The Fed reacted to the Great Recession with a large scale increase in the monetary base. This creates expectations ranging from runaway inflation to a concern that a recession will follow. Many have moved to the investing sidelines as a result of the uncertainty. The response to Money is more credit at low interest rates. The net outcome depends on whether this stimulus results in real investments that generate income streams that retire the incurred debt. If the real investments do not pay for themselves, there is only short term gain and long term pain.

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