Results 1 to 8 of 8

Thread: Quantitative Easing

  1. #1
    Join Date
    Jan 2005
    Location
    Left Coast
    Posts
    7,822

    Quantitative Easing

    Gad! The obscure terms that economists use.

    Essentially, a flood of money to bring the interest rate down and make it more available to entrepreneurs and consumers.
    Brother, you can believe in stones as long as you do not hurl them at me. Wafa Sultan

    “War is an American way to teach geography,” British soldier

    War is sweet to those who have not tasted it, but the experienced man trembles exceedingly at heart on its approach. – Pindar

  2. #2
    Join Date
    Feb 2004
    Location
    Sydney, Oz
    Posts
    3,253
    Rob savers and anyone on a fixed income to reward reckless spending and irresponsible debt levels - and then wonder why the economy sucks.
    He or she who supports a State organized in a military way – whether directly or indirectly – participates in sin. Each man takes part in the sin by contributing to the maintenance of the State by paying taxes.

    ~ Gandhi

  3. #3
    Join Date
    Mar 2005
    Posts
    11,660
    did you want to give us some opinion or thought on the subject or did you just want to post your personal definition?

  4. #4
    Join Date
    Jan 2005
    Location
    Left Coast
    Posts
    7,822
    Just checking to see if anyone had given any thought to the thing.
    Brother, you can believe in stones as long as you do not hurl them at me. Wafa Sultan

    “War is an American way to teach geography,” British soldier

    War is sweet to those who have not tasted it, but the experienced man trembles exceedingly at heart on its approach. – Pindar

  5. #5
    Join Date
    Mar 2005
    Posts
    11,660
    Quote Originally Posted by simone View Post
    Just checking to see if anyone had given any thought to the thing.
    fair enough. Yes, I have given a lot of thought to it and I came up with two questions I wanted answered.

    1) Why would the extra money make banks lend more to begin with when they already can loan money but are too afraid to and thus invest in treasuries.

    2) Isn't too much lending how we got ourselves here in the first place?

  6. #6
    Join Date
    Jan 2005
    Location
    Left Coast
    Posts
    7,822
    Quote Originally Posted by Steeeeve View Post
    fair enough. Yes, I have given a lot of thought to it and I came up with two questions I wanted answered.

    1) Why would the extra money make banks lend more to begin with when they already can loan money but are too afraid to and thus invest in treasuries.

    2) Isn't too much lending how we got ourselves here in the first place?
    I agree with the first point, banks are not going to loosen up the money; as to the second, the problem was indiscreet lending, inadequate vetting of ability to repay, actually gambling on the odds of repayment. Mortgages and lending became a gaming concern instead of a serious banking venture.
    Brother, you can believe in stones as long as you do not hurl them at me. Wafa Sultan

    “War is an American way to teach geography,” British soldier

    War is sweet to those who have not tasted it, but the experienced man trembles exceedingly at heart on its approach. – Pindar

  7. #7
    Join Date
    Mar 2005
    Posts
    11,660
    Quote Originally Posted by simone View Post
    I agree with the first point, banks are not going to loosen up the money; as to the second, the problem was indiscreet lending, inadequate vetting of ability to repay, actually gambling on the odds of repayment. Mortgages and lending became a gaming concern instead of a serious banking venture.
    Yeah, and we still do this with student loans. Sorry but an art major is not going to be able to pay off 52k in student loans.

    But you are right, the federal government encouraged lenders to lend out every dime they had and the businesses wanted to do it because they got rich and the people wanted it because they HAD to have the newest McMansion in Bambi's old stomping grounds. So now we have the other extreme because the banks are scared the feds will come down on them if they make a loan to someone. Furthermore, most Americans are STILL saddled with debt so the hopes of making a reasonable loan are already out.

    By the way, student loan debt EXCEEDS credit card debt now.

    I'm not seeing the benefit of this QE2 or whatever they call it.

  8. #8
    Join Date
    Mar 2011
    Posts
    2
    that's because you are looking at the wrong place to see any benefit

    look at where the money goes, who benefits?

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •