Saturday, January 26, 2013

Chart Of The Day: Bankster Profits Per Employed Worker

Chart Of The Day: Bankster Profits Per CapitaThis chart is very telling. It shows that, since Greenspan began the Fed tradition of "juicing" the economy by indiscriminately pumping liquidity in the late 1990's, financial sector profits per employed worker has skyrocketed, only dipping briefly during the Great Recession. But Bernanke was on the case: he quickly reversed the downward trend by embarking upon a historic foray into money printing with QE1 in December 2008. And then, immediately, financial sector profits recovered, despite the rest of the country continuing to sink in economic quicksand.

Chart Of The Day: Bankster Profits Per Capita - profit chart

Correlating almost perfectly with easy money dished out from the Fed, the trendline of financial profits per employed worker has been at about a 70% angle since 1999. Clearly, the Fed's primary mandate is looking out for its financial sector cronies.

Also of note from 1999: the repeal of Glass-Steagall, which enabled banks to leverage the liquidity the Fed began pumping like a fire hose.

Of course, indiscriminately pumping liquidity comes at a cost for us peons. Burst bubbles result in high unemployment and reduced economic activity.


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