First, let’s recall what QE is meant to do. The aim is to buy government bonds to reduce the yield on low risk funds with the intention of pushing money into higher risk assets where it is hoped that the cash in question will be used to stimulate real productive activity, and so demand, and as a consequence inflation in due course.
Pretty much, yes, at least he’s finally got that right.
All that has happened is that bank’s balance sheets have been boosted by near enough free money that they have lent at a profit, banker’s bonuses have been maintained, speculation has continued and asset prices have grown,
Still not quite grasped it though, has he. Asset prices rising and pushing money into higher risk activities are the same thing. this is proof that QE worked, not a problem with QE.