So my question is, where is the black hole that has sucked all the capital from the last 10 years of qualitative easing?
Someone, or some group is sitting on a humongous pile of cash somewhere.
Where is all this cash going?
“So my question is, where is the black hole that has sucked all the capital from the last 10 years of qualitative easing?
Someone, or some group is sitting on a humongous pile of cash somewhere.
Where is all this cash going?”
It’s going back to the Fed.
When the economy is in trouble and the Fed decides to “print” money, it doesn’t just throw it out the window for people to catch. It uses that money to buy assets in the open market - treasuries, Mortgage instruments, etc and that money then gets spread out in the economy. In doing so it helps prop up asset prices, lowers interest rates and helps businesses.
When the economy starts to improve, the fed sells those assets it bought in the open market and in doing so gets back most of the cash it “printed”.