Jul 6, 2011

Kevin Duffy on the legacy of QE2

Seduce savers into risk assets. Replace savings with speculation. Help foment bubbles in everything from silver and cotton to Chinese dot-coms and social networking IPOs. Add another round of moral hazard. Add price inflation to the woes of the middle class. Have zero effect on housing and employment. Bring unfounded confidence back to the corporate sector (witness massive stock buybacks). Further engorge the public (parasitic) sector at the expense of the private (productive) sector. Enable the public debt to go parabolic, putting it on credit watch and raising longer-term rates. Set an example to the rest of the world that they can paper over their problems, putting off the day of reckoning another day.

… All in all a raging success!

~ Kevin Duffy, July 5, 2011

No comments: