The QE3 Is Sinking and We’re Just Rearranging the Deck Chairs

I could spend this blog post crowing about the Fed’s recent decision to print more money (er…uh…quantitative easing round three or QE3, as it is termed), but since I have found

that I am not alone in my doubts about its

effect on the economy, I will instead share links to others who echo these sentiments:

It punishes saving, .

It benefits the rich, says reporter Robert Frank of CNBC.

It creates a liquidity trap, says Peter Fisher of the Financial Times.

It does not resolve uncertainty in the economy, says Charles Gasparino of the New York Post.

Enough said.







Comments (7)

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  1. Hoover says:

    Quantitative easing.. Did China run out of securities to buy?

  2. Roget says:

    So let me get this straight. We are in a financial crisis because banks were making irresponsible lending decisions, and the fed chooses easing?! If they loan out too much it could lead to far more inflation. Why are we in this mess in the first place? Oh, that’s right. Because they loaned out too much.

  3. Lizze says:

    Well our government needs to set the table and place those chairs in the right order. So the economy can have it’s just desserts and balance out this recession.

  4. August says:

    I think the Federal reserve is in a holding pattern until the government gets it together and implements a sane fiscal policy.

    However I do not see a huge risk of inflation; as the fed sees inflation rise they will decrease the rate of money supply growth to control inflation. It may decrease growth, but that is not 15% inflation to recession like the 1970s.

  5. seyyed says:

    too early to make a call on this one-studies have shown that it would increase GDP and add more jobs so there is definitely a debate to be had.

  6. Bobby Johnson says:

    I am not a fan of QE3, I wish the fed would pressure the govt to adopt some sort of debt reduction plan.

  7. Alex says:

    Sounds like a bad plan to me.

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