Pulse of the U.S. Economy

General outlook of the U.S. economy is still bleak after four years have passed since the outbreak of great financial crisis of 2008. It appears that the combination of unorthodox monetary policies and massive financial incentives have managed to stop the economy falling into deeper recession for the time being. FED’s open ended monetary easing policy also seems to calm the cash markets for a while, but the long term effects are yet to be seen.

Notwithstanding this backdrop, we are withnessing diverging consequences of these ultra-exceptional policies for different segments of the economy. While corporate America enjoys the benefits of accomodative policies to large extend, overall financial condition of households, particularly those of wage earners, and the public sector have deteriorated dramatically.

Long term effects of these polices implemented for rebalancing the economy is too early to evaluate. However the preliminary analysis of the macroeconomic indicators show that the income inequality between the top echelon and the rest is widening and too big to fail corporations are becoming even bigger.