Winners and losers in the Bernanke era

distributional+effects

One way to see who’s winning and losing in the current economy is to track the stock prices of Macy’s, Kohl’s and J.C. Penney, retailers who serve the middle class, with Tiffany, Coach and LVMH, retailers who deal in luxury goods.

Click on Sober Look: 5 Years of QE and the distributional effects for an argument that the Federal Reserve’s policy of quantitative easing (buying up bad investments of the big banks), together with the absence of a U.S. jobs program, helps the elite at the expense of the public.

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[Afterthought]   Here is a chart to show who has done well under current economic policy.

SP500+total+return

And here is a chart to show who has not done well.

Growth+in+hourly+earnings

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2 Responses to “Winners and losers in the Bernanke era”

  1. The Grey Enigma Says:

    Reblogged this on The Grey Enigma.

    Like

  2. whungerford Says:

    Monetary policy such as QE is needed because Congress won’t approve an aggressive fiscal policy. The FED might be willing to let interest rates rise sooner if the threat of sequester, shutdown, and default didn’t hang over the economy.

    Like

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