so apparently we are going ahead with QE2...
markets have been talking about a second round of stimulus for quite a while, and yesterday's FED minutes show us that US markets is strongly dependable on some kind of external revigoration in order not to fall in recession again...
american markets has been recovering (slowly, although the comparable base is very week). What worries me about QE2 is that it looks a short sighted way to boost economy...my point is that I believe people in US should think of some other ways of boosting the economy which will be sustainable in the long run...QE2 could have the same effect as cash for clunkers...strong support when measures are in place and then back to normal when finished.
Everyone knows QE2 can't run forever and ever and it shouldn't be the responsible for boosting economies...quantitative easing should be used as a last resort when everything else has failed...did the FED and US Gov already try all other possibilities? What worries me is that these things can't happen frequently and having William B. 'English' as Federal Reserve secretary, the last thing we want is to have a recession spreading worldwide again.
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