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Fascinating. Correct me if I'm getting it wrong: The Quantitative Easing brought rates down to almost zero for a decade. Abundant liquidity, low rate loans. C
by dgudkov 7y ago
Fascinating. Correct me if I'm getting it wrong:
The Quantitative Easing brought rates down to almost zero for a decade. Abundant liquidity, low rate loans.
Corporate management use the chance to get cheap money to buy stocks back. Stock prices go up, the management gets huge payouts. Workers and shareholders get nothing. Inequality grows. R&D expenses decline.
As stock prices go up, stock indexes soar and we witness (kinda) amazing market growth (woo-hoo) which is actually pumped up artificially (who cares).
The virus hits the economy. The stock indexes deflate.
The Fed announces another huge round of QE to "inject liquidity", and we now all know where it will go.
I'm not sure if all this can be better described by "scam" or "corruption".