When quantitative easing was first announced I thought it was a bold move that will do something for the economy, however now looking at its effects I can see that by nature the banks are having to hold the extra money they are getting from the process. They have no incentive to pass that on the savers and businesses.

I think a wholesale cash payment like the Americans and Australians might have been a better way. People are going to do one of three things:

1, Pay off debt
2, Invest
3, Spend it

All three have a direct benefit to the wide economy and banks. However quantitative easing just benefits the banks. The downside of giving money of course is that some people will spend it on goods that are imported, however this would be a 1 in 3 chance of that and then a 50% chance that its an imported goods.

For the 30 million tax payers the 150billion QE program could have been spend giving each of them £5,000!

That would have taken a bite out of my mortgage.

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