It's going to get worse. The reason for that is because they aren't doing the right things. Only unselfish things are going to work.
To date, the powers that be are still very much focused upon doing what is seen by the superrich as best for the superrich. However, what they see as best for them is terrible for everyone and everything else and terrible for them only they're blinded by greed.
The Federal Reserve has been trading newly printed U.S. Treasuries for total garbage to the tune so far of $850 billion. They have been buying back junk mortgage loans from foreigners that have not been written down. Those foreigners have been accepting Treasuries in return. The American tax payer therefore is trading the debts of home owners for the debts of all of us whether or not we own any property. Renters are now being saddled.
How is this? Well, Treasuries are the debts of the U.S. government. They are loans in the forms of bonds. Those bonds accrue interest for the bond holders. It's just money printed up by the Federal Reserve without anyone seeing anything in the news about it.
Did you want to buy back junk mortgages from foreign governments that those governments bought from the Wall Street sharks? I don't think so.
Am I suggesting that the U.S. should be disinterested in the welfare of foreign countries? No, I am not. There simply are much better ways of handling the whole fabricated so-called crisis that is a scam to transfer wealth from tax payers to the superrich.
Anyway, $700 billion plus the $150 billion Congress put on top of it plus the $850 billion the Fed has pumped out so far doesn't even put a dent in the problem. The reason for that is because this is all chasing after bad money. The old adage goes, "Don't throw good money after bad."
What is the real money or "good" money here? It's labor. Work that produces goods and services that are vastly more tangible than the financial so-called services that the Wall Street investment banks have been fabricating now for decades is the real value, in the worldly sense anyway.
Where should the energies be going? The real energies should be going directly to the basic necessities and quality-of-life issues, including environmental. Throwing energies at smoke and mirrors is ruination.
The only thing that can possibly happen other than the New Deal times ten is that the people go back into a trance and buy into the boom that will lead to deregulation again and then the bust where the superrich just consolidate even more.
Now, whom do you trust?
An important article for you to read and probably re-read:
By MICHAEL HUDSON
October 13, 2008