Yellen Gets Lovey-Dovey in Speech Citing “Other Tools” and More QE | MishTalk
. . . in a very weak speech to the Economic Club of New York.
Mish ends, "'In essence the way in which it worked was by signaling that real assets were inferior to financial assets. The Fed, by going into an untested program of QE effectively ended up making things worse off,” said Hunt.
At best, the Fed temporarily shifted some demand forward by inflating financial assets.
In the process, the Fed created asset bubbles in equities and junk bonds, stimulated oil production via cheap financing to the point of a bust, and exacerbated problems of income inequality.
QE wasn’t worth the problems it created. But the Fed is prepared for more of it."
This is not quite true, the collapse of oil prices has had a positive economic outcome on the myriad oil despots the world round. However, this could have been accomplished without all the added pain, and problems which arose from the asset bubbles, and other problems.