“The Lesson of ‘Half-Hearted’ QE”:
So what did QE achieve in Japan? “The program aided weaker Japanese banks and generally encouraged greater risk-tolerance in the Japanese financial system,” concluded a Federal Reserve study in 2006…just before the West caught up with Japan and embarked on its own credit-bust and depression.
“Quantitative easing may have [therefore] had the undesired impact of delaying structural reform,” said the Fed – a structural reform that zero-rate money printing in the UK and US hasn’t yet allowed either. Our zombie banks continue to avoid collapse, thanks to the huge volume of money thrown at their balance-sheets. Keeping them on life support, as the Japanese experience shows, will mean extending and expanding QE indefinitely.
Monkey do.
Happy happy joy joy
More like Monkey poo.
Oh please don’t say we’re going the Japanese way. That means gold and other commodities are must haves if you want to maintain purchasing power. Thanks for making me depressed today.
From what we’ve seen so far, it’s hard to argue that we’re not. I mean, c’mon, already promising low rates for the next three years? What the heck is that?