Effects of Quantitive Easing on......

1st question is government doing this for profit or the opposite?

I have run across a book "Credit Crunch" by Graham Turner (2007).
He worked in Japanese banking industry for abut 20 years. Japanese quantitative easing started in late 1990s, with the effects described in the book.
Can`t remeber the impact on corp bonds prices or yield, but i suggest to take an insight into Japanese bond prices indexes after japanese gov intervened.

best regards

Stephen King sums up the uncertainty nicely here:
Stephen King: The policy to print money is right but we must be told how it works - Stephen King, Business Comment - The Independent

I read last week that they expect to lose about £150m from the £75bn input.
If you do the numbers this suggests that they will stay in until the gilts expire, i.e. the dividends will pay back most of the investment.
Not sure how inflation (or deflation) figures in that though. Perhaps they aren't either !
Glenn

This is nothing more than pure CREDIT EXPANSION. The benefit is 0. In the longterm there will be another crash and another wave of credit to help pay for the ridiculous debt levels that we have. This debt needs serviced.

If you are already in debt how can you service it? Print more money in the ST?

Do we not need to rethink the fundamentals underlying our greed?

It's an expansion, but credit has massively contracted.

I heard rumours they may buy up corporate bonds, which would be good for them.

As to the infaltion question - I saw two economists completely divided and arguing with each other on that. It seems pretty clear to me that no one can say since no one knows who much money will be written off, and how much QE will take place.

I would say that IMO the hole created by the crunch/recession is already, and will turn out to be even bigger than all the mooted QE. I imagine they'll carry on QE-ing until they get some sort of effects. Unfortunately I don't see much clever lending being done in this climate. I think people still underestimate the scale, and inflation is a long way off.

They have, in fact, promised up to £50bn of corp bond purchases...

Do you think it is possible that inflation will pick up faster if others follow. Demand in commodities, excluding oil, will reach the levels we saw last summer and then we will be no better off.