A decade on…..and counting.
Remember those days….the economic crash caused by banks playing loose and fast with accounts and trickery…..it all came back to bite them in the ass and we all then decided that banks need to be watched and regulated for the protection of our cash held by them.
For awhile it look good…it looked like we would do what needed doing to make goddamn sure that this could never happen again……and then the big banks started their assault on the people that would control their thievery and then we elected a tool of big capital and most of the regs are being pushed back….and history will be repeated…but while we wait for the next “market correction”…….
A few years ago, one of Karen Petrou’s banking clients gave her an unusual assignment: It wanted her to write a paper laying out “the unintended consequences of the post-financial-crisis capital framework.” Petrou is the co-founder of Federal Financial Analytics Inc., a financial services consulting firm in Washington that focuses on public policy and regulatory issues. She is also, as the American Banker once described her, “the sharpest mind analyzing banking policy today — maybe ever.” Whenever I’m writing about banking issues, she’s the first person I call.
Writing that paper caused Petrou to ask a question she’d never really considered before: Did the bank regulations enacted after the 2008 crisis — along with the Federal Reserve’s post-crisis monetary policy — exacerbate income inequality? Her answer, which she laid out in a series of blog posts, as well as a lecture at the New York Federal Reserve in March, was yes. “Post-crisis monetary and regulatory policy had an unintended but nonetheless dramatic impact on the income and wealth divides,” she wrote recently.
While the nation is focused on Russia and whether they are bad players on the world stage….the inequality in this country grows with every economic report and NO ONE cares….instead they will slobber over slogans and BS and a promise of better days and yet those days are getting further and further away for most in the middle class.
This recovery has not been great for workers. They have seen modest real wage gains over the last five years, but these gains have not come close to making up the ground lost in the recession and the first years of the recovery.
Nonetheless, real wages have been growing for most of the last five years. The last month has been an exception to this pattern, not because nominal wages have grown less, but because we had a large jump in energy prices, which has depressed real wage growth. Here’s picture for the last five years.