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A comment on What Economists Still Don’t Get About the 2008 Crisis. Parent comment

Re:What Economists Still Don’t Get About the 2008 Crisis by pas on Sunday August 05, 2018 @11:12AM (#17691700)
QE bought a lot of long term junk-ish bonds (full of "AAA housing"), no?

QE was the bridge between the two sides of the chasm, hence it's not visible on the graph. We see a rapid fall, a smooth bottom and a nice rise, but it could have been simply a big crash at the bottom and nothing for a decade.

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Re:What Economists Still Don’t Get About the 2008 Crisis by pdonis on Thursday August 16, 2018 @12:27AM (#17771879)
> QE bought a lot of long term junk-ish bonds (full of "AAA housing"), no?

No. QE bought T-bills in order to exchange them for increases in the banks' account balances at the Fed.

TARP funds bought junk-ish bonds back in 2008-2009, but all that did was make banks and financial institutions not go bankrupt from being forced to make subprime mortgages for several decades due to the federal government's policy to "encourage" home ownership.

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