All this QE. Ever wonder what happens to it?
Well the Fed and Bank of England just love their banks and when they are feeling a bit under the weather, Bernie and Mervyn like nothing more than handing them free cash. What we mean here is they get some nice clean unencumbered cash to replace their worthless assets. More balance sheet means what they would have written off can be taken out and put in the bonus pool.
It is happening again in the UK. Right in front of our eyes.
Now I am as capitalistic as the next right minded individual and this interfering and distortion just cannot go on any more. Whilst the media get distracted by the high debt levels in Europe, the bankers get to enjoy more crispy printed currency.
Perhaps I should buy a tent after all ...
King the fool (ft)
Sir King the fool's fool (telegraph)
Fitch to downgrade Europe to Junk (bloomberg)
USA to abandon the middle classes: Poor and rich only.