Thursday, November 04, 2010

Priorities

Yesterday, after all the midterm election hullabaloo, the Fed released 600 BILLION dollars in funds to buy long term treasuries. This is quantitative easing, a way to keep interest rates low for large institutions that want to borrow money during a time of rising inflation.

Now with little fanfare, and no political fight, 600 BILLION bucks just made its way into the economy that wasn't there before. It will have no tangible benefit for you or me or any of the bottom 80 percent. If we were capable of borrowing money right now, we would probably be hit with killer interest rates.

At the same time, unemployment benefits are running out this week for thousands, tens of thousands, many many Americans. One of my dearest friends called me panicked last night. You could here the pale fear in her voice. If I can scrounge the $, I'm bringing her wine tonight and getting her good and drunk. I told her we can all live in the park together, or we'll go squat in some of the empty, newly built, luxury condos that can't be sold.

600 billion would go a long way towards housing, feeding, and employing those of us in the bottom 80. But we are not a priority.

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