The Lords of Easy Money

“[Fed] propaganda belied a profound, ugly truth about both QE and the ten years of zero interest rate policy (ZIRP) Bernanke used to pump the finance sector full of money: it didn’t work. Whether by accident or design, ZIRP and QE — which were premised on the highly dubious belief that creating a “wealth effect” in the upper ranks of society would bleed downward — not only incentivized extreme risk-taking and punished ordinary savers, but more importantly provided direct incentive to hoard money rather than create jobs.”