Quoth the Raven
· QTR’s Fringe Finance
· May 25, 2026 at 12:22
· ⏱ 15 min read
| Read on Substack ↗
Summary
The article argues that bipartisan support for perpetual Fed monetary expansion—QE, near-zero rates, and liquidity injections—has permanently distorted markets and fueled extreme wealth inequality, funneling gains to asset owners while eroding purchasing power for the middle and lower classes. For markets, this means traditional valuation metrics are unreliable and the system is dependent on continuous liquidity, making any withdrawal potentially catastrophic, but the author offers no actionable trade or position.
•The Federal Reserve's balance sheet exploded from under $1 trillion before 2008 to nearly $9 trillion after the pandemic.
•There are now roughly 430,000 American households worth more than $30 million, including 74,000 households worth over $100 million.
•The inflation-adjusted wealth of the top 0.1% has increased more than thirteenfold over the past fifty years, while the bottom half struggled to maintain positive net worth.
•Nearly 72% of the wealth held by the top 0.1% consists of stocks, mutual funds, and private businesses—assets supercharged by QE and low rates.
•Both President Trump and Senator Elizabeth Warren have pushed for looser monetary policy from different ideological angles, illustrating bipartisan consensus on easy money.
•The article criticizes Modern Monetary Theory as leading to endless money creation, price distortions, and accelerated inequality.
•Luxury demand (Ferrari, Hermès, Manhattan real estate, private aviation) continues booming even as middle-class consumers pull back, indicating a bifurcated economy.
•The author notes that the bond market may eventually need a bailout, but offers no specific securities or trades.