tag:blogger.com,1999:blog-8575396221761490577.post7350964837465889762..comments2023-10-14T11:47:37.778-04:00Comments on Bank Watch: Krawcheck warns of big bank complexityUnknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8575396221761490577.post-76129063509007706302012-09-14T15:19:02.778-04:002012-09-14T15:19:02.778-04:00Posting the links you refuse to:
http://market-ti...Posting the links you refuse to:<br /><br />http://market-ticker.org/cgi-ticker/akcs-www?post=211490<br /><br />Now here's the ugly truth -- QE has not only failed, it has massively failed.<br /><br />QE began in November of 2008. <br /><br />During that time the labor participation rate fell, flat-lined, and has refused to recover.<br /><br />The evidence is clear: QE doesn't work to stimulate employment, it instead destroys jobs.<br /><br />The reason it doesn't work is that it can't; QE by definition debases purchasing power as it increases the denominator of credit and money. It is simply a sop to those who buy and speculate in the financial markets (in this case, in mortgages) but the positive effects on home prices are tiny. If we get a 50 basis point move in mortgages (unlikely; the more likely move is 25bps) then the price support is only 3%! If the more-reasonable expectation of 25bps is realized then the price support is 1.5%!<br /><br />This is so tiny as to be beyond "marginal" and well-into the range of utterly insignificant and immaterial to the real economy.Anonymousnoreply@blogger.com