The Policies of Insolvency

There was no meaningful recovery from 2003-2007.  GDP growth in the private sector never went over 2%.  Never.  The Federal Government literally borrowed and spent from $500-600 billion every single year from 2003 - 2008, when the banking system essentially collapsed.  This "support" allowed the markets to croon on about 5% GDP growth rates (quite healthy) that were in fact false.  This, in turn, led to the misallocation of credit that resulted in home prices spiking higher as credit was granted to people who had no ability to pay.

That debt, by and large, still exists.  Only a tiny fraction of it has been defaulted or paid down, as I cover every single month in the Federal Reserve G.19 (and quarterly Z1) reports.

So now you have "economic recovery", you say?  Like hell.  You have an economy that is literally bleeding from the femoral artery as the nation's left leg has been severed above the knee by a bunch of homicidal maniacs on both Wall and K Streets.  The patient is alive only because they are pumping in blood at a rate that exceeds that which is spraying all over the floor while you're calling the patient "healing"?” – Carl Denninger

The so-called recovery is an illusion created by corrupt politicians.