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The Equity Markets continue to roll gradually upward.. on auto pilot... without a meaningful correction.. as we are in the "sweet spot" of the Obama Administration/Fed-Tsy Dept's economic recovery... at a very poor 2 to 2 1/2 percent average annual "recovery" GDP growth rate... while we are borrowing 8% + of GDP in order to fill the holes normally taken care of by increases in private economic recovery activity... so we can try.. and I emphasize try.. to maintain that piss poor and largely fictitious 2 to 2 1/2% GDP growth rate. Normally 5%+ GDP growth would be expected during a strong economic recovery.
We are borrowing approximately 4 times the amount we are "growing" economically each year... money we don't have... from China or whoever will still buy our debt paper.. most of them have over-weighted dollar reserve allocations already... and when that doesn't work.. we buy it ourselves.. by creating dollars.. out of thin air. This has been going on very aggressively since 2009.. and a majority of our elected Federal officials support and defend this activity... because in the final analysis.. they are deer in the headlights.. with no clue, collectively, what to do in order to stop it.. in a manner that allows them to retain their position and power. And.. by the way.. "we", as voters, allow them to continue down this path... because.. ?
There is no, nor will there be in the foreseeable future, any "real" economic recovery in realistic terms (GDP & job growth etc.).
There does exist a somewhat successful attempt to "stabilize" the US economy by forcing low earning capital into risk asset classes (equity markets, selected commodities etc., and to a very limited degree, residential real estate) because, by design, there are no realistic or legal (with regard to pension funds etc.) alternatives. This has provided the Administration/Fed-Tsy with their singular "quantifiable" success since the Housing/Debt bubble burst.. that being to make sure the stock market goes up... because if peoples' 401k's/personal investments and insurance company portfolios/corporate pension accounts etc.. get destroyed... the goose is not just cooked.. it's pretty well carbonized when combined with very large decreases in home values.
Additional "economic recovery" activities included subsidizing state budgets with borrowed/created Federal dollars in the form of unemployment insurance payments and other Federal grants.. like protecting union jobs (teachers etc.) and misguided efforts to promote economic growth.. like throwing $90 Billion down the shitter with Solyndra and other "alternative energy" projects evaluated, promoted and invested in by your Federal Government as directed by the Obama Administration. Please note the lack of pro-growth economic policies and tax reform etc., in the "economic recovery" mix... just moving bad private and corporate debt onto the Federal balance sheet via newly "created" dollars... with zip, zero, nada policy changes to promote actual, real economic growth.
In addition to making sure that the equity markets recovered.. and not only recovered but in some cases major indices have recently made not only new recovery highs but also new all time highs.. one of the other primary objectives of the Fed/Tsy [Treasury - Editor's Note] "economic recovery" program was to stabilize/re-capitalize the banking system... not only domestically.. but providing assistance to foreign central banks as well. This was/is "justified" because foreign markets provide one of the few avenues of growth available to American corporations... as long as the dollar remains comparatively weak making our products and services attractive and price competitive.. and you just can't have the whole thing on both sides of the Atlantic swirling down the shitter bowl at the same time.
The major "Money Center" banks are still the primary holders ...
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