A Top Left Economist Says That the Fed is Helping the Rich, Hurting the Poor. He’s Right.

The hedge funds and the big banks have done better than anyone under the Fed’s printing regime.

When the Fed prints the guys that do the best are the guys who have a direct line to Bernanke and Co. Where do you think all the new money goes? I haven’t seen any checks show up in my mail box.

The big banks and the hedge funds have done amazingly well over the past 3 years or so. Never forget that the quarter after Goldman Sachs was bailed out was the most “profitable” in the history of the bank.

Goldman Sachs was dead in the Fall of 2008, but the Fed not only saved the recklessly leveraged investment bank but gave it so much money that bonuses in 2009 were the largest Goldman had ever handed out. Many a Maseratti was bought in the depths of the recession with money that flowed from the Fed.

So when Bernanke and the President wax about how increased easing is going to “save the American economy” take it with a greain of salt.

Even Joseph Stiglitz says the Fed has done great damage.