http://www.cnbc.com/id/49031991/Does_Quantitative_Easing_Mainly_Help_the_Rich

http://www.moneyweek.com/news-and-charts/economics/global/bill-bonner-qe-favours-the-rich-60512

This is an amusing thing about the elections this year... since Republicans are against QE, Democrats are for it.

QE greatly helps out those with assets, espiecally financial assets. 

Essentially it's a BIG valuation increase for those high in assets.  "Wealthiest .01%" or whatever.

At the low bargin cost of food and other commoddities (and products made from them) to get more expensive.

I wouldn't say it help with financial assets too much, especially dollar based assets since you have dollar devaluation with QE. But the rich are more likely diversity their holdings to chase higher yields. But your right, QE has more determent to the base of democrats (seniors, minorities etc) but they are all rah rah for it, strange

Bonds and Stocks are financial assets.  Look at how high stocks rose on QE news... though yeah... Democrats pull pretty heavy from big investment banks and rich people.  It's just they like to pretend they don't.

Look at Dodd Frank... a gift for huge investment banks to weed out competition portrayed as "punishment" that makes banks small enough to fail.

The only thing banks really had any issue with in Dodd-Frank is the Voelker Rule.

Doesn't it hurt bondholders? You'd figure weakening the currency would hurt bondholders, because with my student loans, for instance, if the currency depreciates by more than projected, they can't change the amount that i owe until real dollars, so they end up getting screwed.

Hm.  Guess this never posted last time.

Actually a LOT of money is in high yield bonds which track like stocks.

Monetary stimulus is the narcotic pain killer of economics ... It does nothing to address the underlying problems, it only provides short term relief, and it is addictive.

Agreed

In some cases it's an important tool. Japan currently needs the kind of massive quantitative-easing the US is going through, for one.

Yes and no...

Japan is a country essentially built for QE.

As it is... Japan seems like a patient in a coma, that's getting painkillers until it's inevitable death.

I can't really see a way out for the Japanese.

The  Japanese have really low government bond rates... largely due to two main factors.

1) The Japanese are savers... and conservative savers at that.  Your average Japanese person saves a lot of money... and are more then willing to put it in mild government bonds with weak yields.  

The problem?   The Japanese are getting old.   The percentage of old people spending their bonds is going to greatly increase... and it won't be on lush consumer goods.  It will be on the needs and other stuff they are buying now why they work.  Essentially bond yields are going to go up... with zero bonus to the economy.

2) Japanese Pension funds - They buy a   LOOOT of Japanese government bonds.

The Problem?  Well old people getting old for one, like above.   Additionally, they buy TOO MANY government bonds.  Espiecally the government owned pension funds.   The Pension funds don't really have the growth they're supposed to be having.  Which means either

A) The government will have to make up the difference and sell more bonds to cover the debt (and raise yields) or run deficits (and raise yields.)

B) The government will have to cut benefits.  Causing the elders to increase their bond spendign and selling. (raising yields.)

Something like 2017-2020 don't be surprised if Japanese rates start to wobble and we see BIG issues then.  Espiecally if a big disaster hits.

There really doesn't seem to be much choice for them sadly... as the US pushes Japan through QE through our own useless QE that drives up the Yen.

Oh... and as sign of a horrible effect that's already happening....

http://www.businessweek.com/articles/2012-08-30/in-japan-retirees-go-on-working