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Tuesday, October 12, 2010

Quick Primer: Who Benefits from Quantitative Easing II?

Yahoo Finance: "Fed Head Ben Bernanke and his allies at the FOMC appear intent on voting for another bond purchase program at the November 2-3 FOMC meeting, a maneuver known as "quantitative easing" (QE). The point of the program is to keep long term interest rates low, encouraging borrowing and spending by companies and consumers."    ~So who benefits?

Savers?- currently getting 0.02% rate of return on average

Unemployed?- QE II does not create jobs or compel employers to hire

Financially prudent people?- only if willing to take on debt

Those already in debt?- No, unless willing to get into further debt

Those being foreclosed upon?-  Um.. hehe..  no

People with fixed incomes (poor, elderly, disabled)? -  No, No & Nope

~ I make this point repeatedly and with no political Dem/Rep bias-  the government does not care about you or I, and does not implement any policy decision for the behalf of everyday people

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