In my view, QE's inflation happened before QE started. A significant purpose of QE was to prop up the loans made before the financial crisis. The inflation happ

In my view, QE's inflation happened before QE started. A significant purpose of QE was to prop up the loans made before the financial crisis. The inflation happened with the creation of trillions of dollars of securitized sub-prime housing loans. Rather than allowing those loans to default, the Fed is acting as a buyer of last resort through QE MBS purchases [0]. Without the Fed, much less money would be available for housing loans, and their prices would return to historical ratios to income [1, 2]. [0] https://fred.stlouisfed.org/series/MBST https://fred.stlouisfed.org/series/MBST [1] https://archive.nytimes.com/www.nytimes.com/imagepages/2006/08/26/weekinreview/27leon_graph2.html https://archive.nytimes.com/www.nytimes.com/imagepages/2006/... [2] Blue line in http://www.econ.yale.edu/~shiller/data/Fig3-1.xls http://www.econ.yale.edu/~shiller/data/Fig3-1.xls