Comments on: Central bank stimulus is here to stay, but what if it fails? Sat, 03 Jan 2015 16:42:55 +0000 hourly 1 By: rikfre Mon, 18 Nov 2013 18:08:40 +0000 pssst….let me inform you on a little secret….it has failed..!

By: SamIAmNot Fri, 15 Nov 2013 16:00:21 +0000 Helicopter money is being carried out in the UK through:
a) transfers to the banks through low interest and QE
b) transfers to a random selection of people through the PPI mis-sale rebate system.
Something like 11 billion UK pounds has been distributed this way, in sums that most people aren’t saving but spending.
By sheet fluke they have implemented a suitable response (though not really big enough).

By: Samrch Fri, 15 Nov 2013 08:27:24 +0000 The banks needed to be nationalized or saved to have the business credit businesses and home buyers rely on. Two fiscal stimulus was used only monetary. You cannot push on a string as was said in economics classes, you cannot make people loan or borrow so monetary policy has limits as you said. But given the divide between the political parties it was the only game in town.

Also politician lie a lot. Since the sum real estate valuations exceeds many year’s GDP. The real estate bubble’s pop made possible by government encouraging bad mortgages was too big to stop.

No in government suggested ways to limit the number of mortgage loans when the price of the average hose exceeds some multiple of average salary the test of the existence of a bubble. Too many home owners are there to get rich on excess housing prices.

By: onlyif Fri, 15 Nov 2013 05:33:26 +0000 zerohedge arrived at this conclusion years ago… The Western economic model is cooked! I wish it weren’t so, but sadly it is, the collective memory is short and we’re destined to repeat the same mistakes of the past.

Why people persist in listening to those doyens of finance and economics… when they are repeatedly wrong in their forecasts makes no sense.

How many times have you heard that a recovery is just over the horizon?

By: JLWest Fri, 15 Nov 2013 04:04:48 +0000 If it fails the politicians will figure out 3 critical problems dam fast.

1. How to save themselves at the expense of everyone else.
2. Who to blame that can’t be held accountable.
3. How to stay in office.

By: Mott Fri, 15 Nov 2013 03:59:14 +0000 Good luck continuing with the insanity.

Short of VAT on imports to reverse the lost jobs, any business growth is a pipe dream other than – one business stealing from another in a growth stagnated environment going forward.

By: Greenspan2 Fri, 15 Nov 2013 02:16:54 +0000 It’s time for alternative or supplemental currencies that can be used within communities or distressed areas for jump starting local businesses. The current system is not adequate for reaching those most in need of stimulus.

By: Newsrocket Fri, 15 Nov 2013 01:09:15 +0000 Cyclical greed rules. Time to push it back and let public banks have a shot at it. it’s sure working in China. And in North Dakota…oh my!

By: Newsrocket Fri, 15 Nov 2013 01:05:58 +0000 The U.S. needs new roads, highways, sewer and water systems, investment in medical and general research, guaranteed college education and seed money for start up companies. Money for research and production of green energy, especially injection geothermal power and to provide electric cars for all who want them. All the money going to the top is great for those who have the money to enforce electoral stupidity and the further rotting away of the middle class. Trickle down is not even trickle on anymore. People want to work. It’s the private banking system that has wrung out every drop of monetary wealth from the upper middle class on down. The writing on the wall would be visible save for the wealthy repossessing it last week in foreclosure.

By: reality-again Fri, 15 Nov 2013 00:26:41 +0000 Part of the reason why the Fed’s QE has turned out to be a failure of epic proportions is the inconvenient fact that if you ask Americans what they think of it, most would say it is just printing money in order to benefit the rich who invested in stocks, and for further enriching Wall Street financial firms.

Average Americans don’t see ‘growth’ anywhere around them, except on the news about the DJ and S&P breaking new records.
Few Americans believe QE is achieving anything positive these days, and most don’t see anything good coming out of it. Many see the dangers in it, while few believe pundits like Krugman who seem to promote the irrational notion that central banks can and should print money in unlimited quantities, pretty much ad aeternam.

Since printing money can be in some ways similar to taxation, and since the American people doesn’t have much to say about what the Fed do, QE is de facto a form of taxation without representation.