Due largely to
quantitative easing, there's been a recovery of $16 trillion in household wealth since early 2009 according to the
latest Federal Reserve figures. But QE has not generated real fundamental economic growth. Instead, it has buttressed the stock portfolios of wealthy people and the residential home values of the middle class. In fact, it went mostly to the 24 million households who hold about 72% of the nation’s wealth.
About $9 trillion of it went right onto the balance sheets of non-financial corporations. Some was due to the rebound in asset prices like real estate, which rose some $3 trillion. Another $4 trillion came from the rise in the value of the non-financial corporation’s financial assets.
