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tatupu70


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Registered Sep 22, 2009

tatupu70's most recent comments:

  • On 24 Oct 2014 in QE 101 tatupu: How Quantitative Easing Contributed to the Nations Inequality, tatupu70 said:

    mell says

    No they didn't - except for our resident clairvoyants. That was the whole premise of the "stimulus"

    Yes, they did. The stimulus was to create demand.

    The rest of your post is moot because you're wrong.

  • On 24 Oct 2014 in QE 101 tatupu: How Quantitative Easing Contributed to the Nations Inequality, tatupu70 said:

    mell says

    Ah but they didn't. Why acquire even more assets at considerable tail risk? Once the Fed removed all the tail risk it was a no-brainer. A house is just one example of such an asset, but one of the important ones since the housing market is where a considerable amount of the fiat money that removed the tail risk went.

    Of course they did. It's easy to account for tail risk in a present value calculation and the wealthy certainly can and do. When the price is low enough, they buy.

  • On 24 Oct 2014 in QE 101 tatupu: How Quantitative Easing Contributed to the Nations Inequality, tatupu70 said:

    mell says

    Exactly - nobody was buying, except for Iwog of course ;) But when the Fed telegraphed that they are going to flood the place with freshly printed fiat no matter what everybody who had some started buying, the wealthy of course have most at their disposal => huge increase in inequality. It's really simple.

    I'm not talking about buying houses. I'm talking about buying any income generating asset. The wealthy have the means to buy when assets are undervalued and they do. It has very little to do with Fed action or inaction.

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