Yesterday I posted saying that QE1, QE2 and QE3 in Japan did not cause any stock market noticeable boom. Which means that for it to have caused a speculative boom in America other factors must have been present. We also know that there have been speculative booms since the 17th century, including the one known as the tulip mania." I have to remind you that in your mind the boom has been caused by QE money having moved to the stock market as clearly stated here:
"Like TA, FA becomes fairly unreliable when trillions of new dollars are created and injected into the market …. instead of causing direct price inflation of goods and services due to each dollar being worth less because there is now many more of them, the effect has been transferred into/onto stocks and property. Hence the ‘boom’ in stock prices and the ‘boom’ in house prices since 2008 …. the extra trillions crreated and injected have just been put into stocks/buybacks/properties etc. It’s not real … as will be found out by the world when the paper money is seen to be of little/no wort" which represents your version of the quantitative theory of money.
Tulip mania (Dutch: tulpenmanie) was a period in the Dutch Golden Age during which contract prices for some bulbs of the recently introduced and fashionable tulip reached extraordinarily high levels and then dramatically collapsed in February 1637.[2] It is generally considered the first recorded speculative bubble"
I am going now for a walk and maybe will come back latter on.
