QE2
17 July 2010
240 views
One Comment
“The sooner the better” - a CNBC guest discussing Bernanke stepping in to initiate the next round of quantitative easing during a discussion on double-dip potential. The answer for Wall St. is always going to be printing money because they want inflation and higher stock prices. They don’t care about the average Joe.
Inflation usually means higher stock prices however nominal price increases doesn't exactly equate to an increase in wealth since EVERYTHING is priced higher in an inflationary environment. Wall St wants constant inflation because inflation keeps the credit environment expanding – they're entire system must have inflation or it collapses (i.e 2008) they will do whatever it takes to prevent deflation. They don't care about the ramifications for individuals who don't own stocks or assets – inflation kills those people with higher consumer prices.
Leave your response!