I Told You So

One of the pleasures of writing this stuff, is to find the "mainstream" press confirm (much later, of course) my thesis.  Well, campers, it's happened again. Here's the piece.  The original source is "US News and World Report", historically a Right Wingnut organ.  I guess they've gotten hold of a token sane person.

And here a few quotes:

It's still possible that the Fed's critics might be right, with all that extra money--which is mostly sitting on banks' balance sheets--working its way into the real economy and producing problematic levels of inflation. But for that to happen, wages need to start going up as well, since a spike in wages is usually what triggers prolonged inflation at the consumer level. Anybody gotten a big raise lately? Hardly.

The Fed used quantitative easing to boost demand for stocks and other risky assets, by buying up many safer investments, such as treasury securities and other types of bonds. That left investors with little choice but to put their money into the stock market, and the Fed's program did in fact coincide with a huge bull market in stocks.


In sum:  all that TARP and stimulus and QE money went straight to banks and corporations, who've decided to keep it, rather than expand; supply side once again revealed to be a Right Wingnut scam, no jobs of course.  These are times when I wish I were wrong.  Alas, no.