9 comments

  3. So how many of the stock “gains” in the last six years were because of the various QE schemes?

    Or, when government controls the money, it’s all about the politics.

  4. Frankly, a significant amount. Keeping interest rates artificially low pressure investment managers who need to show some sort of returns to move money from the bond market (for many decades, about four times the equities markets in value) into equities, just to keep their jobs.

    When interest rates are kept below the nominal rate of inflation, it is effectively a sharp tax on saving. That the Bernanke-Yellin policies of “easing” and “asset purchasing” are anti-growth should be evident from experience now.

    Or they could explain how their policies are any different than the Bank of Japan’s after their own banking crisis over 20 years ago – or better still, why we should expect a different result from doing the same thing.

  5. Stock market up, number of unemployed no longer looking for work also up.

    It’s only good when there’s an inverse relationship.

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