CNBC discussion this morning with Jim Grant, "Grant's Interest Rate Observer" :
Joe - Jim, i know you think this is long overdue. a move to taper, the effectiveness of QE stopped a long time ago and there are serious problems that could come up from extending this, correct?
Grant - You see it all over the economy. You see it in health care, of course, on Wall Street. Ben Bernanke addressing the students of George Washington university. He seemed not to have the self-awareness to recognize what the fed is doing is an exercise in price control. This is stocks.gov, bonds.gov. you know, you hear these medications advertised on tv and they say, you know, for heart condition. Then they tell you what they'll do for you. In the end, they say, well, it could also induce hair loss, nausea, impotence, weight loss, weight gain. Those are good things. Cancer. Then you think, heart attack, what's so bad about that? Right. The unintended consequences of this exercise are much more interesting than the very meager results to date, and the unintended consequences will roll out over the years. |
