I'm no genius and I have heard and read a few things about "the economy" that I frankly just don't quite get or understand the ramifications of. Here is my list of "Forrest Gump" type questions that I would appreciate any answers for.
1. The Fed and "free money" for the banks.
Is it true that the Federal Reserve is giving money to the banks essentially for free and then they(the banks) turn around and buy TBills and the government PAYS them interest for money they loaned them in the first place?
Does this free money to the banks mean that the banks have no need to attract consumer deposits and therefore could care less if you deposit money with them or not - hence the next to nothing CD rates?
I noticed yesterday that the Mellon Bank was going to CHARGE large depositors putting in more than 50 million in deposits with them. Why do the banks hate money nowadays?
2. Where's all the negative real estate equity? Whose books is it sitting in? When will it finally be accounted for?
3. I once read that Credit Default Swaps, due to leverage, were on the hook for more money than exists in the world. Who can take a financial system seriously if this is true. How could one type of financial instrument that is inherently limited to the uber rich be allowed to vacuum up the world's monetary supply?
4. How come the price of gasoline at the pump seems to have little or no correlation to the price of a barrel of oil and just stays permanently high and no one even talks about it anymore?
5. How did everyone in America decide that combined cable/phone/and internet bills of 200 a month were anything close to reasonable PLUS then add a cellphone. Why do older people cling to landlines? What do people pay in Europe for Internet service and cell phones?
6. In the same vein, why do we pay more for health insurance than any other country and just accept that we have to finance the gazillion dollar salaries and bonuses of the CEOs of the insurers. Why would any American feel that was a fair trade for their insurance dollar? Why do the President and the Dems enshrine it into law?
7. Why isn't American Business, both large and small jumping up and down for single payer health when health benefits are the biggest drains on their bottom lines and keeps them from being competitive in world markets? Not to mention the money that would be freed up for expansion, R&D, dividends and the like?
8. Why don't unions push for single payer? Then more money could be paid out for better wages, retirement pay, etc.? .
9. How is it possible that a "minimum" wage can be considered a "minimum" wage if it is never tied to inflation? Doesn't it quickly become a "sub-minimum" wage?
10. How do Americans afford anything when their wages have been stagnant for decades and the price of everything has gone up and up? Has your standard of living dropped in the last few years?