By Allan Sloan – It’s hard to believe, but it’s been five years and a day since the U.S. financial system‘s problems surfaced, and we’re still not even remotely close to being able to feel good about the economy.
There’s a long way to go before the economy, and people, recover from wounds inflicted by the financial meltdown. The value of homeowners’ equity — most Americans‘ biggest single financial asset — is down $4.7 trillion, about 41%, since June 2007, according to the Federal Reserve. The U.S. stock market has lost $1.9 trillion of value, by Wilshire Associates‘ count. Even worse, we’ve got fewer people working now — 142.3 million — than then (146.1 million), even though the working-age population has grown.
- Myth No. 1: The government should have done nothing
- Myth No. 2: The government bailed out shareholders
- Myth No. 3: The Volcker Rule will save us
- Myth No. 4: Taxpayers are off the hook for future failures
- Myth No. 5: It’s the government’s fault
We’ve had more than enough shrieking and demonizing since this mess erupted in 2007. We need common sense, like the Hoenig Rule, and markets (as opposed to a zillion regulators.) more> http://tinyurl.com/6vjdle6
- The Myth Of Cash On The Sidelines Has Now Been Revised Away (ritholtz.com)
- The insolvent United States banking system: lessons from J.P. Morgan Chase (alethonews.wordpress.com)
- Dimon hearing raises questions about bank’s risk models (finance.fortune.cnn.com)
- U.S. survey shows meltdown set families back 20 years in wealth (fullcomment.nationalpost.com)