Jim Bianco Explains Why QE Failed, And Why The ECB Is Making The Same Mistake As The Fed

Saturday, March 7, 2015
By Paul Martin

by Tyler Durden
ZeroHedge.com
03/07/2015

“Today, if you own an asset, say stocks or a home, and it went up in price, you do not perceive it as permanent. You fear it could go back down and you spend none of that money. You are not going to alter your investment decisions or your business decisions. That is why the QE-programs did not work. The goal of the Fed was to push up asset prices. With that in mind, they do not want asset prices to go down because they think it will create a reverse wealth effect. QE has been all about pushing up markets and they are not going to throw that to the wind…. By pushing up asset prices ECB president Draghi is going to make the same mistake as the Fed.”

The Rest…HERE

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