When The Government Pumped Money (Quantitative Easing) Into The Economy, Who Benefited, Wall Street Or Main Street?

Printing Money.jpg

The U.S. government, from 2008 to 2014, went on an unprecedented, bond buying spree known as Quantitative Easing (QE) to the tune of $3.5 trillion.

Jeff Kearns humorously described the “idea behind QE is that you don’t need a printing press to add money to an ailing economy,” (The Fed Eases Off, Bloomberg QuickTake Newsletter, updated Sept 16, 2015).

Now, before a formal answer to the question, When the government pumped money (QE) into the economy, who benefited, Wall Street or Main Street?”, ask yourself, do you recall the government directly giving you a part of the $3.5 trillion? My guess is that your answer is, “No.”

That money went directly somewhere … just not to you and me.

With that lead in, an official answer is contained in the article The Fed Eases Off by Jeff Kearns: “A former Fed official who executed the bond purchase, Andrew Huzar, charged that ‘while there had only been trivial relief for Main Street, the U.S. central bank’s bond purchases had been an absolute coup for Wall Street.'”

Wall Street won.

 

 

About drjstewart

Educator, writer, and photographer
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