The Federal Reserve’s elaborate financial charade on the American people – Big banks hold excess reserves that represent 10 percent of U.S. GDP. Federal Reserve has failed on largest goals for our economy.

MyBudget360.com
May 20, 2011

The antics of our Federal Reserve rival those of the now disgraced IMF chief although they won’t grab as many gossip headlines.  The Federal Reserve has fashioned a system that has allowed economic bubbles to surface every very few years like high school reunions.  Bubbles are not normal.  These are financial disequilibrium events that occur simply because excess money is flowing through the system. 

The housing bubble was the perfect example of what happens when a central bank does not mind its own store.  The Federal Reserve, our central bank and supposed expert on all things money, sought to protect the banking system at all costs during this recent crisis. 

It is amazing how the actions conducted by the Fed were never fully scrutinized in the media thoroughly even though this is where most of the money was funneled.  It was simply assumed that the trillions of dollars in loans, purchases, and accounting chicanery that went to the largest banks was somehow the perfect way to avoid a crisis.  Who really avoided the crisis here?  The working and middle class is still disappearing.  Yet the large Wall Street banks are back to their profitable ways since they figured out that the best thing for business is a crisis. 

These banks (just like the Fed) have little desire to help the American public even though they are only standing because of the power of the people.
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