And craze it is - socialism has never worked. From economist Mike Shedlock writing at Mish Talk:
Ben Bernanke - The Father of Extreme US Socialism
Writer David McWilliams penned an excellent article in the Financial Times: Quantitative Easing was the Father of Millennial Socialism.
McWilliams notes that Fed chairman Ben Bernanke's "cash for trash" QE scheme drove up asset prices and bailed out the baby boomers. The cost of course, was pricing millennials out of the housing market.
Unorthodox policy penalizes the asset poor
What assets do millennials have? Hardly any. Instead they are saddled with mountains of student debt which, thanks to president George W. Bush, could no longer be discharged in bankruptcy.
The Bankruptcy Reform Act of 2005 would have better been called the Debt Slave Act of 2005.
Then, when the Great Financial Crisis hit, the Fed came along bailed out the banks, bailed out the bondholders, bailed out Fannie Mae, and bailed out the asset holders in general, leaving millennials mired in debt unable to afford a house.
Simmering Stew of Anger
The irony in this simmering stew of anger is people blame Trump, not the Fed.
But socialism, even AOC's radical socialism is not about Trump, at least directly.
More at the site - very good analysis of one of the biggest clusterfscks in our economy. Bernanke has managed to keep his name clear of the mud but his policies are what caused the great recession of 2008 and are what is driving the horrendous "real" inflation we are seeing today.
Leave a comment