Between 2001 and 2006 the Federal Reserve greatly expanded the US money supply.
Most of the money went into residential and commercial real estate, triggering the biggest boom-bust cycle in history.
The fact is that without the Federal Reserve’s expansionary monetary policy after 2001, we would not have had a housing bubble to the same extent. The Federal Reserve’s policies basically encouraged sub-prime lending.
$6 trillion dollars that flowed into housing in the boom is still circulating in regional and local banks as the graph above illustrates. The bust, our current economy, is the process of getting rid of the overproduction in housing.
The mistake by the Fed and this government was to transfer the private debt created by the bust to public debt with borrowed money.
When will the money flow into employment?
It is the interest of the working man with which we must be concerned, when the American people work, save and invest, America prospers!
… knowledge is the only true safeguard of liberty
Please make a donation to the Eric LaMont Gregory for US Senate Campaign and let's bring back jobs to the Ohio we love