A banker named Andrew Huszar that helped manage the Federal Reserve's quantitative easing program during 2009 and 2010 is publicly apologizing for what he has done. He says that quantitative easing has accomplished next to nothing for the average person on the street. Instead, he says that it has been "the greatest backdoor Wall Street bailout of all time."
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The government buying long term bonds destroys the carry trait. The carry trait is the main reason banks, wall street, and any investors with a brain made absurd amounts of money in the late 90's and early 2000's.
It also increases spending and moves money into other investment opportunities besides banks and long-term government bonds.
Have no idea why I'm wasting my time writing this when it is all flying straight over your head anyways.Comment -
I in no way said that. I said it is one way to stop the private sector from making billions simply by lending to the uninformed at 10% since it's a long term loan and paying out pennies for 1-3 month loans.. (Ie bank account)
Lead to massive redistribution of wealth from basically everyone to only the rich.
It's not right, and it's not wrong, it's simply a technique.Comment -
I love how when the intelligent discussion starts philly disappears
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Take a class on the markets before you speak philly.
The wealth gap was growing at tremendous rates prior to the fed flattening the yield curve.
Flattening the yield curve helps to slow the redistribution of wealth from the dumb to the smart (in financial reality, this is the poor to the rich)
The amount made on commissions is minuscule compared to the 100%+ returns they could get by leveraging themselves 10-1 on things that were (for 15 years) basically guaranteed.Comment -
This guy can say what he wants.. But there's a reason his story is being printed on theeconomiccollapse blog, cause nobody gives a fukk what he says. And don't say conspiracy of the big media, cause they sure gave Snowden all the press he ever wanted.Comment -
And ask anyone involved in the markets if they are a fan of quantitative easing... They'll say no, yet you say it benefits them?Comment -
You're the one that needs to take a class. This was theft. The redistribution of average citizens accumulated wealth to the most elite.
Under Obama, stocks have risen 108% since he took office. Yet, the percent of working age Americans with a job has declined from 60.6% to 58.3% and median household income has declined five years in a row and poverty levels are exploding.
Who benefitted? The elite.
It's not just this guy who thinks QE is bad. Germany's finance minister called it clueless.
But go ahead and keep on thinking nothing is wrong.Comment -
This year’s 24 percent jump in the Standard & Poor’s 500 Index is the third-biggest annual rally after a president was returned to office since the 1930s, trailing Bill Clinton and Ronald Reagan, according to data compiled by Bloomberg. The index has climbed 108 percent since Obama became president, adding more than $10 trillion in equity market value.
More links...
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I'm glad to see your using the S&P versus the DJIA, which I expected you to use, as the second is a useless baseline.
The market also was returning from record drops, so record gains are expected at some point.
You do seem a bit more knowledgeable then I had previously thought, although anything of substance is still cut and paste
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Bottom line is this. We can all talk about it until we are Blue in the Face. Nothing is going to change Period. America will never go bust due to our military attacking another country if need be. China isn't taking over shit as they are almost busted out also, and nobody else has any money at all. Its the cycle of cash that keeps moving round and round. Ups and Downs and 50 years from now a new batch of posters will be speaking of the same crap we are. Goal in life is when you are all finished, Make sure nobody wants to Visit your Gravesite !Comment -
So you would accept the premise that you could run a viable economy when 5% of the population control 95% of the wealth??
Its not like the heavy majority of those 95% are bums with no jobs either. They simply ask for a 'fair go', something the politicians have little interest in adhering to (as flushing the economy of your country down the sink hole isn't enough proof of that??).
Is that really too much to ask?Comment -
I'm not saying that. But the wealth gap in America has been increasing greatly in the past 15 years, not just the past 5 that the fed has begun with the quantitative easing. It's been an epic failure trying to rebuild the economy, just trying to say that quantitative easing isn't what put the US in the shitter.
Politicians are scum dude, the fact that an assault rifle ban had to be discussed in congress tells me all I need to know. If you believe having assault rifles makes the country safer, then you have no business being in office.
I'm not sure if you live in America Cooch, but our people as a whole are no longer "extraordinary". The fact that only 20% of our country is unemployed is astonishing. Walk through a mall, and let me know if you personally would employ over 60% of those people? Quite sure the answer would be no.
Something drastic has to change with the US in the next 20-30 years or I'm quite terrified to see the world we are going to live in.
The real downfall of the US will be Obamacare (if it lasts long enough to destroy the country) and the currently disastrous US educational system.Comment
