Tuesday, October 12, 2010

Ben Bernanke Money Printing Ends Up as Wall Street Bonuses
WSJ is reporting that bonuses on Wall Street this year are expected to be around $144 billion. How big is that relative to the overall economy?

ZeroHedge cranked out the numbers and it is 8% of the total money supply (as measured by M1). Got that? Investment bankers will control 8% of the entire money supply once bonuses are paid.

Now, there is nothing wrong with bankers earning good change as a result of dealmaking, but a good portion of the bonuses are the result of money being shoveled to bankers by Fed Chairman Ben Bernanke. Where's Bernanke getting the money to shovel to Wall Street? Why he is just printing it, that's what he does.

Over the last three months, M1 money supply has increased by 9.1% on an annualized basis. Got that? Investment bankers will get bonuses of 8% of the money supply, Bernanke is increasing the money supply at just over that amount. There is no better evidence that it is the crony part of Wall Street that is benefiting from Federal Reserve activities, and no one else.

Talk about a distorted manipulated economy, it doesn't get much uglier than this