free money liquidity is floating around Europe, too. Courtesy of ELA, LTRO, OMT and probably a few other entries in the alphabet soup of ECB programs that I am neglecting.
This cheap money works the same way in Europe as it does in the United States. Large entities with access to these funds like banks, corporations, governments and rich people do very well as we can see by the rising stock market.
If you are a European worker, the situation is becoming more dire by the day:
This is the Cantillon effect in action. Cheap money flows to the rich, and they have themselves a good, old-fashioned economic boom. In the meantime, zombie companies are allowed to continue their existence due to cheap financing. The market never clears the companies out of the way so that new growing, enterprises never materialize creating economic growth.
Sometimes, I think that the price we will pay for all of this monetary manipulation is not a catastrophic crash but years of stagnation, like Japan.