Quote:
Originally Posted by Dcat
..because all that money that "Helicopter Ben" is dumping is not landing on main street, but in the front yards of the "Too Big To Fail" banks.
Liquidity injections and bail outs to Wall Street, banking, and transnational conglomerates is not going to kick start the economy. It's only floating the stock market at unreasonable levels, inflating a treasury bubble, and pushing commodity prices higher. That's why we are now seeing price inflation in consumer goods and food stuffs, but strong deflation in home prices, and wages.
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I wouldn't say the only reason commodity prices are higher is because of the QE. I think people genuinely believe our economy is fucked (and they're right), and they want to protect their purchasing power through precious metals. The Stock Market isn't up because of QE either, it's because companies have figured out how to create unreasonably low earnings projections and when they beat those earnings, their buyers multiply exponentially.