Philip Gvinter

Asset Reflation Does Not Signal Recovery for U.S.'s Collapsed Economy

I agree with all of the point made above but would like to add one important aspect of the current events which seems to have been overlooked.

One of the cornerstones of American capitalism was the separation of banking from commerce. This principle is of utmost importance in any free market economy which has a central bank and a banking cartel. This separation was broken with the Citi Corp - Travelers merger and has been further eroded with the conversion of Goldman and Morgan into bank holding companies and the mergers of BofA and Merrill. The banking cartel is now being run by investment bankers, who are really commercial entities tied loosely to the financial system. This perversion of our capitalist system and the new status of the investment bankers who by their nature are gamblers and advisors rather than bankers, as systemically important and above the rules applied to all other capitalist entities has caused an acceleration of the distortion caused by Fed interference. A Fed owned by the bankers is a necessary evil, a Fed owned by Wall St. is a quick path to utter systemic failure.