NP but The Confidence Man: Bernanke

[alice wellintown]

Gramm and Taylor: The Hidden Costs of Monetary Easing
Inflation is not the only danger posed by the central bank's
ballooning balance sheet.
Inflation is not, however, the only cost of these unconventional
monetary interventions. As investors try to predict the timing and
effect of Fed policy on financial markets and the economy, monetary
policy adds to the climate of economic uncertainty and stasis already
caused by current fiscal policy. There will be even greater costs when
the economy begins to grow and the Fed, to prevent inflation, has to
reverse course and sell bonds and securities to the public.

see WSJ Opinion (a decent critique and warning). But Ben will prevail.

On 9/13/12, alice wellintown <alicewellintown at gmail.com> wrote:
> Ben is a hero; he needed to act and he did. He did not wait for the
> poltical parade to roll down the street and pick a winner; he will not
> be hushed or threatened, pushed off a fiscal cliff. One could argue
> that he could have dione more sooner, but these arguments (i.e.,
> Krugman & Co.) ignore the risks. The risks are quite significant. And
> I'm not talking about inflation. We have still a long road ahead, full
> of potholes, or, if you prefer the worn out and trite headwinds
> everyone is talking about, headwinds ahead, but we now have significan
> risks that the Fed will have to handle down the raod. But we are on
> the road to recovery. The come back kid is back again. Buy risk assets
> or suffer.
>
>
>
>
> On 9/13/12, Markekohut <markekohut at yahoo.com> wrote:
>> "Confidence" is what the FED can provide, he said today.  Melville knows
>> all
>> the Repub wiles
>> In the characters in that novel, including, of course, Mitt saying he
>> will
>> fire Big Ben if he wins.
>> All the ways of Nay-saying, of sabotaging the "trust" in the social
>> contract.
>>
>> Sent from my iPad
>