[quote=FlyerInHi]Inflation? high interest rates?
That was predicted in late 2008 with the bailout and stimulus bill.
Had we tightened, we would have been much, much, much worse off.
I hear homeowners in Europe are now refinancing in the mid to high 2% per annum. I see some carry trade going on. Low rates will be around in the US for a while still, even if the Fed hikes rates.[/quote]
Worse off, or better off? Prices of things would have continued to go lower for a bit, so the purchasing power of those on fixed incomes — including workers — would have increased. Some jobs would have been lost, but the price of wages tends to be stickier than asset prices. The wealth and income gaps would have shrunk dramatically.
Who’s benefited from all of the manipulations? Asset owners. Who’s paid for it (and make no mistake, people are paying for it)? Savers, workers, and others on fixed incomes; people who were holding cash instead of other assets. Future generations who are now saddled with tons of debt and a much higher cost of living. These people have lost trillions of dollars, collectively speaking.
Oh, but the bankers and financiers are doing just fine, TYVM. And not a single person who was responsible for the devastation caused by all of the financial madness of the past 15 years has spent a day in jail, much less had to lose any money as a result of their financial terrorism. I’m sure they’re very grateful to people like you, Brian.
Please tell us how we’re better off as a result of all the manipulations, Brian, and take the *whole picutre* into consideration.
