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Investors using 0% interest loans funded by taxpayers.

• gruez 3y ago
  Are you referring to quantitative easing/ZIRP or specific government programs that give favorable loans to specific industries?
  • COGlory 3y ago
    QE
    • gruez 3y ago
      The Fed is the cause of QE/ZIRP, but it's not "funded by taxpayers" in any meaningful sense. The mechanism by which QE is done is that the fed prints money and uses it to buy government bonds and other assets, which pushes bond prices up, and consequently yields (and therefore interest rates) down. All of this doesn't cost the fed anything. The money is printed by them, after all. It's not like they're borrowing money from some other bank at 2%, and then distributing to the wider economy at 0%.
      • COGlory 3y ago
        100% of the direct monetary cost of QE is borne by the American people.
        • gruez 3y ago
          And what is the mechanism by which the "direct monetary cost" arises, and is borne by the american people?
          • COGlory 3y ago
            Inflation? Devaluation of the dollar? Debt? Current interest rates?
• SV_BubbleTime 3y ago
  I’ve noticed 10-15 years of almost no innovation, but a ton of wealth transfer… but the FED still says ZIRP was a good idea.
  • ke88y 3y ago
    > almost no innovation The last 15 yrs in Biotech (esp genetics) and ML were more exciting than the previous 50.