[Wyatt's Torch]

The explanation as to why the Fed's "quantitative easing" has not caused more inflation is that the money hasn't circulated much, being not loaned out by the banks, but rather, kept on deposit at the Fed by the banks.

We talk about velocity a lot. The unwinding of the asset purchases (taking liquidity back out of the system) is going to be critical. expat_panama and I have discussed that numerous times.

[1010RD]

It’s simply transference from those most responsible to the public and the public gets that. Private gains and losses are the essence of a free market and correctly priced risk. Instead where publicizing the losses and dumping them across our economy. This government intervention, and I include the Fed, is simply worsening what would have been a very deep credit crunch, but a short-lived one. Eventually, you have to pay the piper.