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The money the fed injects into the financial system is staying in the financial system. Too many dollars chasing too few equities could result in ‘equity inflat
by bawana 7y ago
The money the fed injects into the financial system is staying in the financial system. Too many dollars chasing too few equities could result in ‘equity inflation’=stock market bubble. (I am using the word equity as a symbol for any financial instrument) But none of this money ( or maybe just a token fraction of it) is reaching the real world. The purpose of this quantative easing is to prop up values of the warehouses of wealth. We still have massive unemployment but the firms doing the layoffs have stable stock prices . What is really amazing is that we live in a world where Marie Antoinette can flaunt her wealth and at the same time use that as an example of ‘free speech’