“The U.S. turned 234 years old yesterday, and yet over half of the nation’s money supply was created since Helicopter Ben took over the flight controls four years ago. No wonder gold is in a full fledged bull market . . .”
-David A. Rosenberg Chief Economist & Strategist
Gluskin Sheff + Associates Inc.
Most people still do not understand what was accomplished with the Bailouts. What helicopter Ben & Co. did — pouring trillions into the banking sector — served only to stave off a secular economic restructuring of the finance sector.
The can was kicked down the road, and their hope was the wild structurally imbalanced economy was allowed to persist.
By comparison, General Motors had gone down a path of bad management, poor products, lack of long term strategy. Their slide into bankruptcy was appropriate; it served to purge terrible management and awful business planning.
However, Banks were not allowed to suffer the fate that all insolvent businesses are supposed to. This was a terrible error, the greatest financial tragedy of the 21st century. That they were allowed to survive mostly intact is the result of the excess influence they have on a corruptible congress and a misguided Federal Reserve.
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