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The problem with this approach is that
only the wealthy can gain the greatest benefit from it, and the real economy
picks up the scraps.
The banks can borrow at almost zero, and buy treasuries paying two or three percent,
and the wealthy can continue to buy income producing assets and other
companies to strenghten their monopolies.
There will be no sustainable recovery until the system is reformed. The
greater fault is of Obama and the Congress, since they control fiscal policy
and enforcement of the law, although the Fed as regulator does very little to
reform the financial system and the Banks.
The limit of this current quantitative easing policy is the value of the
dollar in international trade, or the spontaneous action of the people to
demand change.
Reuters
Wall Street gains after Bernanke comments
By Ryan Vlastelica
March 26, 2012
NEW YORK (Reuters) - Stocks rallied on Monday after Federal Reserve Chairman
Ben Bernanke suggested the central bank would continue supportive monetary
policies even as the unemployment rate improves.
The economy needs to grow more quickly if it is to produce enough jobs to
bring down the unemployment rate further, Bernanke told a gathering of the
National Association for Business Economics.
"Further significant improvements in the unemployment rate will likely
require a more rapid expansion of production and demand from consumers and
businesses, a process that can be supported by continued accommodative
policies," he said.
Leo Grohowski, the chief investment officer at BNY
Mellon Wealth Management in New York, called the remarks "the best of
both worlds..."
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