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Old 09-25-2013, 12:05 PM   #27
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Join Date: Oct 2003
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It goes without saying that the bailouts help the wealthy, but a lot of people still don't realize that QE is helping the wealthy more than it helps the poor. This increases the wealth gap. It would be better to have the $85 billion per month go directly to the people. At least our children's future debt could be used to benefit everybody today and not just the wealthy.

Monetary easing has benefited asset prices. And the top 1 percent owns an outsized share of assets especially stocks.

So in re-inflating stocks, the Fed has contributed to the uneven recovery. The wealth of the wealthy is largely back to precrisis levels, while the rest of America is still climbing back. The Bank of England released a report this summer stating that 40 percent of the stock-market gains from the BOE's quantitative easing program had gone to the wealthiest 5 percent of households.

Economist Anthony Randazzo of the Reason Foundation wrote that QE "is fundamentally a regressive redistribution program that has been boosting wealth for those already engaged in the financial sector or those who already own homes, but passing little along to the rest of the economy. It is a primary driver of income inequality."
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