Saturday, September 15, 2012

With QE3, We All Win -- Poor and Rich Alike

Today’s Federal Reserve announcement is a big deal. We’re not just getting another round of quantitative easing, but an open-ended one that will continue until the labor market improves.

And accommodative monetary policy will continue “for a considerable time after the economic recovery strengthens,” with short-term rates at or below 0.25 percent through mid-2015.

This is great news for the labor market and the economy, and the markets are reacting as such: As of 1:30 PM, the S&P 500 is up 1.3 percent on the announcement. This is consistent with past experience: We have repeatedly seen that when the Fed announces easing, the equity markets react favorably.

When the Fed wasn’t being so easy, it came under fire from (among others) Paul Krugman for acting in the interests of a “rentier class.” This is a group of wealthy bankers and bondholders that benefits from low inflation and doesn’t have to care about unemployment, and therefore desires excessively tight monetary policy. Read more.....


  1. You can' t spend your way out of debt. This is why friends don't let friends smoke crack.

    1. I couldn't have said it better.Read any rational economist that predicted the crash and they say the same thing,never worked before and won't work now,fasten your seat belts.

  2. This article is like many things in our modern times. The author thinks it and says it and so naturally it has merit. News Flash!!! It is garbage. The author points to nothing independent and measurable to support their assertion. Clowns like this are currently making policy. We are living in Wonderland.

  3. Wonderland for sure. We have a mental midget in the white house that must be saved from his incompetence by those with equal sub 50 IQs.

  4. COLLAPSE! This is all by design. R U Ready? Better get food,water,filters, and if you can afford it, stack some silver!


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