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At the cost of a massive increase in inequality and massive asset bubbles. This is recovery, no doubt, but a recovery that makes things worse in the long-term.
by littletimmy 11y ago
At the cost of a massive increase in inequality and massive asset bubbles. This is recovery, no doubt, but a recovery that makes things worse in the long-term.
- HiLo 11y agoThe increase in inequality was ongoing before that, so you haven't linked QE and inequality. Neither has Bernanke, who says the ties are very opaque. Furthermore, this isn't a massive asset bubble, nor does it fit the description of them. What sectors are in a bubble? If they popped, would they bring the economy down with them? Your most credible case on this would be the energy industry - "low rates allowed shady shale companies to borrow billions at ultralow rates," right? OK, so now that the price of oil has been cut ~65% (65% of your revenues, gone!), we: 1. Still have positive inflation, even when accounting for energy 2. Still have a functioning energy sector 3. Haven't experienced any kind of major economic dislocations. I guess what I'm asking is, how is this recovery making things worse in the long run, than a total economic collapse in a nuclear age would have been?
- deleted 11y ago[deleted]