3 ms·

My back of the envelope thought is that the majority of the QE given out during the 2008 financial crisis was given out via the banks who then proceeded to lend

My back of the envelope thought is that the majority of the QE given out during the 2008 financial crisis was given out via the banks who then proceeded to lend/hand it out to Fortune 500 type corporations to keep them (and the banks) from collapsing. The stuff that got inflated/propped up were "assets" that wealthy corporations and individuals buy (i.e. risky VC startups, stocks, bonds, income property such as single family rental homes) - which is not stuff tracked by CPI. In the Covid pandemic most of the QE stimulus was to enable low interest debt in order to allow Congress to give it out to "the people" via government stimulus checks. "The people" then proceeded to buy stuff that normal people buy - i.e. consumer staples/discretionary goods which is stuff tracked by CPI.

sjg007 5y ago
The majority of the covid money went to the Paycheck protection act and the terms where so opaque that the rich got a lot richer. The peanuts handed out in direct relief was and is a non-issue except that supply chains shut down because of lock downs and reduced demand. After lock downs the economy has rebounded so now we have many dollars looking for products but the supply chains can't keep up.
- somethoughts 5y ago
  My back of the envelope thought is that both stimulus checks and Paycheck Protection checks went to stuff that is much more closely tracked by CPI. Its mostly rich small business owners that are getting PP checks and using it to build out outdoor dining/service areas of their business and perhaps the occasional personal home remodeling projects or staycation homes which drives purchases of house hold appliances, etc. Perhaps some bitcoin and GME stock as well. Financial Crisis bailouts went to big corps who bought out over-leveraged competitors, questionable startups (Uber, WeWork - basically anything Softbank related), etc. which aren't tracked by CPI measures.

sjg007 5y ago

The majority of the covid money went to the Paycheck protection act and the terms where so opaque that the rich got a lot richer. The peanuts handed out in direct relief was and is a non-issue except that supply chains shut down because of lock downs and reduced demand. After lock downs the economy has rebounded so now we have many dollars looking for products but the supply chains can't keep up.

somethoughts 5y ago
My back of the envelope thought is that both stimulus checks and Paycheck Protection checks went to stuff that is much more closely tracked by CPI. Its mostly rich small business owners that are getting PP checks and using it to build out outdoor dining/service areas of their business and perhaps the occasional personal home remodeling projects or staycation homes which drives purchases of house hold appliances, etc. Perhaps some bitcoin and GME stock as well. Financial Crisis bailouts went to big corps who bought out over-leveraged competitors, questionable startups (Uber, WeWork - basically anything Softbank related), etc. which aren't tracked by CPI measures.