ECOMINOES: Fed Liquidity Pumping Good For Wealthy, Bad For Rest
By Seth Mason
The premise is simple: the wealthy have a disproportionate amount of their net worth in investments, and the Fed has been propping up the stock market and inflating an asset bubble. Therefore, the inflation-driven economic recovery has been robust for the richest 7% while weak to non-existent for everyone else. And never forget, wealth and exposure to inflation are inversely-proportional. In other words, those with less money spend a greater percentage of their incomes on essentials–food, gas, etc.–whose prices have been rising as a result of the asset bubble.
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