Central Banks are Making the Rich Richer

There was a Comment article today in the US print edition of the Financial Times with the title, Central Banks are making the rich richer.  The article was penned by Paul Marshall, a hedge fund manager, and it basically suggests that Quantitative Easing (QE) has put money, cash, into the pockets of big business, and the investor class.  This is exactly what I called out September in Where has all that money (from Quantitative Easing) gone?  

The market is not operating as a free market at all.  It is rigged and being managed (at least the Fed thinks it is managing the market).  Worse, a result of QE and the rich getting richer will be that inequality will be shown to have increased.  This will lead not to a poilicy for reducing the amount of money in the market (i.e. quantitative tightening) but for tax increases and redistribution efforts.  Oh dear – wrong weapon, wrong target, wrong time. 

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One thought on “Central Banks are Making the Rich Richer

  1. Pingback: Democratic Presidential Debate:  The Check is in the Mail | andrewgwhitedotcom

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