate too big to fail, government takeover of private industry, trillion dollar deficits as far as the eye can see, a hundred trillion in unfunded liabilities and a 100% debt/gdp ratio staring us in the eye you know the end times are near for capitalism.
You’re exactly right. Guess what the best performing stocks are today? Financial services. Look at CITI, B of A, and the rest. They’re playing Obama’s game.
The “growth” is all coming from the government sector, which is just reallocating wealth from one area to another. When the ARRA “creates jobs” building a highway, one of the few actual tangible programs it funded, that just means some places are getting new roads now that will be paid for by future taxpayers when the bill comes due.
“Generational Theft” doesn’t make for such eye-catching headlines however...