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Comment by nums

"Helicopter" Ben famously said that the Great Depression could have been averted by throwing $100 bills from helicopters to pump liquidity into the economy.

I believe the implementation of this concept via the Fed (bank of banks) is the real issue. Basically, liquidity goes to the banks. Anyone having a relationship with banks gets access to this liquidity and benefits. Of course, we plow these "gains" back into assets (hard or stock market), this drives up prices, and we get asset inflation. For the person renting an apartment, leasing a car, and with credit card debt ... well, they lose. The trickle down doesn't work. You can interpolate and extrapolate from this brief comment, and I believe that this is the fundamental source of the expanding rich/poor divide.

parent nums 5 years ago

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