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News Link • Economy - Economics USA

Is QE3 Yet Another Stealth Bank Bailout?

• http://www.nakedcapitalism.com,
You heard it first in the blogopshere. From the New York Times:
 
The Federal Reserve’s experimental effort to spur a recovery by purchasing vast quantities of federal debt has pumped up the stock market, reduced the cost of American exports and allowed companies to borrow money at lower interest rates.
 
But most Americans are not feeling the difference, in part because those benefits have been surprisingly small. The latest estimates from economists, in fact, suggest that the pace of recovery from the global financial crisis has flagged since November, when the Fed started buying $600 billion in Treasury securities to push private dollars into investments that create jobs….
 
A study published in February found that interest rates decreased, but only for companies with top credit ratings. “Rates that are highly relevant for households and many corporations — mortgage rates and rates on lower-grade corporate bonds — were largely unaffected by the policy,” wrote Arvind Krishnamurthy and Annette Vissing-Jorgensen, both finance professors at Northwestern University

We’ve argued repeatedly, as have others, that well targeted fiscal stimulus and more private sector debt restructuring were the right medicine. But Obama and his bankster friendly advisors had no stomach for much of either remedy.  

5 Comments in Response to

Comment by Ed Price
Entered on:

There is, of course, a limit as to how we argue with the enemies of freedom... the enemies of God.

Jude 1:9 (NIV):
But even the archangel Michael, when he was disputing with the devil about the body of Moses, did not himself dare to condemn him for slander but said, “The Lord rebuke you!”

Most of us fail at constraining ourselves, at least once in awhile. I know I do.

Comment by David McElroy
Entered on:

Panochatter, you again reveal yourself a small and ignorant person in claiming I "talk like the Devil." First, I do not take the Lord's name in vain, ever. I do not curse. Secondly, you ignorantly think that only kindly sweet words can be spoken by Christians, which shows you are not familiar with the Gospels. Jesus Christ himself had some choice stinging words for the deceitful charlatans of the day, who, like you and Vanderfool, insist we should kiss the moneychangers' heinies and submit to an evil regime of oppression. As they say, sweets for the sweet, and as for you, well, you Avengers get the crap sandwich you deserve. Enjoy!

Comment by Ana Panot
Entered on:

McElclap, you are the only faithful follower of Christ I know who talks like the Devil. That's what happens when one has no education -- no education, no class. Go get an education or just go back to the farm and plant tomatoes, your choice.

Comment by David McElroy
Entered on:

 If economic illiterates are not to comment, why are you flapping your jaws, Vanderfool? Does your mommy know you are playing with the computer? Charlatans need not apply, nor their aliases from Troll Central. This means all of you "Avengers" with a Ph.D. from Clown College. You have not posted one sentence of factual, verifiable knowledge to back up your arrogant boasts. Go home, boy, you bother me!

Comment by Joseph Vanderville
Entered on:

 This is not for economic illiterates to comment on.


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