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I disagree! It made the wealthy UBER, FILTHY WEALTHY!! In fact it created the largest income gap in history! Well done.. The really scary part is they have nothing left for the coming crash..
I disagree! It made the wealthy UBER, FILTHY WEALTHY!! In fact it created the largest income gap in history! Well done.. The really scary part is they have nothing left for the coming crash..
Yes and no.
Much easier to double-down and re-invest when you've got the reserves. Gaps spread with each correction, regardless of QE.
Not saying QE didn't encourage cash from the sidelines but it's not the only factor.
I disagree! It made the wealthy UBER, FILTHY WEALTHY!! In fact it created the largest income gap in history! Well done.. The really scary part is they have nothing left for the coming crash..
QE was great for the stock market. Anyone with a 401k, retirement plan, pension, individual investor has benefited GREATLY, just watch out for the next crash, but don't guess the crash. Stay invested until the market starts tanking.
QE has inflated assets nicely, but has not stimulated general inflation. First off most of QE never left bankers reserves, as they sat there helping to keep interest rates low. Secondly, because of the resultant low interest rates, returns on private sector fixed income investments went to about nil. So about $80B or so of potential interest income to the people instead went to the Treasury from the Fed. One good thing was that our National Debt dropped by that amount.
Yep, any deficit reduction due to monetary, not fiscal policy.
Quote:
Originally Posted by Hoonose
QE has inflated assets nicely, but has not stimulated general inflation. First off most of QE never left bankers reserves, as they sat there helping to keep interest rates low. Secondly, because of the resultant low interest rates, returns on private sector fixed income investments went to about nil. So about $80B or so of potential interest income to the people instead went to the Treasury from the Fed. One good thing was that our National Debt dropped by that amount.
I disagree! It made the wealthy UBER, FILTHY WEALTHY!! In fact it created the largest income gap in history! Well done.. The really scary part is they have nothing left for the coming crash..
The Fed is made up of officials with all kinds of views. Some think QE helped, some don't. In that regard they are no different from economists at large.
It did make the 1% who were already insanely rich, even more rich. The rest of us, marrow was sucked from our bones.
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