FedUpUSA

Bernanke ROBS Pension Funds And People

Robber Ben Bernanke

That would be the correct headline:

America’s companies, from Apple Inc. (AAPL) to Verizon Communications Inc., are saving about $700 billion in interest payments with the Federal Reserve’s unprecedented stimulus.

Corporate bond yields over the past four years have fallen to an average of 4.6 percent from 6.14 percent in the five years before Lehman Brothers Holdings Inc.’s demise, a savings equal to $15.4 million annually per every $1 billion borrowed. Businesses took advantage of the Fed’s largesse to lock in record low rates, extend maturities and raise cash by selling $5.16 trillion of bonds, data compiled by Bloomberg show.

He “saved” nobody anything — he has basically transferred $700 billion from pension funds (that’s you, middle-class America) to these firms and has done so, effectively, at gunpoint.

The idea that someone “saves” when borrowing is not only wrong it’s an intentional falsehood  — a lie.  When rates go down the people who do the lending make less in exactly identical amounts to the companies that pay less.

Since the holders of these long-term debt instruments tend to be pension funds, the person who takes it up the butt as a consequence of these policies is you, the middle-class American consumer.

Make sure you say “Thanks Ben” for the sexing — after all, since you’re consenting it certainly isn’t rape.

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Additional commentary:  I’d like to point out that THE ABOVE is why the middle class is being destroyed.  In other words, why the rich keep getting richer and the poor keep getting poorer.  This has absolutely NOTHING to do with minimum wage.   Assertion that minimum wage laws are inadequate seems to be the topic of the day and being discussed even by the most unlikely of people.  The problem is, these people have absolutely no understanding of economics.

campbell-sister-simone-cbsdenver

Campbell says the numbers show that in the past 30 years – those on the lower rung of the ladder have lost seven percent of their income while the rich get increasingly richer.

While this is true, what she needs to do is ask what happened during those 30 years.  It certainly wasn’t that we had no minimum wage increases over that time.  We most certainly did.  Some of the largest ones in history as a matter of fact.  Did it help?  No, it didn’t.

“When you keep putting band-aids on people’s wounds don’t you think you should try to figure out why they are being wounded? Shouldn’t we try to change the policies?” she asked.

Yes, Sister, we most certainly should, and so should YOU!   Before you manage to get a whole bunch of people focused on the wrong solution, which didn’t work before, and will not work yet again, you might want to educate yourself on exactly how our government’s monetary policy, carried out by the Federal Reserve is to blame for the ever-growing disparity between rich and poor.  Stopping these destructive policies once and for all is something that could certainly benefit from a little act of G-d.

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