Are you
angry? It seems to me that those who are
not angry are blissfully ignorant of what is really going on. I have had readers of this blog complain that
my illumination of the truth tends to shatter their "reality." I am interested in helping people grow and
protect their wealth. One of the biggest
sources of risk to our wealth is our lack of financial education. That lack of education can be blamed on
primarily two reasons. The first is our
own laziness. However, that laziness is
exacerbated by the second reason: too much confusing and misleading
information.
We are
constantly bombarded with information about what we should be doing to
"invest" for retirement or college or how to finance a car etc. The problem is many times the information
that is being marketed to us is not the
whole truth. Let me give you an
example. It is a well known fact that a
significant portion of the profits for major car manufacturers comes from car
financing. Here is the question: How can a company make a profit on car
financing when the rate is 0.00%? The
answer is: they raise the price of the car to include the interest charges and
then say it is 0.00% financing.
The
sources of other misleading, or not complete information are endless. The media is one of the biggest sources. You always have to ask, how does the
commercial benefit the originator of the commercial? (Ask that about what I write as well.)
Recently
there was a surprised admission from “Too Big to
Fail" Wall
Street firm Bank of America, the American peasants are informed about a reality
with which they are all too familiar. That
the U.S. government and the Federal Reserve Bank bailed out the rich and
powerful, while leaving average citizens high and dry.
It always
amuses me when I come across a mainstream media headline to the effect of: “Why
are Americans still so angry?”
Why are
Americans so angry? Let’s see. Perhaps it’s because one of the greatest
heists in American history was just perpetrated against them by their own
government in collusion with the largest multi-national corporations and the
country’s most undemocratic institution, the Federal Reserve Bank. Are you angry? It seems to me that those who are not angry
are the very people I talked about above - financially uneducated.
Continuing
why Americans are angry; because not only were the individuals who caused
the most severe financial crisis in recent memory not punished for their
crimes, but they were showered with trillions and trillions of dollars in
bailouts and taxpayer backstops, and made far wealthier than they were before
the crisis they caused.
Because
99.99% of the population have been crushed by this policy of “socialism for
oligarchs” and they feel the intense pain of
this decent into poverty every single day of their live.
That’s
why Americans are still angry, and if more of them understood what actually
happened, they’d be much more angry. If I have anything to do
with it, there will be more American angry - or maybe better said thus: better
informed.
Moving
along, Bank of America essentially admitted the above in a recent research
report. As explained by Bloomberg:
Wall
Street is counting its winnings from seven years of easy money.
In a
report sent to clients on Sunday, Bank of America Corp. strategists totted up
the results of 606 global interest-rate cuts since the collapse of Lehman
Brothers Holdings Inc. and the $12.4 trillion of central bank asset purchases
following the rescue of Bear Stearns Cos.
The
results represent a clear victory for Wall Street over Main Street, according
to the team of Michael Hartnett, BofA’s chief investment strategist.
For every
job created in the U.S. this decade, companies spent $296,000 buying back their
stocks, according to the New York-based bank.
An
investment of $100 in a portfolio of stocks and bonds since the Federal Reserve
began quantitative easing would now be worth $205. Over the same time, a wage
of $100 has risen to just $114.
Zero rates and asset purchases of central banks have, thus far, proved
much more favorable to Wall Street, capitalists, shadow banks, ‘unicorns,’ and
so on than it has for Main Street, workers, savers, banks and the jobs market,”
the BofA team wrote.
My motivation? I want to help you help yourself. As I help you, I am helping myself. Plain and simple.
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