What does that mean? Are you referring to the inflation-adjusted interest rates? I'm sort of following but make it explicit for me. The 25% bonus the rich got was from... the Fed buying their toxic assets through QE? Or through $12 trillion in liquidity saving the financial system? As for inflation-prone sectors, I've always been confused by healthcare. While healthcare seems to be an atypical good (people would theoretically pay or take on any amount of debt for good health, so the rise in prices seems natural), I don't see how the insane amount of administrative bloat and regulation naturally follows. _____________________ Also, what do you think about interest on reserves? In an economics class in Korea, I'm being taught that it's a wonderful innovation which gives policymakers another instrument through which to affect interest rates. To my mind, it seems like the banking industry just got a permanent subsidy that no one on Main Street asked for, let alone the fact that we don't know the long term effects of paying interest on reserves are. Doesn't it reduce the efficacy of open market operations? What if we keep having to raise the interest-on-reserves to incentivize banks to not lend out that money since it would create inflation? Ben Bernanke is pretty proud of himself, what with creating a new dimension of central bank influence. (something like half the money in the world is currently under negative interest rates, something not seen in the history of banking)
That thing Bernanke and posse did? They basically made it so that if you were a member of the investment class, you got a 25% bonus on your money so you'd keep spending it.