Pragmatic Capitalism

Practical Views on Money & Finance


This is some great analysis from Jim Bianco at Bianco research.  Mr. Bianco finds that QE2 has no wealth effect on the middle class.  In fact, it HURTS the middle class!   This is also in-line with Robert Shiller’s analysis of the wealth effect.  In essence, this program isn’t going to help the economy via a wealth effect. It is more likely to hurt it.  Ethan Harris of Merrill Lynch makes an alternative case, but doesn’t provide a whole lot of evidence:

(Figure 1)

Viedo attached below:

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Cullen Roche

Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering asset management, private advisory, institutional consulting and educational services. He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance and Understanding the Modern Monetary System.

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