"Quantitative Easing" is unloved and unappreciated-but it is working, announced the FED.
Even thought this method have received criticisms from many, it has been proven that quantitative easing is working and has resulted in lower yields and higher share prices. The dollar also devaluates.
"These easier financial conditions are supposed to boost growth through three channels. First, lower real yields spur borrowing and investment. This channel is bunged up: many households cannot borrow because their homes have fallen in value and because banks are less willing to lend. But the remaining two channels remain open. Higher share prices have raised household wealth by some $1.4 trillion, which will spur some spending. And the lower dollar should help trade. American factory purchasing managers reported a sharp jump in export orders in October and a drop in imports."
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