Posted on 12/06/2013 3:25:45 PM PST by Oldeconomybuyer
... Quantitative easing has had the intended effect of holding down interest rates, which has in turn encouraged borrowing by businesses and individuals with good credit and stabilized the housing market. But persistent economic uncertainty has dulled the positive impact of the Fed's program. U.S. gross domestic product has broken above a 3 percent annual rate of growth in only six quarters since 2009. Some of the money has instead inflated asset bubbles, to the benefit of mostly wealthy investors seeking high yields.
The Fed's "real intention was capital investment would be stimulated, jobs would be created, incomes of the 99 percent would rise," says Martin Fridson, a high-yield expert and chief executive of FridsonVision LLC, a financial research firm in New York. But, he adds, it's "not clear how effective that has really been. It's certainly clear that those who are wealthy enough to own a substantial amount of assets have been made even wealthier by the Fed policy."
(Excerpt) Read more at reuters.com ...
This article is a very interesting read! Thanks for posting.
I wonder who is buying all these junk bonds. Probably all of us.
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If? How has it enriched workers? Only them that's got are gettin'.
This is satire, right???
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