Last night, I discussed with the entrep class: the value of money, money vs currency, money creation of central bank, and the QE activities of US Fed Bank under Ben Bernanke. Massive liquidity infusion: printing of money, buying back securities/Treasuries injects liquidity to the system. They may be harmful to the economy. This causes inflation and currency devaluation.
The QE in the US has resulted in stock market rally; but not in creation of businesses and jobs.
Last night also, in the wake of a classmate in college who succumbed to a stroke, I met a former colleague in the college paper who is now a Managing Director for Loan operations. He says he reports to a Deputy Governor who we both know, comes from the same school and was involved in activism.
Those who sympathized with the family were mostly lawyers and bankers. Our classmate was a lawyer, and the wife is a senior officer of PDIC. Bank CEOs I heard visited the wake.
