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Efforts to Revive the Economy Lead to Worries of a Bubble


By Patrick   Follow   Thu, 18 Apr 2013, 3:18pm PDT   259 views   3 comments
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http://dealbook.nytimes.com/2013/04/17/efforts-to-revive-the-economy-lead-to-worries-of-a-bubble/?ref=todayspaper

Are we moving from the crash to the bubble, dispensing with that pesky economic recovery thing altogether?

The Federal Reserve is well into its third round of “quantitative easing,” in which it buys longer-term assets to bring down long-term lending rates. We are about five and a half years into the Fed’s extraordinary monetary policies (its out-of-the-box lending programs began before the crash, in late 2007).

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Entitlemented   Thu, 18 Apr 2013, 5:02pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 1

Barney Frank and Maxine Waters say "there is no bubble from QE1-4". Your concerns are an attempt to keep people out of their rights for home ownership.

How dare you suggest that this wont work...........

fedwatcher   Thu, 25 Apr 2013, 4:35pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 2

The only thing the Fed knows how to do well is to blow another bubble. They fail mostly on trying to manage the downside.

adarmiento   Thu, 25 Apr 2013, 4:45pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 3

Instructions on US Economy ballon:

"In case of crash, frantically inflate."

step 1: inflate
step 2: prolong bubble
step 3 : watch burst
step 4: go to step 1

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