Wednesday, October 27, 2010

Fed Gears Up for Stimulus - WSJ.com

Fed Gears Up for Stimulus - WSJ.com: "The Federal Reserve is close to embarking on another round of monetary stimulus next week, against the backdrop of a weak economy and low inflation—and despite doubts about the wisdom and efficacy of the policy among economists and some of the Fed's own decision makers."
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This reminds me of the super inflation a lot of people (including myself) were expecting to see this year. Well, it didn't happen even despite the massive amount money being poured into the economy. Why? My guess is because the economy is that bad. Also, because debt is being transferred and not eliminated, it really shows that the formula the Fed has been using to "stimulate" the economy is faulty, at least at the scale we are at.

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