I have long argued that the current “recovery” is only in name, as unemployment has continued higher and any worthwhile economist will tell you that there is no such thing as a jobless recovery. The mirage of a recovery is a short-term phenomenon created by handing the banks Trillions of dollars as well as accounting trickery which allows banks to hide and understate their losses.
It is a glaring disconnect, as Wall Street recovers and generates billions in profits, paying itself millions in bonuses, while around 20% of the American workforce is either unemployed or underemployed. This is Depression-era unemployment with wages declining, foreclosures skyrocketing and working families worried about how to pay the bills. The middle class today is in desperate shape as the gap between the wealthy and everyone else is growing wider.
In the video below, Max Keiser, while sometimes making extreme analogies, runs all over a young bank apologist that continues spewing nonsense that he can’t back up. The key takeaways:
* The banks are engaged in accounting fraud, cooking the books and stealing taxpayer money
* Banks are simply hording the cash and keeping their losses in undisclosed accounts, not providing liquidity
* The banks will come back to Congress next year, demanding another bailout
* Bankers on Wall Street are the equivalent of suicide bombers or financial terrorists threatening to blow up the economy if Congress does not hand them trillions of dollars
* Other countries like Russia and China aren’t buying it, as they are dumping dollars and buying gold
* The housing market has not bottomed, as delinquencies and foreclosures are skyrocketing