Most of us are still struggling to figure out when exactly we are going to see the benefits of the 2009 government Stimulus package. Economic recovery and job creation are starting to sound like broken promises to a state like North Carolina which has had one of the most consistently high unemployment rates in the Nation.
So who’s really benefited from the Stimulus?
“The easiest and most profitable risk-adjusted trade available for the banks is to borrow billions from the Fed — at a cost of around half a percentage point — and then to lend the money back to the U.S. Treasury at yields of around 3 percent, or higher, a moment later. The imbedded profit — of some 2.5 percentage points — is an outright and ongoing gift from American taxpayers to Wall Street. You’re welcome.”
Americans are cutting back, while Wall Street is pocketing the profits. And it’s all thanks to the Government’s rescue efforts. Doesn’t really come as any sort of surprise, I’m sure …