burnsy562000

QE was pretty sneaky though. Everyone thought QE2 would mean lower rates. But, starting in Aug. ‘10 at Jackson Hole, rates started moving up. The objective of QE2 was to force investors into risky assets - corporate bonds, stocks, etc. Once QE2 ended, rates fell rather quickly, as did the stock market.
ZIRP, Operation Twist, QE2.5, and the rest are all designed to do the same thing - build up the wealth effect.
Mortgage refi is a horrible idea. It doesn’t fix any of the problems in the housing market. It’s another band aid that may artificially prop up home prices for a short time, but doesn’t do anything about all those that are upside down on the mortgages, or the 5 years of shadow inventory. That’s the real problem.
I would be behind a decent infrastructure spending plan though. It’s in need of a major update.