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That was “only” a few hundred billion. It pales in comparison to the $9 trillion in QE over the past decade given to the largest banks.

hackernewds 4y ago
That doesnt add up. An inordinate amount of money was printed in the last 2 years (up to 25% of the supply[1] [1] https://www.cityam.com/almost-a-fifth-of-all-us-dollars-were-created-this-year/ https://www.cityam.com/almost-a-fifth-of-all-us-dollars-were...
Aunche 4y ago
First of all, the entire stimulus was $4.5 trillion, and most of it was allocated to handouts. A lot of the handouts were necessary, like expanded unemployment, but others were complete wastes of money, e.g. giving checks to families making 6 figures or forgiving loans for billion dollar "small businesses." Second of all, QE isn't money given to the banks. When we have a deficit, the government sells bonds to banks. "Naturally" this would drive up interest rates for businesses because unlike the government, they can't issue an infinite number of IOUs and have to compete for a limited amount of liquidity. If interest rates rise too much, businesses will be forced to shut down, especially when people spend less money during a pandemic. Quantitative easing is a tool that allows the Fed to lower interest rates purchasing by these bonds back from the banks. The more debt the government issues, the more debt the Federal Reserve needs to purchase in order to lower interest rates. Basically, the root of the problem is that Congress is incapable of balancing a budget.
- ModernMech 4y ago
  > but others were complete wastes of money, e.g. giving checks to families making 6 figures Remember that the cutoff for stimulus was from prior year's taxes. This means you could have been making 6 figures in 2019, and then be making significantly less due to covid job loss or reduction when stimulus was handed out. As a matter of fact, stimulus helped my family greatly even though we made 6 figures in 2019. So following through on your claim would have meant my family suffering. YMMV.
  - another_story 4y ago
    If you're making 6 figures you should have a decent sized emergency fund if you live in an excessively high CoL area, no?
    - ModernMech 4y ago
      Should is the operative word there. One could be in school for a while deeply in debt for a decade, get a 6 figure job in a high COL area right after graduating, then lose that job due to covid within a year. How would they have a decent sized emergency fund saved up? Why would such a family not be deserving of relief?

hackernewds 4y ago

That doesnt add up. An inordinate amount of money was printed in the last 2 years (up to 25% of the supply[1] [1] https://www.cityam.com/almost-a-fifth-of-all-us-dollars-were-created-this-year/ https://www.cityam.com/almost-a-fifth-of-all-us-dollars-were...

Aunche 4y ago

First of all, the entire stimulus was $4.5 trillion, and most of it was allocated to handouts. A lot of the handouts were necessary, like expanded unemployment, but others were complete wastes of money, e.g. giving checks to families making 6 figures or forgiving loans for billion dollar "small businesses." Second of all, QE isn't money given to the banks. When we have a deficit, the government sells bonds to banks. "Naturally" this would drive up interest rates for businesses because unlike the government, they can't issue an infinite number of IOUs and have to compete for a limited amount of liquidity. If interest rates rise too much, businesses will be forced to shut down, especially when people spend less money during a pandemic. Quantitative easing is a tool that allows the Fed to lower interest rates purchasing by these bonds back from the banks. The more debt the government issues, the more debt the Federal Reserve needs to purchase in order to lower interest rates. Basically, the root of the problem is that Congress is incapable of balancing a budget.

ModernMech 4y ago
> but others were complete wastes of money, e.g. giving checks to families making 6 figures Remember that the cutoff for stimulus was from prior year's taxes. This means you could have been making 6 figures in 2019, and then be making significantly less due to covid job loss or reduction when stimulus was handed out. As a matter of fact, stimulus helped my family greatly even though we made 6 figures in 2019. So following through on your claim would have meant my family suffering. YMMV.
- another_story 4y ago
  If you're making 6 figures you should have a decent sized emergency fund if you live in an excessively high CoL area, no?
  - ModernMech 4y ago
    Should is the operative word there. One could be in school for a while deeply in debt for a decade, get a 6 figure job in a high COL area right after graduating, then lose that job due to covid within a year. How would they have a decent sized emergency fund saved up? Why would such a family not be deserving of relief?