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Pittsburg, Kansas | The new money created via QE went into excess reserves. Excess reserves allowed TBTF banks to leverage this almost free ZIRP money into asset price inflation. Supposedly "wealth effect" inflation. Former Dallas Fed head admitted as much (will edit with link when I find the quote).
Edit: correction. Former vice president of Dallas Fed. http://www.zerohedge.com/news/2016-01-26/chances-global-meltdown-wh...
Quote from above article:
"The Fed’s monetary policy of extraordinarily low interest rates helped create the asset bubbles in stock and commodity prices that are now bursting. Low rates also distorted investment decisions."
John
Edited by John Burns 1/29/2016 22:04
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John, another look at where we have come to
