No, I am pro reform, QE is SSDD. They need to reform Wall
Street and the Fed. Stable money and balanced budget would
be best, but we are way off the rocker on that one.
Nationalizing Fed dealers and canning the Fed and derivative
contracts would be a good start, but it's difficult to
implement. Due to the Fed/Treasury counterparty
bailout decisions in 2008 + quantitative easing policy,
Fed money center banks are now awash with money and
impossible to shut down. In other words, the moment
to act has passed. They could have let AIG/Fannie blow, then
nationalize the counterparties. Right now the Fed is
channeling printed money directly into the non-productive
sector of the economy, and the result of that will be
a disaster. They should channel money into productive sector.
So: What I am saying, it's too late! We'll have to wait
until the NEXT blowup, which is coming, because the underlying
imbalances are amplified, not cured. Moral hazard
exponentiated. This is BAD, as ggersh says, and we are
pretty much scroomed. Sometimes the market economy finds a way
to cure itself despite dumb government decisions. We have to
watch all developments. Maybe we get lucky, but I don't
hold much hope for that -g- |
