Case in point, the $80 bln in profits that the Fed earned and turned over to the Treasury last year, was from income earned on the assets it bought. That was income that would have been earned by the private sector if it still had those bonds and securities.
So while the net change in wages and salaries since 2008 has been an increase of $317 bln, personal interest income dropped by $425 bln. That's not a stimulus by any means. It's mind boggling that the mainstream economics community and the Fed itself, doesn't understand this when they incessantly call for more "stimulus."
Unlike the Market Monetarists and New Keynesians, who have been constantly begging for the Fed to “do more”, this is why myself and many others have been wishing the Fed would do far less. While stimulating present paper profits in the stock market through negative real yields, the Fed’s actions are actually removing income from the private sector. Instead of stimulating the economy, ZIRP and QE help ensure the economic recovery remains weak. These actions will only further the reliance on credit and exacerbate downturns going forward.