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Coping With Lack Of Income For The Last 30 To 35 Years. Lowering Expectations.

Sunday, February 2, 2014 - 10:21 AM
Ally6770Ally6770943 posts since
Jan 16, 2010
Rep Points: 2,742
1. Sunday, February 2, 2014 - 12:02 PM
"Janet Yellen, nominated to take over as Fed chairman next year, defended the central bank’s actions at a Senate Banking Committee hearing on Nov. 14. “The policies we’ve undertaken have been meant to generate a robust recovery,” Yellen told the committee."

"A great deal of analysis has been done examining whether or not the various quantitative easing programs here in the US have actually helped to stimulate the economy. The growing consensus seems to be that they have not. While certainly inflating stock and other risk asset prices, the ongoing easy money policy has not generated the sought-after “wealth effect” that can accompany a rising stock market (i.e., investors feel wealthier as their portfolios go up, and so are more willing to spend and invest). The problem is not that there is not enough money in terms of supply – there has never been more. The problem is that this money is not being circulated through the economy (the so-called “money velocity”). It is sitting in reserves at the banks. Without an improvement in money velocity, no amount of money supply will “move the needle” with respect to stimulating economic growth."
ShorebreakShorebreak2,700 posts since
Apr 6, 2010
Rep Points: 14,633