Brian Wesbury, Chief Economist for First Trust Portfolios is one of my favorite economists and he is even more of an optimist than I am. One of the reasons he is so optimistic is this-from 2008-2011 Quantitative Easing by the Fed did NOT make to businesses or consumers. Instead this extra money wound up in excess reserves at the Fed as our country's fiscal policies inhibited growth. This $3 trillion sat on the "shelves" at the Fed earning a small amount of interest with very little of it reaching Main Street. This is one reason why our economy grew so slowly for so many years.
This time, Congress and the President have directed or required that this money be DELIVERED into the hands of businesses and consumers. Thus, the M2 Money Supply is up nearly 70% on a year over year annualized basis over the last 3 months. In other words, the money supply has grown by roughly 17% in the last 3 months. This is HUGE! This is bound to help our economy recover much faster than 10 years ago.
One of the potential downsides in the future could be this though...higher inflation rates and thus higher mortgage rates IF the M2 Money Supply continues to grow quickly. Thus, if you are going to buy more real estate, NOW IS THE TIME TO DO SO when you can take advantage of record low interest rates.
You can watch Brian's video for yourself at the link below-