The Silver Lining
Is there a silver lining in all this stock market chaos? In the midst of all this market destruction there is a realignment taking place that is not all that bad. In fact a lot of it is quite good. To the contrary there is nothing good about losing money in your 401k, but what is happening in the economy right now parallels the changes that are going on in politics. What appears to be happening is a decentralization of power, from the well connected insiders to the small independent outsider. The well connected corporate insiders, those that have been gorging themselves on bailouts and special deals, are losing power and capital, while the majority of the small unincorporated business are getting ready to take off.
In all of this, the Tea Party and Congress have pledged themselves to end the bailouts to the big guys while making life easier for the small entrepreneurs. While the small business are the ones that are doing most of the hiring in this country, life is still very tough for small businesses. However, the President appears to still favor his corporate fat cat friends who are hooked on the idea that corporate statism or state corporatism is the best way to manipulate the economy.
It is these ideas that will have to change and may be in the process of doing so. Particularly since Obama’s manipulations have failed to produce the jobs and growth that he promised. So as bad as things are in the economy and the stock markets around the world, could we be on the verge of an economic renascence of sorts in this country? Only time will tell.
So, How much money has the government given away to Wall Street since 2008?
$9.1 Trillion from the Federal Government
$2.5 Trillion from the Treasury
$1.5 Trillion from the FDIC
$1.4 Trillion from a joint effort from the FDIC, Treasury, and Government
+ $300 Billion from a Housing Bill, which was primarily pork barrel legislation
That’s more than twice every war that the United States has waged in its lifetime, combined.
Source: It Takes a Pillage; Behind the Bailouts, Bonuses, and Backroom Deals from Washington to Wall Street by Nomi Prins