After Dotcom bubble, Greenspan lowered Fed fund rate, wall street discovered if they package bad and good loans that can make lots of money and they did. In 2008 GFC happened, SPX went down 50%.
Fed Bernake came to rescue and bailed out all Wall street firms with an exception of Lehman Brothers to server as a lesson.
Bernake QE lasted four years and in return he asked, the responsible Wall Street to spend the Fed money more wisely this time based on Branches favour economy theory of "portfolio balance channel" (PBS). PBS siad, money has to go somewhere, so why not Gove it to rich people to invest and create job and let economy to grow.
Wall stetted took the money and instead of investing, put it in their own pocket through share buybacks and option bonds.
Fast forward to 2018 and Fed Powell, an opponent of QE, said enough is enough. He raised interstate's rate and market crashed in Jan 2019.
In July 2019, Fed went dovish and cut interstate's rate but it wasn't enough, so in Sept 2019 started the "Not QE{, market went up from there Makin a bigger asset bubble ever waiting to blow up.
Fed Bernake came to rescue and bailed out all Wall street firms with an exception of Lehman Brothers to server as a lesson.
Bernake QE lasted four years and in return he asked, the responsible Wall Street to spend the Fed money more wisely this time based on Branches favour economy theory of "portfolio balance channel" (PBS). PBS siad, money has to go somewhere, so why not Gove it to rich people to invest and create job and let economy to grow.
Wall stetted took the money and instead of investing, put it in their own pocket through share buybacks and option bonds.
Fast forward to 2018 and Fed Powell, an opponent of QE, said enough is enough. He raised interstate's rate and market crashed in Jan 2019.
In July 2019, Fed went dovish and cut interstate's rate but it wasn't enough, so in Sept 2019 started the "Not QE{, market went up from there Makin a bigger asset bubble ever waiting to blow up.