Monday, October 22, 2012
It has been a little over a month since the Fed announced QE3; investors are already looking for an expansion to the program.  It’s becoming clear that monetary easing has lost much of its effectiveness.  Could we soon witness the popping of the moral hazard bubble, as investors realize that the Fed doesn’t always win?   Caution is warranted.  The parallels between the U.S. and Japan are uncanny.  

It has been a little over a month since the Fed announced QE3; investors are already looking for an expansion to the program.  It’s becoming clear that monetary easing has lost much of its effectiveness.  Could we soon witness the popping of the moral hazard bubble, as investors realize that the Fed doesn’t always win?  

Caution is warranted.  The parallels between the U.S. and Japan are uncanny.  

Posted at 3:30 PM 6 notes Tags: fed qe doesn't work funny money

Notes

  1. rationalcapitalistspeculator posted this