Ateneo Professor on Entrepreneurship
From Moneynews
Is the Quantitative Easing (US Fed printing money, buying back bonds and treasuries) in effect injecting liquidity into the financial system, good for the US economy?
Donald Trump, a real estate mogul and now an outspoken US citizen thinks QE is giving the stock market false results.
Home buyers are not buying new homes, despite the added liquidity, because banks are not lending anyway. Where is the excess liquidity going into? Foreign investments? Or stock market (maybe offshore) and does not go to intended beneficiary.
Past QE injected $2.3 trillion into the economy: QE 1 Fed bought $1.7 trillion of mortgage backed securities from banks; under QE 2 $600 billion worth of Treasury holdings were bought. Under QE 3, $40 billion worth of securities would be bought monthly from banks to generate more jobs. That extra liquidity, $2.3 trillion is increasing and will increase further. (Many think that gold is at $l,600 per ounce because it has now been the more acceptable currency and no longer the dollar; the dollar has lost its value because of this excessive liquidity )
These moves ie injecting liquidity into the market was done to avert depression; however many think that the amount of infusion is too large and depresses the value of the dollar, and that much of this has been going into welfare like food stamps where 44 million Americans are enrolled. Are they looking for jobs in a jobless economy.
Money News on Trump - Fed causing stock market to give false numbers
From Moneynews
Is the Quantitative Easing (US Fed printing money, buying back bonds and treasuries) in effect injecting liquidity into the financial system, good for the US economy?
Donald Trump, a real estate mogul and now an outspoken US citizen thinks QE is giving the stock market false results.
Home buyers are not buying new homes, despite the added liquidity, because banks are not lending anyway. Where is the excess liquidity going into? Foreign investments? Or stock market (maybe offshore) and does not go to intended beneficiary.
Past QE injected $2.3 trillion into the economy: QE 1 Fed bought $1.7 trillion of mortgage backed securities from banks; under QE 2 $600 billion worth of Treasury holdings were bought. Under QE 3, $40 billion worth of securities would be bought monthly from banks to generate more jobs. That extra liquidity, $2.3 trillion is increasing and will increase further. (Many think that gold is at $l,600 per ounce because it has now been the more acceptable currency and no longer the dollar; the dollar has lost its value because of this excessive liquidity )
These moves ie injecting liquidity into the market was done to avert depression; however many think that the amount of infusion is too large and depresses the value of the dollar, and that much of this has been going into welfare like food stamps where 44 million Americans are enrolled. Are they looking for jobs in a jobless economy.
Money News on Trump - Fed causing stock market to give false numbers
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