Today I was planning on a post about Quantitative Easing (QE) today, because it seemed to me that it would never work. However, today, Randy Wray beat me to it with another great post, this time at ND20, reviewing the whole situation in detail, placing it in political context, and explaining why it’s very unlikely that it will allow the economy to recover much more than it has already. Here are some key quotes from Randy’s piece.
|By: letsgetitdone Monday October 18, 2010 2:01 pm|
The latest mortgage foreclosure mess is just another financial crisis.
It’s not a real economic crisis- no houses have been actually destroyed- no fire, hurricane, or earthquake damage, etc.
So the responses aren’t about bulldozers, hammers, concrete pouring, etc.
The question is whether this financial discovery/event spills over into the real economy.