The banks assume that the wealth transfer from America's middle class to them can continue indefinitely, so they want to feed some of that ill-gotten gain back to shareholders. The truth is that the "recovery" is built on borrowed stimulus. When the stimulus goes, so does the recovery. And thanks to the stimulus, the economy is in worse shape than it would have been without it, because it responded to it like it was a legitimate source of growth. We are looking at tremendous restructuring that needs to take place in order to wean off chronic government stimulus. The longer we wait, the more we borrow and spend, the worse it will be when we face reality.
Fed Tells Banks to Stress-Test Capital for Recession With 11% Unemployment - Bloomberg: www.bloomberg.com/news/2011-02-17/fed-tells-banks-....html
http://chum.ly/n/6ca5c9
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