Originally posted on 05/21/2014:

Quote Originally Posted by itchypickle View Post
I was giving you the benefit of the doubt with your comment about knowing so much about QE but that just got shot to hell. Yes the lost payments are interest so look at the other side of that lost $$...who gets to keep and utilize that discrepancy?? I won't make it easy for you, and with you being the financial genius that you claim it shouldn't take you long to nail it....but I'll give you a clue...its someone who got bailed out with tax payer money already before this extra sweet deal.

And businesses aren't encouraged to take on credit my friend..thats just lousy policy. In downturns you restrict and save on the bottom line in order to wait it out and pick the spot to expand again when the return is a given. Low rates might be good for new companies to get a start or for some minor upgrades to existing businesses to create more efficiency but just taking on debt because rates are low with no viable plan to use that money is a recipe for failure.
Lol, you literally have no clue what you are talking about. First of all there is a difference between a fiscal bailout of investment banks versus quantitative easing from the FR. And if you knew anything about QE you would understand that banks are actually one of the most effected from it because the FR is extracting interest from the banking system by driving down rates on treasuries. They instituted the IOER of course, but that is peanuts compared to sitting on the rates you want. QE does not help the banks. One can make the case that QE1 helped as it took out the toxic MBS's off their balance sheets. But the fact that only govt backed MBS's were included, one would have to understand how banking works to realize that it did not help them out at all.

And the worst thing that can possibly happen is businesses "saving" during a recession. That's exactly why they do the complete opposite measures to get businesses to have access to credit, new businesses, old businesses, etc. Credit is the lifeblood of the business sector. There is a reason why very smart people do what they do and very uneducated people learn their information from conservative bloggers.