Sometimes when I just don't have the words someone more articulate than me on the subject says it all.
Bernanke: QE Was For “The Man On The Street”
(Wall Street, That Is!) and Their Electrical Parade
By Anthony B. Sanders
Zero Hedge has an amusing story today based on former Federal Reserve Chairman Ben Bernanke’s speech to the Economic Club of Canada (for a cool $250,000).
*BERNANKE: FED ACTIONS DIDN’T FAVOR WALL STREET OVER MAIN STREET (QE Was For “The Man On The Street”)
* Bernanke Says US Economy Is Heading Towards Complete Recovery
Huh? The lime colored box shows the rewards of Quantitative Easing to the Man on the Street. In Kingman Kansas, perhaps. Stagnant real household income, employment to population ratio and YoY growth in hourly wage income. And flat-lined mortgage purchase applications.
But for Wall Street, it has been roses, cigars and snifters of cognac.
Of course, retirement funds for workers and investors in the stock market do benefit from The Fed’s quantitative easing. Yet, the jobs market remains stalled while creating low-paying and part-time jobs.
Perhaps Bernanke wants Disney World to rename the Main Street Electrical Parade as the Wall Street Electrical Parade!
Fed policy under Greenspan and Bernanke in two and one half minutes.
Presenting the 'Truman Sparks Award' for Orthogonal Banking Regulation and Obtuse Monetary Policy. - Jesse