Why the Fed's strategy won't work
Aside from the last line, which suffers from some serious cult-of-the-presidency thinking, L. Randall Wray's pessimistic take on the proposed asset-purchasing program is worth reading.
By
Ezra Klein
| October 18, 2010; 3:23 PM ET
Categories:
Federal Reserve
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Wray missed one thing. While QE can't and won't accomplish what it's opponents hope it will, it can blow more speculative bubbles. Income starved investors are jacking up prices on gold, junk bonds, and emerging markets just as fast as the Fed can jack down the yields on treasuries.
Posted by: bgmma50 | October 18, 2010 4:16 PM | Report abuse
proponents, not opponents.
Posted by: bgmma50 | October 18, 2010 7:19 PM | Report abuse
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