The Wages of Bernanke: Winners and Losers from QE3Submitted by FrankX on Thu, 09/20/2012 - 09:23
Writing for Forbes, Mark Hendrickson provides an excellent breakdown on QE3. What it is, who gets it, what its effects are likely to be.
The only doubt about the Federal Reserve’s decision to embark on a third round of quantitative easing was about when it would begin. It was a foregone conclusion that Chairman Ben Bernanke’s Fed would resort to more quantitative easing. Under his leadership, the Federal Reserve has become a one-trick pony, always trying to inflate the supply of money and credit in response to economic downturns. When one considers that those downturns were the inevitable aftermath of bubbles fed by the Fed’s inflationary policies, then it is rank quackery for the Fed to prescribe the same medicine that triggered these boom-bust cycles as the cure.
Like the earlier iterations of QE, QE3 is pernicious public policy based on faulty economic notions. Let’s examine some of the fundamental problems with QE3.
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