Do you think it will work? I would say there's a good chance; it has already had a favorable impact on the markets. If he did not do QE2 it would be a disaster. With the election, I think this is probably the most relevant 24-hour news period this year. What could limit QE2's effectiveness? First of all, people don't have the credit scores (to get mortgages). And it's not that easy to refinance. Mortgages may go to 3½ percent or 4 percent, but that's just for those with good credit.
There's so much uncertainty about the economy. No one will buy houses or hire people or build plants. Obama is hoping Bernanke will get the unemployment rate down. How does Fed leadership in this crisis compare to previous eras? Greenspan would have the minutes written before the meeting. Bernanke, as a professor, is more democratic. The Fed has become a committee. But this Fed is lacking credibility because of its dissension. It has failed to provide a consistent message. Greenspan would have never stopped QE1.
发表于 2010-11-3 15:26
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Do you think it will work?
I would say there's a good chance; it has already had a favorable impact on the markets. If he did not do QE2 it would be a disaster. With the election, I think this is probably the most relevant 24-hour news period this year.