My good friend Mario Yngerto brought "Why QE3 will fail" to my attention today. It is a long and academic review of QE3 and its conclusion is that it will fail. I agree with that!
You don't have to be an economist to understand that our federal government is spending too much money, i.e. we've run federal deficits of 10% of GDP for 3-4 years. In other words, our problem is too much debt not a lack of stimulus!
Also, the first two QE's did not create jobs or stimulate the economy? Why is QE3 expected to do what the first two did not do?
Last, but not least, we have a confidence problem. You can not fix "confidence" problems with traditional monetary policy. You need to change the leadership in order to regain confidence.
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Tags: QE3 is not a big cruise ship (like QE2) but rather a big spending program that won't work To share or post to your site, click on "Post Link". Please mention / link to the My View by Silvio Canto, Jr. Thanks!
