Quantitative Easing Reaction Roundup

John Jansen:  ICBM Ben

James Hamilton was impressed.

Scott Sumner was somewhat less impressed.

Ditto David Merkel.

Felix Salmon wonders if we’re bailing out China (*).

Tyler Cowen’s take is quick but interesting.

Calculated Risk doubts the Fed’s actions will (ahem) yield 4% mortgages.

Yves Smith is doubtful in general.

Simon Johnson is worried about inflation.

StatsGuy isn’t so worried, thanks to deleveraging.

Aside:  Tim Duy was early in expressing concerns about the Fed’s execution of quantitative easing via mass MBS purchases.  I share his concern; this crisis is partly due to overallocation of resources into housing, and now we propose to fix it by repeating that same mistake?  This is bread & circuses for homeowners, pure & simple.  Shucks & other comments.

(*) UPDATE:  Brad Setser thinks the answer is, “Yes, sort of, but not quite.”

Also, Paul Krugman comments.


One Response to “Quantitative Easing Reaction Roundup”

  1. Well, we all need food and entertainment…since we’re relying on the government to fix everything else, why not these most basic of needs, as well?

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