The Fed is at it again, purchasing almost 600 billion dollars in debt to push the long term rates lower. I have no idea what the Fed is thinking but enough of this stimulus. It has been going for too long and the Fed and the government is getting impatient with the slow pace of job creation and economic growth. By throwing more money to the same problem, would they be able to create the conditions for faster growth and job creation. Here I will differ (as did many countries and central banks around the world).
The public has lost appetite regarding more stimuli since the last one did not achieve the desired result of reducing unemployment (although it averted the banking crisis-which is still being debated). I now believe that the Fed should leave the markets alone and let the free market do its work since we are in awash in so much money that we don’t need more help. Let the government devise sound economic policies and let the free market take care of the rest, since the government has already put too much money into the system, the job creation and economic growth will take some time since this economic mess was not created overnight so the solution or the resolution of this mess will not happen for some few years (baring any more unexpected events).
Friday, November 19, 2010
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