7 in 10 Americans Think Government Is For The Banks And Big Corps (Not The People) by smonebkyn


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									7 in 10 Americans Think Government Is For
The Banks And Big Corps (Not The People)
Zero Hedge
Sept. 20, 2013
72% of the poor and 71% of the
middle-class believe government
policies (fiscal and monetary) have
done little or nothing to help them. Of
course, this will be eschewed by the
academics (as Santelli recently
exclaimed regarding the arrogance of
the intellectuals) because “the people”
just don’t get it. But when 69% of all
Americans, according a new Pew
study, say large banks and financial
institutions have benefited the most
from post-recession government
policies; communications policies are
going badly awry. Despite a surging stock market, exploding home prices, and low rates spurring all
kinds of subprime auto loan exuberance, there has been little change in these perceptions since July
Via Pew Research,
      The public sees clear winners and losers as a result of the government’s economic
      policies following the recession that began in 2008.

In the public’s view, the beneficiaries of these policies are large banks and financial institutions,
large corporations and wealthy people…


      Sizable majorities say government policies have helped all three at least a fair amount
      – 69% say that about large banks and financial institutions, 67% large corporations and
      59% wealthy people.


      Roughly seven-in-ten say government policies have done little or nothing to help the
      poor (72%), the middle class (71%) and small businesses (67%).


      The public had a dim view of assistance that the government gave to banks and
      financial institutions during the recession, after the 2008 fiscal meltdown threatened
      many of them. A Feb. 2012 survey found that 52% of Americans thought bailing out the
      banks through the Troubled Asset Relief Program (TARP) was the wrong thing to do, while
     39% supported the action. That was a big turnaround from 2008 when the crisis hit in 2008
     and 57% had said TARP was the right thing to do.

Overall, 40% say that the job situation is the national economic issue that worries them most,
while somewhat fewer cite the budget deficit (24%) or rising prices (22%); just 10% say the condition
of the financial and housing markets is their top economic worry.

The belief that the U.S. economic system is no more secure today than it was before the financial crisis
is widely shared across demographic groups. There are partisan differences, however, with Democrats
more likely than Republicans or independents to say that the system is more secure.

Large majorities of Republicans (80%) and independents (68%) say the economic system is not more
secure than prior to the financial crisis. Democrats are divided: 51% say the system is more secure
today while 45% say it is not.
American Hedge Fund Manager: The
Federal Reserve Robbing From Poor To
Give To Rich
Sept. 20, 2013

The Federal Reserve isn't just
inflating markets but is shifting
a massive amount of wealth
from the middle class and poor
to the rich, according to
billionaire hedge fund manager
Stanley Druckenmiller.
In an interview on "Squawk Box,"
the founder of Duquesne Capital
said the Fed's policy of
quantitative easing was inflating
stocks and other assets held by
wealthy investors like himself.
But the price of making the rich
richer will be paid by future
"This is fantastic for every rich
person," he said Thursday, a day
after the Fed's stunning decision to
delay tightening its monetary
policy. "This is the biggest
redistribution of wealth from the middle class and the poor to the rich ever."
"Who owns assets—the rich, the billionaires. You think Warren Buffett hates this stuff? You think I hate
this stuff? I had a very good day yesterday."
Druckenmiller, whose net worth is estimated at more than $2 billion, said that the implication of the
Fed's policy is that the rich will spend their wealth and create jobs—essentially betting on "trickle-
down economics."
"I mean, maybe this trickle-down monetary policy that gives money to billionaires and hopefully we go
spend it is going to work," he said. "But it hasn't worked for five years."
The big debate
Economists and academics are divided on whether the Fed's policies have truly helped the rich at the
expense of the rest of America. Many point out that the policies have lowered interest rates for all
Americans, which have helped boost housing sales and values. They also say unemployment and the
economy would be a lot worse if the central bank didn't continue its huge monthly bond purchases.
Yet others say the policies have mainly juiced asset prices—and the wealthy hold most of the assets.
There is no reliable data on the wealth of the top 1 percent for the past two years, when markets have
surged. But as of 2010, the mean and median net worth of Americans was still down 50 percent from
the precrisis peak, mainly because of the decline in home values, according to Edward Wolff, an
economics professor at New York University.
(Read more: Druckenmiller: Fed just lost chance for a 'freebie' )
By contrast, the number of millionaires—households worth $1 million or more, including homes—hit
an all-time record in 2010, according to Wolff. Separate studies of millionaire populations from
Spectrem Group and Capgemini also show that the population of millionaires hit an all-time record in
The top 1 percent of Americans hold 35 percent of the nation's wealth—up slightly since 2007. The top
10 percent own more than 80 percent of all stocks and more than half of all individual financial assets
in the U.S., according to the Federal Reserve and Wolff.
1 percent gets 95 percent
A stream of new data on inequality also suggest that the gap between the wealthy and the nonwealthy is
growing, largely becaue of rising stock markets. New data from Emmanuel Saez, an economist at the
University of California at Berkeley, found that the top 1 percent captured 95 percent of the gains
during the recovery.
According to the Census Bureau, incomes for the middle class have largely remained flat while the
wealthy have gained. The
income top 10 percent earns
nearly 12 times as much as the
bottom 10 percent, up from a
little more than 10 percent in
A recent report from The
Associated Press found that
unemployment remains much
higher for the middle and
lower classes than for higher-
income groups. The wealth of
America's top 400 billionaires
grew by $300 billion in the past
year, hitting $2 trillion,
according to Forbes.
A study by the Bank of England
found that its quantitative easing
policies—akin to the Fed's—
were mainly helping the wealthy. It found that 40 percent of the gains from easing went to the top 5
percent of British households.
(Read more: 400 richest Americans now worth $2 trillion)
Economist Anthony Randazzo of the Reason Foundation wrote last year that QE "is fundamentally a
regressive redistribution program that has been boosting wealth for those already engaged in the
financial sector or those who already own homes, but passing little along to the rest of the economy. It
is a primary driver of income inequality."
And then there's Donald Trump—not usually one for distributional analyses of monetary policy. He
said on CNBC last year that "people like me will benefit from this."
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