The Federal Reserve Bank announced a few days ago that it would begin
implementing another round of pumping money into the economy, i.e.
buying $40 billion of mortgage bonds per month till further notice. This
is called Quantitative Easing, or QE. This particular round is called
QE3, because the Fed has already tried QE1 and QE2. It's sort of like a
doctor putting the paddles on a patient's chest and yelling "Clear!"
The
implementation of QE3 suggests that QE1 and QE2 did not have the
desired effect of pulling the economy out of the shitter. Isn't this an
example of Einstein's dictum regarding insanity, i.e. repeating the same
behavior and expecting a different result? Or is it simply an attempt
by Fed Chairman Ben Bernanke to keep the economy on life support long
enough to get Obama reelected?
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