"Then?" Yes, back during the downfall of finance. Those who play were sweating (many took their balls home as they knew the games were crooked and wanted to keep their cookies). Some lost a lot of money. For the most? It has been difficult for those whose lot is not to hold oodles of money; the FED has not made it any easier, since it is oriented toward making sure that the bankers get their take.
Take? Yes, in the sense of those running the game have guaranteed income (some might say, pilfering - note, I said some and did not say I said).
"Now?" We have to wait to see what Yellen will do. In the meantime, let's compare Ben's position. The image is a snap from a July 2009 article. It reports that Ben lost a bit due to the downturn. Notice that his wealth went from $2M to $1M (thereabouts, more on that below).That was 2009. Now, fast forward to 2014. A search now will show that Ben is worth $2M+, again. But, he's also in the position to rake it in. There's a book coming. He made $0.25M, at one talk, it is reported. So, expect his new wealth to go up dramatically.
That has been the normal state of affairs. After all, does he not need his rewards for being in a crummy government office (actually, wood trimmed) for so many years and for being driven around by the likes of government workers? And, is there not an open door into which the moneyed sashay into government work (many of them with the expectation of the rewards ex post facto?)?
Except, Ben started to slap the savers silly about this time; that torture has not abated. The savers? Who are those? In one sense, they're part of the whole lot that do not find themselves in the situation of getting while the getting is good (not that I'm saying that Ben is thusly positioned). In another sense, they are the ones who want a sustainable economy.
Ben? Some say that he left a toxic situation; he did roll the printing presses day and night, it seems; ah, need we do the litany, again?
---
Now, we could talk paper wealth and all that. You see, not everyone could sell out of the market and get their money. Granted, many do pull out enormous amounts. Ever notice how small that set is, comparatively?
But, there is real wealth. That it seems to concentrate into the hands of the few is a natural phenomenon. That world views (I could talk this with our guy) have emerged that could make a sustainable economy is well known. Yet, these, for the most part, are not given much attention.
Then, there is the wholesome view of wealth that many know is shortchanged as all seem to clamor after the chimera.
Remarks: Modified: 03/06/2014
03/06/2014 -- For everyone who is ga-ga about the chimeras' rise (any one of them) on the backs of the taxpayers (Ben's and Janet's huge balance sheet, plus issues of near-zero being ignored), please consider this tale:
| Call it, slapping savers more than silly. Ben made $250K with about 40 minutes of work (well, there was travel - he didn't pay - and preparation - he's using his notes from the past decade). That is equivalent to what he caused TWO savers to lose (give or take) with his policy (let's say they have 500K, each, in their savings for retirement purposes) over the past five years (give or take). And, that is a $100K+ loss for each saver which can be (is, in this case) figured with a very conservative interest rate differential (make this delta a little more reasonable, and the losses are indeed tragic). ... Not get the message? Let's save 20 savers with $50K each. ... The real tragedy? Ben has, as well, pushed US Savings Bonds (like you would expect the moms and pops to buy -- or, a patriot, got it?) returns down to minuscule amounts that are an insult in many senses and laughable in others. Thanks, big guy. You did the savers a lot of favors. ... More of this type of analysis will follow (we can all hope that Janet comes to her senses). |
No comments:
Post a Comment