The market keeps going up so things are good right?
The Fed and its apologists keep pointing to the S&P arguing that all the Federal Reserve nonsense, all the voodoo (real voodoo economics), all the “bond buying,” all the QE has worked.
They point out that the official jobless rate has gone down from 10% at the peak to just over 6% now. They also argue that inflation is low. Happy days all engineered by the Fed.
The problem is that most of the gains in the market have gone to the investment houses while everyday people have begun falling behind due to some form of stealth inflation which the Fed doesn’t seem to see. Everyday people are also falling behind because the Fed keeps rates below the market rate creating a situation where savers have no hope of keeping up. Just wait until we see inflation which can’t be explained away.
As for the jobless number, the most important factor in it coming down has not been the growth of jobs, especially in full time jobs. No, it’s because people have given up looking for work. I live in a fairly nice neighborhood in a pleasant university town near Washington DC (the wealthiest metro area in the US by far) and just off the top of my head I can think of 3 neighbors, all professionals, who have been out of work for over 2 years. I talk to people all over who see similar things in their neighborhoods.
But the Federal Reserve and the White House insist that everything is okay. What else are they going to say? If they tell the truth the whole thing comes crashing down. Especially for the investment houses which are the primary clients of the Fed.
And as the CNBC anchor says the Jury is still out on whether the Fed should pull back, Santelli explodes… who is “judging” the success… not America’s jobless or hordes of part-time workers… Liesman jibes “it’s impossible for you to have been more wrong” but as the chart above shows… Santelli was entirely correct – the Fed did nothing for the people…