Turns out the program has created maybe 700,000 full-time jobs â at a cost of around $850,000 each. House prices are lower than before QE2 was launched. Economic growth is slower. Inflation is higher. http://www.marketwatch.com/story/qe2-was-a-bust-2011-05-21
The author is an idiot. QE2 volume may be $600 bln, that doesn't mean it "cost" the same amount. Then he goes ahead and claims each job "cost" $850k. This is a shameful and borderline embarrassing read.
QE 3 and more asset bubbles on the way! Bubble ben bernanke only knows how to create economic growth through the creation of asset bubbles!!!!!!!!!!!!!!!!!!!!!! As I said years ago they cant fix this problem by spending money to create jobs, jobs cannot be forced on a slowing economy, this is just a laughing matter at this point. Just get ready for more spending to prop up the worthless economy which will then lead to more asset bubbles!
As much as I hate the Fed, I am forced to agree this article is baseless and without any logic at all. The only comment I can see that is worth repeating is that the rise in stocks is significantly blunted with the massive dollar decline.
What's the cost creating new money at such a rate? Good question, but given the way things are being run by Obama et al. I would guess way more than $600B.
Whats the math on it? I'd like to know also. I wouldn't base it solely on the market though. And I wouldn't be surprised if it were a net positive trade. What has been the cost of QE? What has been the effect on the dollar? (probably not easy to figure out) How much has the market gone up since QE started? How much have publicly traded companies made in profits/price change in stock since QE started? Companies are sitting no more cash on the books than ever before, their just not using it. Personally I think they should bear penalties for that, higher tax rates, etc whatever needed to get them to spend that cash. I say the same for banks, they should be penalized for not giving out loans, otherwise they shouldn't be allowed to be a bank. But I'm not a politician. The picture might not look great to some people, but I think people are looking in the wrong places.