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FED Admits Consumer Confidence Low

A comment today from FED delicately said that the US economy seemed to improve “modestly”. Well folks we all read the famous Alan Greenspan book “The Age of Unreason” and we know what this means in the FED jargon – that the economy is performing below expectations.
Of course the Black Friday weak sales are contributing to this public governance disappointment. And to think a bit of it, it is a bit of a shame for the FED, which has been throwing with trilllions to the US consumers. In a classical keynesian approach, the government pumped billions into the economy and hoped that they will see some more effects than the inflation. Yes, they saw a small (less than one thousandth of an inch) movement in the consumer confidence. And a marginal increase in the consumer spending. So where did all those trillions go?
Down to drain is the first tempting answer, but the answer is not this one. These are money and noone throws money down to drain (at least intentionally). My thoughts are that those money are not pumping up only the US economy, but some other economies. And my thoughts are also that some of the money (double digits percentages) contributed to the much needed (:))) re-capitalisation of some US companies. Aka the banks, the US car manufacturers and the other strong lobbyists.
Disappointing for a respectable institution such as FED, isn’t it? Well, I could say “I told you so”. The proof are the blogs from our investment blog here, doitinvest. But I will not say such thing, since I am modest. But the warning comes now in form of disappointing figures to the US policy makers: you can’t solve a problem by throwing trillions at it. You just enrich some people, and probably not the ones you expected initially to get richer. Well, good night and good luck America.

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