Figures Don't Lie

Many years ago, my Uncle Wes was listening to a political commentary on the evening news. About halfway through the piece he got up, turned the TV off and told me: "Figures don't lie but liars sure can figure" This Blog is dedicated to setting things right about a few of the numbers tossed around in today's political discussions.

My Photo
Location: Bloomington, Minnesota, United States

How old am I? Well, for much of my career, I had a secretary. And, my best secretary could take shorthand.

Tuesday, March 24, 2009

Watch the Magician's Other Hand

I'm sure you have heard this from the Obama administration many times. Maybe even from the previous administration especially via former Goldman Sachs CEO, Hank Paulson.
"The banks are not lending"
Here are two recent charts from the Federal Reserve:

It looks to me like they have been lending.

Ask around. Try friends and business owners. Heck, call your bank!

You and I and our friends, relatives, and most especially, our children recently gave 173,300 million dollars to A.I.G., once a nice, quiet insurance company. Where did that 173,300 million dollars go? Well congress and the president have got a lot of people stirred up about 165 million of it going to "bonuses".

What about the other 172,135 million? Where did that go? Here is a picture of the cash flow:

(Click on the image to enlarge)

Thats right! Most of it went to foreign banks including 12,900 million to Goldman Sachs and 11,900 million to the fine French bank, Societe Generale and 11,800 million to the fine German bank, Deutsche Bank
So ask yourself, why is your attention being focused on 165 million while 172,175 million moves around to foreign banks and former secretary Paulson's old company? Well, why does a magician have you follow the bright colored kerchief while his other hand moves behind his back?

How bad is the deception? Most newspaper and television stories round the 173,300 million in bailout money down to 170,000. (They call it "170 billion in TARP funds). That's right, they round 3,300 million off the number and then want you to get excited about 165 million. David Copperfield couldn't do this sleight of hand any better.

Tell your friends and relatives to watch the magician's other hand. He's picking their pocket with it.


Post a Comment

Subscribe to Post Comments [Atom]

<< Home