September 13, 2012
We predicted last week that Bernanke would launch QE3 this week.
Today, the Fed announced that it will buy $40 billion dollars of mortgage-backed securities per month … indefinitely.
This is just another bailout for the big banks. (If the government had instead given money directly to the consumer, we would be out of this economic slump by now).
Bernanke claims that the main justification for QE3 is to boost employment. This is slightly ironic, since Bernanke’s policies are largely responsible for creating high unemployment in the first place.
The real justification is to try to artificially prop up asset prices. But that approach has been proven to be an absolute failure.
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