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View Diary: Quick note on Krugman's neoliberalism (47 comments)

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  •  i know right! (3+ / 0-)
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    joe from Lowell, mskitty, bobdevo
    There is no proof that additional funding will reach the real economy
    The QE purchases certainly helped banks and other big players with their balance sheets. The conspiracy theory is they are all playing the stock market with this money. Which isn't exactly true.

    1. QE purchases are not all the same. So knowing which round is which is important when talking about the effects.
    2. Bank capitalization requirements have been raised, so they do have to keep more of that money on the sidelines, to cover potential losses.

    However, the statement above regarding no proof the funding reaches the real economy is conspiracy fact free propaganda. The truth is banks are making loans which wasn't the case in 2008 or 2009. This is where your credit line at the department store comes from. This is where your loan for your automobile comes from. This is where the small business loans are being born.

    With the stock market hitting new highs, we will probably see more conspiracy theories like this, when the truth is actually more nuanced than many here understand.

    -You want to change the system, run for office.

    by Deep Texan on Mon Nov 18, 2013 at 09:53:37 AM PST

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