Tuesday, August 9, 2011
Think of QE as a laxative
"It needs to launch quantitative easing on a massive scale to head off a eurozone debacle, if necessary purchasing half the entire stock of Italian and Spanish debt, they argue. Stephen King, HSBC's chief economist, said the ECB should drop its ideological opposition to QE and embrace easy money in "exactly the same" way as the US Federal Reserve. (Nouriel agrees, but Frankfurt says NO). Ideas?