Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Economy
In reply to the discussion: Weekend Economists Out on an Idle Idol Idyll November 15-17, 2013 [View all]xchrom
(108,903 posts)18. Who Are The Winners And Losers Of Global QE?
http://www.businessinsider.com/mckinsey-study-on-global-qe-2013-11
A research group at McKinsey & Company set out to follow the distribution of money in the economy as a result of post-crisis central banking. The team examined the low-interest rates, and tools conventional and unconventional central banks have been using to keep rates low.
From a profit standpoint, the winners included governments, non-financial corporations, and in the case of the U.S. banks. Household income, pensions and insurance, and the rest of the world have lost in terms of net interest income.
The researchers examined the policies of the U.S. Federal Reserve, the Bank of England, the European Central Bank, and the Bank of Japan. They outline how originally, the banks adjusted short-term interest rates through conventional measures, and drove the rates down. When they could push no further, having reached zero lower bound, the banks used unconventional measures to retain the low-interest levels, including large-scale asset purchases.
This is known as QE in the U.S., or the Feds bond buying program. At some point in time, all the central banks participated in a similar program. The result, the report says, is that the combined balance sheets for the banks grew between 2007 and the second-quarter of 2013 by $4.7 trillion dollars.
Read more: http://wallstcheatsheet.com/stocks/mckinsey-on-crisis-banking-who-is-profiting-from-policies.html/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+WallStCheatSheetCore+%28Wall+St.+Cheat+Sheet%29#ixzz2koJMYG5k
***I KNEW IT WASN'T ME.
A research group at McKinsey & Company set out to follow the distribution of money in the economy as a result of post-crisis central banking. The team examined the low-interest rates, and tools conventional and unconventional central banks have been using to keep rates low.
From a profit standpoint, the winners included governments, non-financial corporations, and in the case of the U.S. banks. Household income, pensions and insurance, and the rest of the world have lost in terms of net interest income.
The researchers examined the policies of the U.S. Federal Reserve, the Bank of England, the European Central Bank, and the Bank of Japan. They outline how originally, the banks adjusted short-term interest rates through conventional measures, and drove the rates down. When they could push no further, having reached zero lower bound, the banks used unconventional measures to retain the low-interest levels, including large-scale asset purchases.
This is known as QE in the U.S., or the Feds bond buying program. At some point in time, all the central banks participated in a similar program. The result, the report says, is that the combined balance sheets for the banks grew between 2007 and the second-quarter of 2013 by $4.7 trillion dollars.
Read more: http://wallstcheatsheet.com/stocks/mckinsey-on-crisis-banking-who-is-profiting-from-policies.html/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+WallStCheatSheetCore+%28Wall+St.+Cheat+Sheet%29#ixzz2koJMYG5k
***I KNEW IT WASN'T ME.
Edit history
Please sign in to view edit histories.
66 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
RecommendedHighlight replies with 5 or more recommendations
Trans-Pacific Partnership: "We Will Not Obey"; Building a Global Resistance Movement
Demeter
Nov 2013
#3
and people wonder why i stay single -- i complain constantly about my dirty dishes taking
xchrom
Nov 2013
#31
Debt collectors face new rules under proposal from Consumer Financial Protection Bureau
Demeter
Nov 2013
#5
5 states where homeowners lost the most money / Home values plummeted by $100,000 in many areas
Demeter
Nov 2013
#6
The Chinese Government Looks Like It's Reining Back Its Intense Control Over IPOs
xchrom
Nov 2013
#17
JIM O'NEILL: We Shouldn't Keep Telling The Emerging Markets To Do Things 'Our Way'
xchrom
Nov 2013
#20
Bloomberg Reporter Suspended Over China Leak, And Now A Round Of Layoffs Might Be Coming
xchrom
Nov 2013
#53