QE has been fantastic for the capitalist class, and the ruling class.
But for the rest of us, it has made life a living hell on Earth. A survival of the fittest.
Life is now a reality of Mad Max sitting behind the steering wheel of a Prius, driving for pennies a day, if you can even make a profit after all the hidden expenses.
Life is now a fierce competition for resources, where you can’t even make your rent, or afford to start a family, or even to have children.
Meanwhile, the rich just laugh at you: “Here’s a dollar for your tip, see I believe in trickle-down economics.”
The lucky ones were those in the right technology companies, or those with the right medical or professional certifications.
Because of QE, there is now more homelessness. Even with people who shouldn’t be homeless.
The rents are much higher, and have kept pace with expensive mortgages. The landlords raised the rents just because they can. The rents in some areas can easily exceed $3000/month. This squeezes the rest of us that couldn’t afford a house before 2007. And after the crash, nobody was getting any mortgages, after they locked down all borrowing. And now, the higher rents eats up our earnings, that reaching that 20% down payment is an elusive dream. How do you even save for 20% of a $700,000 house ($140k), while paying your rent and bills?
The price of a house seemed to have gone up on average about $50,000 per year, for the past 4 years! Can most people even save up this much money a year? The same house that was listed for $500,000 just 4 years ago, in 2016, is now listing for $700,000 today. And there wasn’t even any renovations done on it.
Because of QE, the interests are so low, that it jacked up prices for everything: housing, stocks, education.
If you had $100,000 sitting around in cash after 2008, and was daring enough to plow that money back into the stock market and sit on SPY, then today, that net worth would be $270,000. Not bad, you would’ve made a cool quarter million.
The problem is that the capitalist class had $10 million dollars sitting around in cash, and if they aggressively plowed all that money into stocks, then they would’ve netted $27 million instead!
And some may have done that with their own money. But the way the capitalist class did it instead, was through their companies, with the share buy backs. They took public money, easily printed by the Fed, at low interest, to buy back shares to reduce availability, to force a supply and demand run. The stock goes up, it looks nice on the quarterly balance sheet, and they pay themselves a very very nice bonus. Which they then use to buy up real estate assets, in the form of LLCs and special corporations. They were the fox guarding the hen house!
This is the key thing that is driving inequality. And with the refusal of cities and governments to build more housing, to meet public demand, then it forces this situation on the rest of us. The rest of us are forced to compete, when the game is rigged against us.
So to the question of who are the winners in this QE fiasco? It is certainly not the normal people. It is the capitalist class. The rich, the wealthy, and those that own the corporations, and make all the rules.
When will the normal people rise up with their pitch forks and torches, and realize what the capitalist class has done to them?
Oh well, I guess they’re too busy drowning their sorrows in their iPhones, Facebooks, YouTubes, and instagrams, to bother seeing what has been done to them.
But for the rest of us, it has made life a living hell on Earth. A survival of the fittest.
Life is now a reality of Mad Max sitting behind the steering wheel of a Prius, driving for pennies a day, if you can even make a profit after all the hidden expenses.
Life is now a fierce competition for resources, where you can’t even make your rent, or afford to start a family, or even to have children.
Meanwhile, the rich just laugh at you: “Here’s a dollar for your tip, see I believe in trickle-down economics.”
The lucky ones were those in the right technology companies, or those with the right medical or professional certifications.
Because of QE, there is now more homelessness. Even with people who shouldn’t be homeless.
The rents are much higher, and have kept pace with expensive mortgages. The landlords raised the rents just because they can. The rents in some areas can easily exceed $3000/month. This squeezes the rest of us that couldn’t afford a house before 2007. And after the crash, nobody was getting any mortgages, after they locked down all borrowing. And now, the higher rents eats up our earnings, that reaching that 20% down payment is an elusive dream. How do you even save for 20% of a $700,000 house ($140k), while paying your rent and bills?
The price of a house seemed to have gone up on average about $50,000 per year, for the past 4 years! Can most people even save up this much money a year? The same house that was listed for $500,000 just 4 years ago, in 2016, is now listing for $700,000 today. And there wasn’t even any renovations done on it.
Because of QE, the interests are so low, that it jacked up prices for everything: housing, stocks, education.
If you had $100,000 sitting around in cash after 2008, and was daring enough to plow that money back into the stock market and sit on SPY, then today, that net worth would be $270,000. Not bad, you would’ve made a cool quarter million.
The problem is that the capitalist class had $10 million dollars sitting around in cash, and if they aggressively plowed all that money into stocks, then they would’ve netted $27 million instead!
And some may have done that with their own money. But the way the capitalist class did it instead, was through their companies, with the share buy backs. They took public money, easily printed by the Fed, at low interest, to buy back shares to reduce availability, to force a supply and demand run. The stock goes up, it looks nice on the quarterly balance sheet, and they pay themselves a very very nice bonus. Which they then use to buy up real estate assets, in the form of LLCs and special corporations. They were the fox guarding the hen house!
This is the key thing that is driving inequality. And with the refusal of cities and governments to build more housing, to meet public demand, then it forces this situation on the rest of us. The rest of us are forced to compete, when the game is rigged against us.
So to the question of who are the winners in this QE fiasco? It is certainly not the normal people. It is the capitalist class. The rich, the wealthy, and those that own the corporations, and make all the rules.
When will the normal people rise up with their pitch forks and torches, and realize what the capitalist class has done to them?
Oh well, I guess they’re too busy drowning their sorrows in their iPhones, Facebooks, YouTubes, and instagrams, to bother seeing what has been done to them.