Seen everywhere in last U.S. crisis, moral hazard is nowhere in this one
The statement about the lack of inflation from QE and other stimulus programs from 2008 is pretty questionable. There&#x27;s been little inflation as measured using usual consumer price indices, but the construction of those indices is typically fairly focused on consumer goods and underweights the assets that rich people tend to invest in (stocks, real estate, bonds, etc).<p>The QE and stimulus programs from 2008 were significantly more targeted toward the upper and upper-middle classes (arguably without that much trickle-down), and so there wouldn&#x27;t be much significant inflation as measured by consumer price indices.<p>But if we look at the assets that rich people invest in (since it&#x27;s mostly wealthier people who benefited from the 2008 stimulus programs), then I&#x27;d say there&#x27;s been a significant amount of inflation - P&#x2F;E ratios for stocks have been historically high in the last few years, real estate in desirable cities has gotten significantly more expensive, and bond yields have been low.<p>We seem to be already seeing some of the same, with the stock market being pushed up by the Fed&#x27;s commitment to 4T+ in stimulus this time around and ever lower interest rates.