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.