How does quantitative easing help the poor and middle class? (unemployment, gallon)
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QE only serves to devalue the dollar so it takes more dollars to purchase.
With stagnant and, in some cases, falling salaries you have a lot less money left over in your pocket.
QE serves to keep interest rates low which benefits the FedGov and Wall Street in their heavy borrowing.
I still don't see why you would refinance in an inflationary period. That just seems stupid since inflationary periods tend to have higher interest rates because of time-value of money reasons. If anything mortgage debtors would reap the benefits of having their mortgages have a lower relative value due to inflation.
If what you're saying is true, then why is the Fed concentrating on buying up mortgages? Because they have a big heart? Doesn't seem like a safe investment to me, especially among a private cartel of banks.
The poor won't be able to take advantage of the rates because their utilization is too high and they're missing payments from the poor economy. Their FICO is too low to do anything and mortgage companies won't touch them.
Didn't real wages go down since 2008? Seems as if the QEs didn't really do much and possibly hurt labor.
I see no reason why real wages will increase or even stay steady. There will be a lot of speculative buying on commodities which will hurt the poor relative to their stagnant wages though.
Wages are a lagging indicator even more so then the employment rate. The credit crisis and related deflation in 2009 killed both. What is funny is that way back then I seem to recall arguing with this fellow "viewfromthepeak" who insisted deflation would be great. If anything QE will eventually bring about inflation and increased wages (granted not a real increase but an inflation adjustment).
If what you're saying is true, then why is the Fed concentrating on buying up mortgages? Because they have a big heart? Doesn't seem like a safe investment to me, especially among a private cartel of banks.
The poor won't be able to take advantage of the rates because their utilization is too high and they're missing payments from the poor economy. Their FICO is too low to do anything and mortgage companies won't touch them.
The fed is concentrating on buying up mortgages because soaking bad investments is what the Fed and Government have always done it lets those banks who run the cartel get the assets off their individual balance sheets.
Again why do the poor have to do anything if your interest rate is set with one level of inflation in mind and inflation increases drastically interest rates will rise so those with locked in low rates should do well. If you have a bad adjustiable rate mortgage you will get less of a benefit.
Wages are a lagging indicator even more so then the employment rate. The credit crisis and related deflation in 2009 killed both. What is funny is that way back then I seem to recall arguing with this fellow "viewfromthepeak" who insisted deflation would be great. If anything QE will eventually bring about inflation and increased wages.
So even if wages and the market goes go up everything will cost more, there's no such thing as a free lunch...
So even if wages and the market goes go up everything will cost more, there's no such thing as a free lunch...
But fixed debt which was previously created will go down. Basically if I borrow 10,000 dollars at a fixed rate and the rate of inflation exceeds the interest rate I will end up owing less adjusted for inflation.
I really don't see why this is such a hard concept to grasp.
QE only serves to devalue the dollar so it takes more dollars to purchase.
With stagnant and, in some cases, falling salaries you have a lot less money left over in your pocket.
QE serves to keep interest rates low which benefits the FedGov and Wall Street in their heavy borrowing.
Imagine that - Obama the Wall Street Puppet, helping Wall Street and screwing the rest of America.
Again, how will Romney the next Wall Street puppet change anything?
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