economic recovery 2013
The problem with the U.S. government's stimulus efforts to create jobs, and the Federal Reserve's quantitative easing to foster full employment, is that banks are the only direct beneficiaries.
There's just no good pool of jobs being formed from the trickle-down effect that first bathes bankers in bonuses, and then showers shareholders with buybacks and dividends.
There is a better way.
And, in spite of the details which additionally involve two necessary but minor structural changes that can be accomplished with the stroke of a pen, there are only two primary steps we need to take to create good-paying, long-term jobs and crank up economic growth.
Step 1 to Growth and Better Jobs
This Chart Shows the Economic Recovery is Mainly for the Rich
If you thought Americans were better off financially than a few years ago, the following chart shows that's not the case for most of us.
Instead, it looks like an economic recovery for the rich.
Forget the Doom-and-Gloom, Now Is a Time to Be Bullish
A little girl named Carol Anne became famous for saying "They're h-e-r-e" in the 1982 movie Poltergeist.
She was talking about the "TV people," and they ended up being from way out of town.
Well, we have our equivalent digital denizens, and they're also returning in force. Except ours are largely from the investment shadows, awaiting the next opportunity to brandish heavy fear tactics to convince you the energy market is about to collapse...again.
It makes me want to shout, "They're b-a-a-c-k!"
It is enough to prompt a recall of that old saw about market analysts.
You know, the one that says they have correctly predicted eight of the last three recessions.
At issue this time is the latest financial obstacle the market must overcome: the sequestration scheduled to hit a week from today. Now the draconian cuts will occur automatically, although it will also take some time for them to have any impact.
Most will not result in anything significant for at least a month.
Of course, the markets are not going to wait that long. For the past two days, the first wave of nail biting started. It will get worse as our darling Congressmen return from their well-earned (satire here folks, satire) vacation to play politics instead of reaching an agreement.
After this, we will get back to business. We can ignore those talking heads for one major reason.