To be clear on the banks and balance sheets –I think the intent of QE was to get more money into the economy, not just to have the money sit on deposit with the Fed. I’m fairly certain the Fed wants banks to lend out every penny they have right now and then some. Then we might get some real inflation. For a variety of reasons and depending on who you believe (no demand for loans, demand for loans from unqualified borrowers, risk aversion etc) that hasn’t happened.
Can anybody show me evidence of “massive asset price bubbles” and show me how the Fed (I’m assuming via QE) caused it.
