Too much faith is being placed in untested economic theories that may or may not work, or may or may not even be correct
The Fed is stalling for time and hoping that the economy will inexplicably roar back to life
We think Tim Geithner (with Bill Dudley as an alternative) will take over the Fed when Ben Bernanke steps down next January, and it seems by all indications that the table is already being set.
The whole situation mirrors the late 1960s, during a period that led up to the «Nixon Shock.»
There should be very little pretense among objective observers that last week’s perpetual QE announcement could actually provide real economic stimulation.
Risky assets continue to surge, turning a blind eye to the weakening global economy.
Draghi and Bernanke know that markets need to be talked up, and they continue to do so unapologetically.
Soon in stock markets everywhere… (cartoon)
A critical response by Chairman Bernanke would be welcomed…
The Twist in essence reduces to a bank subsidy.
El problema es que luchar contra la recesión a golpe de QE es como luchar con gasolina contra un incendio.
I don’t believe the Fed will play «chicken» during an election year, and when things turn ugly they will announce QE3 and that will kick the can down the inflationary road.