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Pittsburg, Kansas | Very good point.
But it is near free money for the biggest banks and hedge funds that can borrow in the overnight market. So they have nearly free money, that they can leverage up even more, and send asset prices sky high.
We may not have "inflation" as measured by the CPI measurement, but we have definitely had asset price inflation from the increased money supply via rehypothecation of securities as collateral and the loans thereof driving the market.
Look at the money supply via the Fed's own charts. No lowering of the money supply or the loans that create it. Just a change in the borrowers and where the money has went.
John | |
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Negative interest rates used to run small banks out of business???
