Trickle down economics doesn't work. But the worlds central banks insist on giving money to the big banks in the hope they will loan it out. Banks are in business to make money. They are not in the business of giving people jobs, or helping an economy grow. Unless they can make money on the loans they make. And loans mean more debt for the debtors.
The head of the ECB wants to give the big banks more money.
Politics being what it is around the world, with the Tea Party mentality that has been promoted by the right wing capitalists it is politically impossible to just give the money to those at the bottom of an economy. So why we can't just take these trillions of moneys and build roads and bridges and improve our parks and our common areas is beyond me. That would be an investment in the nations peoples. And they would spend the money, and then perhaps they would take out that home loan.
But we can't do that! That would be more government debt!!! And all of those people put to work would pay taxes and the loans that banks made to those same people with jobs would expand the money supply. But NO, we can't do that!
So, the slightest hint that a central bank is set to pull back on the cheap money causes the financial assets that were artificially inflated to collapse. And we are back where we started.
gh
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