No, seriously. Because it’s always about bad things.
Hence “QE2,” shorthand for the second round of quantitative easing. By buying long-term bonds, Bernanke hopes to push down long-term interest rates. Low rates encourage borrowing, which increases spending — and prices.
The problem with QE2 isn’t that we’re printing too much money. It’s where that money will go. It should go to workers, who will spend it and stimulate the economy. But it won’t.
The Federal Reserve’s experimental effort to spur a recovery by purchasing vast quantities of federal debt has pumped up the stock market, reduced the cost of American exports and allowed companies to borrow money at lower interest rates.
But most Americans are not feeling the difference… Continue reading “I Hate Being Right”