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Bankers Are the Welfare Queens

It turns out that the big bankers are Reagan’s real welfare queens driving their Cadillacs or more likely their BMWs or Mercedes.  When Larry Summers dropped out of the Fed Chair race, the stock market went up, because they thought that he would not be as likely to follow Bernanke’s stimulative QE policies as Janet Yellen would.  I think that Bernanke is truly targeting high unemployment, which is being largely ignored by Congress (particularly Republicans) and the administration, which seems to have given up on any meaningful economic agenda.  The indirect effect of the Fed’s trying to reduce unemployment, however, is low interest rates, essentially giving away money to the hanks and rich people on Wall Street.  This is partly because the Fed is an imperfect tool to reduce unemployment, especially when Congress is often working at cross purposes with it, which it is by enacting the sequester.

In addition, the banks have a huge, expensive lobbying effort to keep interest rates low and regulation to a minimum.  Corrupt Congressmen and Senators are happy to get their payoffs from the banks.  It’s a dirty business, but the bankers are getting rich chowing down at the government table of free goodies.

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