Everywhere I turn is another article about Quantitative Easing Part 2. Will they or won’t they? My question last week was will it make any difference? After I sent my letter out, I came across this missive from the always fascinating Ed Yardeni. I like to read Ed because he is not afraid to take an out of consensus call. He is his own man, something of a rarity in the world of economists.
He highlights a report from the Fed on the problem with the money multiplier. It has gone away. (Really? You think?) If you took Econ 101 this was a basic staple.
He writes: “Fed officials are clueless about how quantitative easing is supposed to impact the economy. They aren’t even sure if it has any effect on the economy. The Fed study cited here confirms this known unknown.”
I include the rest of his letter to let you know what type of material he does daily, as some of you might want to take a closer look at his service. ( www.yardeni.com). I really liked his take on housing. This is an excellent choice for Outside the Box.
I am starting to adjust from the travel. Have a great week!
Your ready for some NBA basketball to start analyst,