Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Where else does it go. To the super rich or bank reserves?
The velocity of that money the average person does not see much if any of.
That money by and large is spent by the recipients. So they all quickly gain with that money. The rich and richer don't need any extra stimulus money, as they already have excess in savings beyond living expenses. But they will tend to accumulate a large amount of that stimulus money over time, as business owners and investors.
I think what seems to be missed or forgotten by many is the fact the ones who receive the stimulus gain immediately. But don't accumulate much of that money as saved wealth.
Since the Fed is signaling extremely low interest rates and bond purchases, M2 is flowing into bonds and stocks. The money doesn't stay in MMF's very long.
The problem is that the Fed does not act as an independent regulatory body which seeks to rein in dangerous practices in the financial system. They assist the institutions in taking excessive risk and look the other way on fraudulent business dealings while providing guarantees that their losses will be offloaded to the government.
They enabled the large banks to hide leverage off their balance sheet and evade regulatory restrictions on leverage time and again. Their stress tests of the banks are not taken seriously by anyone in the industry. They were among the federal regulators who fought the states on consumer protection laws governing financial services.
I once saw a Beavis and Butthead episode where they each had a box of candy bars to sell. Butthead bough a candy bar from Beavis for a dollar and Butthead ate the candy bar. Beavis then bought a candy bar from Butthead with the dollar he just gave him and Beavis ate the candy bar. They went back and forth with the same dollar until both had eaten all the candy bars. It kind of reminds me of our Zombie Economy propped up by the FED with a massive shrinking of GDP.
The FED is the enemy of the American people. How can anyone have any trust or hope in this criminal and corrupt organization and the entire system? Starting with Alan Greenspan all previous FED members since 2001 should be arrested and publicly prosecuted for treason.
I just had to look up that episode. It sounds too funny
I just had to look up that episode. It sounds too funny
LOL — Not far removed from current events. And those BBB bonds that the Fed is buying of late have plenty of peanuts in them.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
