Federal Reserve has loaned out Trillions of $s

[B_curiousme01]

I agree with talltpaguy.

 

[Speculator]

You have oversimplified the situation on a grand scale. Trillions of dollars disappeared thanks to the collapse. Those trillions have to be put back. The American consumer faced with their biggest asset, their homes, plunging in value and with wage growth trapped at 1-2% and credit card debt at records highs, savings at record lows they simply have no leeway to spend more. Export driven countries like Germany and China will one day have to actually start buying themselves or else it's all going to go bust.

Nope, those $trillions don't have to be put back. Instead of bailing out their banker chums the FED and the Treasury could have allowed the market run it's course so the whole rotten edifice collapsed, if they had done this the U.S would be through the worst of it by now instead of facing another decade of stagnation and instability. During the Great Depression hundreds of banks filed for insolvency yet society as we know didn't end; it purged the toxicity from the system.

If you're in too much debt the solution is to worker harder or default, the U.S gov't isn't letting you do either. This isn't an import/export problem.