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News Story Source: Zero Hedge – Tyler Durden
The Tragic Consequences Of Jack Asset Monetary Policy
You have to own assets to make it in the New Economy. Pity the younger generations.
Check out the growing wealth disparity in the below chart, which is clearly the result of monetary policy.
The Fed's increasing reliance on the asset price channel of the monetary transmission mechanism over the past decade has been to "jack up" or inflate assets, hoping the "wealth effect" stimulates aggregate demand. Household net worth is now at a record level and the economy is purring.
The asset price channel of monetary policy relative importance has increased as households have been deleveraging after the GFC, rendering the credit channel of monetary policy almost completely ineffective, at least, until recently.
The result is asset bubbles everywhere.
The political consequences are also far from benign.
Conservative savers who have kept their money i
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