Snoot, re QE ...
QE is the label for Quantitative Easing. It refers to making it Easier for Quantities of Money to Flow through an economy. Money is nothing more than a medium of exchange, which makes it easier to exchange goods and services.
QE stands on its own and does not need any other label.
There is no value to be added by arbitrarily fixating on a man's last name, especially when Q and E and QE have all existed for hundreds of years.
Approximately half of QE is the purchase by the Fed of Mortgage Backed Securities, which are asset-backed securities. The purchase of those MBSs helps to hold up the home mortgage industry, consisting of lenders and borrowers. The Fed, and ultimately the U.S. Treasury, will make a huge profit on the deal.
The rest of QE is the injection of additional money into the economy. That money comes from the Treasury then goes to the Fed then to the Fed's regional banks then to local banks where it is hoped that it will be lent out to the general public and their businesses. Given that banks like to make profits, and that the main way they do that is by loaning out money, having that extra money in their accounts means that it is likely that it will be lent out. In other words, the flow of money increases; which is equivalent to saying that economic activity increases, and it does not matter one iota what other name one gives that operation.
To the extent that there may be banks that do not loan out that extra money right away, the extra money at least increases their reserves which makes those banks safer places to temporarily hold your money. Will they hold it forever? Not if they think they can safely loan it out to trustworthy borrowers. How do banks find more trustworthy borrowers? They increase their standards and they crosscheck the borrowers' qualifications before loaning out the money.
It doesn't have to be any more complicated than that.
AI
