More on Ben's Op Ed

Re-read the paragraph I quoted in the previous post. In describing a "virtuous circle" he is confident he can achieve, Ben said:

For example, lower mortgage rates will make housing more affordable and allow more homeowners to refinance. Lower corporate bond rates will encourage investment. And higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending. Increased spending will lead to higher incomes and profits that, in a virtuous circle, will further support economic expansion.

Does he mention ANYTHING about EMPLOYMENT here?

Hell No.

My conclusion therefore, is that the "consumer" whose wealth will increase by higher stock prices is one and the same as the one who will issue corporate bonds at lower rates - whether as the management of the issuing corporations (you can bet they are not mom and pop shops) or as the management of Wall Street banks that will underwrite the bonds. Money raised by bond issuance will be spent on stock repurchase, to boost their company shares even more. They may occasionally fling a scrap to the rest of us, who will need to spend to buy food and gas and shelter. That will lead to higher incomes and profits for the large corporations and banks, and that will be considered economic expansion.

Ben and his "consumer" take us for fools. Obama doesn't care as long as he gets to fly to his billion dollar vacation aka state visits to Asia to greet the adoring crowd, Congress either doesn't care or hasn't a clue.

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