Willie Sutton once explained that the reason he robbed banks was because "that's where the money is." The man knew what he was talking about. Remember when we bailed out the banks? Yes, and remember the REASON we were told we had to bail out the banks? We had to bail out the banks, we were told, so that the banks could keep lending to American businesses. Without that lending, we were told, society would collapse... So, did the banks keep lending? Um, no. Bank lending dropped sharply, and it has yet to recover. So, what have banks been doing since 2007 if not lending money to American companies? Lending money to America's government! By buying risk-free Treasury bonds and other government-guaranteed securities.
And, remarkably, they've also been collecting interest on money they are NOT lending—the "excess reserves" they have at the Fed. Back in the financial crisis, the Fed decided to help bail out the banks by paying them interest on this money that they're not lending. And they're happily still collecting it. (It's AWESOME to be a bank.) Meanwhile, of course, the banks are able to borrow money FOR FREE. Because the Fed has slashed rates to basically zero. And the banks have slashed the rates they pay on deposits to basically zero. So they can have all the money they want—for nearly free!
When you can borrow money for nothing, and lend it back to the government risk-free for a few percentage points, you can COIN MONEY. And the banks are doing that. According to IRA, the "net interest margin" made by US banks in the first six months of this year is $211 Billion. Nice! And that has helped produce $58 billion of profit in the first six months of the year. And it has helped generate near-record financial sector profits—while the rest of the country struggles with its 9% unemployment rate.
And these profits are getting back toward a record as a percentage of all corporate profits. And those profits, of course, are AFTER the banks have paid their bankers. And it's still great to be a banker. The average banker in New York City made $361,330 in 2010. Not bad! This average Wall Street salary was 6X the average private-sector salary (which, in turn, is actually lower than the average government salary, but that's a different issue). So it REALLY doesn't suck to be a banker.
What Occupy Wall Street is about plus data behind the movement!
Everyone works hard not to get cheated out of their fair share. In the past 30 years, due to gains in technology, productivity rose but salaries when adjusted for inflation decreased for the middle class. The extra wealth accumulated at the top 1%. They then use that wealth to influence politicians and get bailouts and all sorts of other favors. When wealth that is concentrated in the hands of a few is one of the main influences in politics then society is no longer a democracy it is a plutocracy. That is what the protest is about. We all work hard and we all want to be treated fairly and we want the rule of law to be restored such that it applies to everyone in society and that the wealthy are not exempt from their actions. Corporations are needed; unethical behavior and corruption aren't needed.
Complete album of all the data seen below: http://imgur.com/a/U4FR4
#OccupyWallStreet, OWS, Occupy Wall Street, Elizabeth Warren, News, Politics, Wall Street, New York Stock Exchange, Recession, The Fed, Taxes, Crisis, Economy, Federal Reserve, Revolution, Demonstration, Protest, Occupy America, Corporations
And, remarkably, they've also been collecting interest on money they are NOT lending—the "excess reserves" they have at the Fed. Back in the financial crisis, the Fed decided to help bail out the banks by paying them interest on this money that they're not lending. And they're happily still collecting it. (It's AWESOME to be a bank.) Meanwhile, of course, the banks are able to borrow money FOR FREE. Because the Fed has slashed rates to basically zero. And the banks have slashed the rates they pay on deposits to basically zero. So they can have all the money they want—for nearly free!
When you can borrow money for nothing, and lend it back to the government risk-free for a few percentage points, you can COIN MONEY. And the banks are doing that. According to IRA, the "net interest margin" made by US banks in the first six months of this year is $211 Billion. Nice! And that has helped produce $58 billion of profit in the first six months of the year. And it has helped generate near-record financial sector profits—while the rest of the country struggles with its 9% unemployment rate.
And these profits are getting back toward a record as a percentage of all corporate profits. And those profits, of course, are AFTER the banks have paid their bankers. And it's still great to be a banker. The average banker in New York City made $361,330 in 2010. Not bad! This average Wall Street salary was 6X the average private-sector salary (which, in turn, is actually lower than the average government salary, but that's a different issue). So it REALLY doesn't suck to be a banker.
What Occupy Wall Street is about plus data behind the movement!
Everyone works hard not to get cheated out of their fair share. In the past 30 years, due to gains in technology, productivity rose but salaries when adjusted for inflation decreased for the middle class. The extra wealth accumulated at the top 1%. They then use that wealth to influence politicians and get bailouts and all sorts of other favors. When wealth that is concentrated in the hands of a few is one of the main influences in politics then society is no longer a democracy it is a plutocracy. That is what the protest is about. We all work hard and we all want to be treated fairly and we want the rule of law to be restored such that it applies to everyone in society and that the wealthy are not exempt from their actions. Corporations are needed; unethical behavior and corruption aren't needed.
Complete album of all the data seen below: http://imgur.com/a/U4FR4
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