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The economy has therefore continued to deteriorate, with only the 'automatic stabilizers' like unemployment insurance slowly adding financial assets and income to the private sector as the counter-cyclical deficit rises.
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So spending by Congress adds financial assets to the economy, to the penny, making it very different from what the Fed does.
The real assets term is obtained by subtracting total financial assets from total liabilities.
So the government has put capital in the banks to add financial ballast and halt a downward spiral in asset values and lending activity.
Consistent with this, the household sector has been adding as much to its financial assets as it has to its liabilities.If this is the case, how has consumer spending managed to grow faster than the economy for so long?
The rising credit line draws at the bottom, when added to the declining draws from financial assets immediately above, reestablishes the smoothly rising line of total draws at the top.
On the contrary, certain discretionary expenses in corporate philanthropy could have usurped the businesses' slack resources (including financial assets, labour and time) without adding much value (in terms of corporate reputation and goodwill) to the businesses.
"We didn't do as good a job as we could have," he said, adding that the commission had more success with its inquiries into missing financial assets.
But Mr. Summers added that recent actions by the Federal Reserve, combined with bargain prices for certain financial assets, might be "enough to permit a process of repair to begin".
One is growing distrust of financial assets.
Global financial assets were moving in lockstep.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com