[image: Forbes]

To: Chairperson Janet Yellen
Federal Reserve Board
Washington D.C.

Dear Dr. Yellen:

Public records reveal a dramatic story about the most recent 5 years in our economic history. That record includes your own praise of former chairman Ben Bernanke for his “heroic” actions during the world crisis.

According to part of that history U.S. Household Net Worth rose from $55.6 trillion to $80.7 trillion. That’s a $25 trillion increase. Nearly all of it, however, went to the upper echelon of residents. Millions of others are still trying to find a job without unemployment insurance or food stamps to help keep body and soul together. So I guess there really are two Americas—the super rich and all others.

Those who were responsible for the Great Recession (US bank executives) likely have been doing back flips in their new found wealth. Not only were they deemed “too big to fail” after sinking US and world economies, they apparently had friends in high places. The Fed made about $5.3 trillion in new money available to them to do with as they pleased for the unheard of interest rate of 0.25 percent. But instead of making loans to individuals and small businesses, those bankers funneled most of that money into stocks, bonds, and real estate—that rose in value coincidentally by about $25 trillion.

Still, the US economy languishes. But the “old boy network” of 7,500 bank CEOs, and the 63,000 corporate CEOs, and 2,700 private equity managers have divvied up the new wealth, and all of it thanks to those who decided they were too big to fail.

The one comment that summarizes the past 5 years succinctly was made by Ken Lewis when he handed over the keys to the executive suite to his replacement as CEO of Bank of America. As Brian Moynihan walked to the podium, the audience of bankers was relatively quiet. Ken looked at them and said reassuringly “Don’t worry, he’s one of us.” The bankers roared their approval.

I believe it is within your authority to direct that new money from Fed purchases go into circulation as M1, the real stimulating mechanism of economic activity. Community banks, credit unions, the Small Business Administration, small businesses, individual borrowers, and 310 million Americans await your prompt and heroic response.

Sincerely,


Edward Phillips
An observer of the American scene

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