Originally Posted by Rohirrim
QE is a last resort because the prime rate has bottomed out. It is the last gasp for stimulating this economy. I love people who's ideology is, "**** it! Let it collapse." They don't realize they are sawing away at the branch they are sitting on. The key thing here is to get the banks to start lending the money. If they won't do that, we're all ****ed. Them included. Even if we wanted to suddenly switch over to an entirely different economic model, now would not be the time to do it. If the economy starts running again, the QE will go away. It's not infinite. That's like saying that after you patched the hole in a sinking ship you're afraid the bilge pumps will keep on running forever.
You don't understand QE. Bernanke and Obama have set the prime rate at 0% for Obama's entire term, in an effort to stimulate the economy. It hasn't stimulated anything except rising prices.
Banks are lending, however, a majority of first time home-buyers either don't have a job, or are under-employed.
In the meantime, banks pay nothing, as American savings accounts erode in value, from the massive inflation from Obama and Bernake's ZIRP and deficit spending.