Should Investors Have Money Offshore?

A friend asked why I have an offshore account. I countered, “Do you REALLY trust the government?”

He felt the Fed saved us in 2008 with their Quantitative Easing (QE). The economy is great, and employment is rising.

Ten years after the massive bank bailouts, let’s take a closer look at who was really saved.

The government’s priorities are clear!

Huffington Post reports, “Bank Bailout Now Hated More Than Ever: Study….”

“The disgust is bipartisan, with 87 percent of Republicans and Independents opposing future bank bailouts, along with 81 percent of Democrats.”

The bailout bill was passed, ignoring the will of the majority. The House voted no. The pot was sweetened. The New York Times reported, “Bailout Plan Wins Approval; Democrats Vow Tighter Rules”:

“In the end, 33 Democrats and 24 Republicans who had voted no on Monday switched sides on Friday to support the plan.”

House Speaker Nancy Pelosi reassured America:

“High-fliers on Wall Street will no longer be able to jeopardize that personal economic security of Americans, because of the bright light of scrutiny, accountability and the attention given under regulatory reform.” (Emphasis mine)

I wrote about former Fed chairman Ben Bernanke’s book, “The Courage to Act” – followed by a Wall Street Journal article, “How the Fed Saved the Economy”.

Bernanke proclaimed himself a hero:

“…. There is no doubt that the jobs situation is today far healthier than it was a few years ago. That improvement…. has been quicker than expected by most economists, both inside and outside the Fed.”

His successor, Janet Yellen, praised her stewardship in this CNN Money article.

“Federal Reserve Chair Janet Yellen gave the U.S. economy a nearly clean bill of health, two days before Donald Trump arrives at the White House.

“Now, it’s fair to say, the economy is near maximum employment and inflation is moving toward our goal.”

The Fed flew in like Mighty Mouse and saved the day – just ask them!

Who benefitted from their trillions in bailouts?

Zach Carter writes, “Ten Years After The Financial Crisis, The Contagion Has Spread To Democracy Itself”:

“By the time (Sept. 2008) Lehman Brothers filed for the largest bankruptcy in American history … the country had been navigating stormy global financial waters for more than a year.

…. The Federal Reserve and the U.S. Treasury had been permitting the largest banks in the country to funnel as much cash as they wanted to their shareholders ― even as it became clear those same banks could not pay their debts. Lehman … increased its dividend and announced a $100 million stock buyback at the beginning of 2008. Insurance giant AIG paid its highest
dividend in company history … three days after the Fed … handed the insurance giant $85 billion in emergency funds.