David Stockman: "We've Been Robbed By The Fed"
Fed is a serial bubble machine for the top 1%.
A must watch from Bloomberg. Stockman is on fire in this clip.
April 3 (Bloomberg) -- David Stockman, former director of the Office of Management and Budget in the Reagan administration, talks about his New York Times op-ed.
Krugman got lost somewhere along the way.
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In case you haven't seen it yet.
Sundown in America - NYT David Stockman
Excerpt
Then, when the Fed’s fire hoses started spraying an elephant soup of liquidity injections in every direction and its balance sheet grew by $1.3 trillion in just thirteen weeks compared to $850 billion during its first ninety-four years, I became convinced that the Fed was flying by the seat of its pants, making it up as it went along. It was evident that its aim was to stop the hissy fit on Wall Street and that the thread of a Great Depression 2.0 was just a cover story for a panicked spree of money printing that exceeded any other episode in recorded human history.
Since the S&P 500 first reached its current level, in March 2000, the mad money printers at the Federal Reserve have expanded their balance sheet sixfold (to $3.2 trillion from $500 billion). Yet during that stretch, economic output has grown by an average of 1.7 percent a year (the slowest since the Civil War); real business investment has crawled forward at only 0.8 percent per year; and the payroll job count has crept up at a negligible 0.1 percent annually. Real median family income growth has dropped 8 percent, and the number of full-time middle class jobs, 6 percent. The real net worth of the ‘bottom’ 90 percent has dropped by one-fourth. The number of food stamp and disability aid recipients has more than doubled, to 59 million, about one in five Americans.”
The White House, Congress and the Fed, under Mr. Bush and then President Obama, made a series of desperate, reckless maneuvers that were not only unnecessary but ruinous. The auto bailouts, for example, simply shifted jobs around—particularly to the aging, electorally vital Rust Belt—rather than saving them. The ‘green energy’ component of Mr. Obama’s stimulus was mainly a nearly $1 billion giveaway to crony capitalists, like the venture capitalist John Doerr and the self-proclaimed outer-space visionary Elon Musk, to make new toys for the affluent.
Less than 5 percent of the $800 billion Obama stimulus went to the truly needy for food stamps, earned-income tax credits and other forms of poverty relief. The preponderant share ended up in money dumps to state and local governments, pork-barrel infrastructure projects, business tax loopholes and indiscriminate middle-class tax cuts.
The Democratic Keynesians, as intellectually bankrupt as their Republican counterparts (though less hypocritical), had no solution beyond handing out borrowed money to consumers, hoping they would buy a lawn mower, a flat-screen TV or, at least, dinner at Red Lobster.
David Stockman, The Great Deformation
Apr 10, 2013 at 4:11 AM
Reader Comments (18)
Limiting campaigns to eight weeks is another Stockman idea.
http://www.marketwatch.com/story/stockmans-rant-ignores-whats-right-with-america-2013-04-03?pagenumber=2
There you go, Jack Lohman.
http://www.truthdig.com/report/item/it_wasnt_david_stockman_who_wrecked_the_economy_20130402/
SHES MENTALLY CHALLENGED...IM KIND!
"Stockman's Sky is Falling"
http://www.ftportfolios.com/Commentary/EconomicResearch/2013/4/8/stockmans-sky-is-falling
"Yet, for four years, economic data have been consistently and relentlessly positive—not booming, but positive."
Are they referring to 50% increase in food stamp users (was 32MM, now 48MM, or 20% of all households) or to the plunging labor force participation rate (which is the result of shifting 10's of millions of unemployed people into disability welfare to game the headline unemployment rate)? Oh, no. Instead of cold reality, they want us to focus on Bernanke's go-to puppet, the stock market:
'And for four years, corporate profits and market capitalization have climbed substantially."
The shills, er, authors, fail to mention that mark-to-market accounting was abandoned in March 2009 in favor of fraudulent asset valuations. The entire market rise thus rests on profits that are false. Aside from merely delaying the ultimate day of reckoning (by duping the nationwide hopium den of TV watchers), it's a trick that works only once. The Fed is likewise out of gimmicks.
I was sympathetic to people who got burned in 2008. But the vast majority of them didn't learn a goddamn thing from it and are falling for frauds that are even more transparently ridiculous this go-round. Frankly, when the oncoming freight train of reality wipes them completely out, I'm just gonna laugh this time.
http://www.peakprosperity.com/podcast/81371/david-stockman-federal-reserve-fed-wall-street-bernanke-deformation
Wonder if these 3 authors are selling? My guess is yes. And I think that's the first time I heard Ron Paul called a "short seller."
New inventions? Really? You can't eat an iPad.
Funny how stealth Keyensians (maybe not so stealth) just gloss over or fail to mention massive, unpayable (without hyperinflation) public debt.
These ass clowns should be embarrassed. Nothing scientific or thoughtful in this analysis or response. It's just paper selling...
As you know I lived in Baltimore while working at Alex Brown in the 90s. I lived right downtown, near the baseball stadium. Less than 6 blocks from my apartment the wasteland began, just on the other side of MLK Blvd. It was a blight for miles. I can only imagine how much worse it has become. There were audible gunshots nightly emanating from the public housing projects. An absolute war zone.
http://www.nytimes.com/2016/02/12/us/politics/alan-graysons-double-life-congressman-and-hedge-fund-manager.html?_r=0
Former Fed inquisitor and enemy, now, and likely always complete sell-out whore...
john