The Worst Recovery the US has Ever Seen

Here's the CBS Sixty Minutes interview with Ben Bernanke.

Listen carefully to 13:20 into this video where income inequality is discussed! Bernanke is ignoring the obvious when he talks about educational differences. He doesn't mention that taxes on the rich have been reduced (under Reagan), and reduced again under Bush, and reduced again under Bush. That's made a big difference. The progressive tax system has been very badly eroded.

The first part was the televised portion:


The following is "overtime", a portion that wasn't televised:


Notice that in this "overtime" portion Bernanke discusses the mortgage foreclosure mess. He comments that the failure of banks to have legal documents proving the ownership as "sloppy". Think about that. If you moved into a house claiming ownership and the sheriff came to visit and you said "well, it's mine and I had the papers, but I've mislaid them, but trust me, this is my house" you would be moved out of the house and to the curb. The "little people" don't get the break from the legal system that the banks are getting. The banks were into a speculative frenzy and they were doing some incredibly stupid things with ownership of the houses that they were putting into their mixmaster slicing and dicing them into "securitized mortgage obligations". They simply failed to do the paperwork. A very large portion of the houses being "foreclosed" in the US is being done by a legal system that is turning a blind eye to the rights of property ownership. The system is "tilted" to favour the banks. The niceties of having legal documents that are up to date and correct is being overlooked in favour of bank claims and against the rights of the people in the homes!