Quote:
Originally Posted by wet dog
“It’s a shot in the arm for the economy,” he said. “It acts like a massive tax rebate to the American consumer.”
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And therein lies a kernal of truth.
Quantitative Easing 2 (QE2) ends as June wraps up. Right now the Congress says they want austerity instead of stimulus, and the Fed (Federal Reserve) senses an unwillingness to start QE3. But the economy is going downhill by a variety of measures - and elections are coming.
How, then, to have stimulus without increased debt and without QE3? They've hit upon an answer - one which I believe will fail. Later on, say about November of this year, worsening numbers may well cause the Congress and Administration to embrace new rounds of stimulus along with QE3.
The sad reality is that we are wasting the reserves and will derive no benefit. That's not leadership, IMO, but rather opportunism of the lowest sort.