QE explained.
It’s by the Bank of England but I assume the Fed does/thinks the same thing. Pretty interesting. Makes me want to sell my metals and buy stocks.
Pamphlet indicates nothing bad can happen from quantitative easing.
Another piece to the puzzle, when trying to decide what to do.
excerpts:
“…More generally, the Bank of England’s purchases of both government and corporate bonds also increase the total demand for those types of assets, pushing up their prices. This is another way in which the Bank’s actions will make it cheaper for companies to raise finance.”…
…”Direct injections of money into the economy, primarily by buying gilts, can have a number of effects. The sellers of the assets have more money
so may go out and spend it. That will help to boost growth. Or they may buy other assets instead, such as shares or company bonds. That will push up the prices of those assets, making the people who own them, either directly or through their pension funds, better off. So they may go out and spend more.”… In addition, banks will find themselves holding more reserves.” http://www.bankofengland.co.uk/monetarypolicy/pdf/qe-pamphlet.pdf
