Saturday, September 7, 2013
Going off
Quantitative easing is past its due date
Is the Federal Reserve's stimulus working to help the economy, or is it hurting?
4 thoughts on “Going off”
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alan says:
Talk of “tapering” or not could be irrelevant. If Obama decides to throw a few Tomahawk missiles in the direction of Damascus, who is going to buy all that US debt?….just his war sponsors Qatar and Saudi Arabia (Al-Qaeda are a bit short of cash).
This could have dire consequences to Western nations as it’s over indebted governments fish around to see where they can confiscate money from within their economies & pension holders (that’s us).
We’ve already seen it in Cyprus, then Poland. Osborne has also “absorbed” the Post Office independent pension fund.
Fortunately, John Redwood has written to the US Congress asking them to back off. At least one Conservative has the right idea – now for the rest.
dill says:
I, for one, will be glad to see the central banks back off, quit subordinating themselves to the fiscal authority and allow proper reform in all the areas that need addressing. Time to man up.
icarus says:
“At most, it may be possible to make an argument that the stimulus known as quantitative easing is helping Wall Street stock prices” (and other asset prices)…..”and it has increased income inequality”. She could have added that financial and non-financial corporations have increased their leverage for speculative purposes to pre-crisis levels (according to Moody’s), and that margin debt on the NYSE is at record highs and junk bond yields at record lows. So alan’s pension holders @1 are having to take the risk swimming with the Wall Street sharks to get a return on their money. QE is working…..for the right people.
dill says:
…financial and non-financial corporations have increased their leverage for speculative purposes to pre-crisis levels (according to Moody’s), and that margin debt on the NYSE is at record highs…
That’s what I suspected, icarus. Precarious.