3 ms·
This of course is a big side effect of quantitative easing aka printing money. Those who held on to securities and other advanced financial instruments saw pric
by whb07 7y ago
This of course is a big side effect of quantitative easing aka printing money. Those who held on to securities and other advanced financial instruments saw prices being pulled upward due to the massive flood of hot off the press money.
Guess what people don’t own large number of those types of assets?
So before everyone does the typical “we should get government involved” rabble rousing, be aware that it is because the government got involved that this is happening.
- necovek 7y agoI am not from US, but I remember loud complaints about how Federal Reserve was bailing out banks and the rich vs the non-wealthy folks. My memory of govt reasoning was that they need to help the economy survive to avoid unfamiliar consequences (if they bankrupted the banks for giving bad loans and let home buyers keep their not fully paid homes, the argument was that crediting would stop in the future, which would be a bigger detriment to the not-wealthy). IOW, government got involved on behalf of the rich claiming to also benefit non-wealthy in the long run. This is all a bit simplified, and coming from someone only affected transitively (so without full focus on the developments).