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To: Wyatt's Torch

So flooding the market with cash will drive up commodities, move houses (mortgages?), AND restrict consumer purchasing power.

How does a buyer with less purchasing power qualify for a house?

And how does this not increase unemployment?


10 posted on 09/14/2012 3:27:16 PM PDT by xzins (Retired Army Chaplain and Proud of It! True supporters of our troops pray for their victory!)
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To: xzins

The theory is that in deflation people/banks are hoarding cash. By adding liquidity it makes additional dollars less meaningful and banks will be more willing to lend which spurs economic activity which, of course, drives employment.

On the flip side there is this post from ZeroHedge that highlights BofA’s call for the results of QE:
http://www.zerohedge.com/news/bofa-sees-fed-assets-surpassing-5-trillion-2015-leading-3350-gold-and-190-crude


12 posted on 09/14/2012 3:58:49 PM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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