From David Einhorn: In August, the San Francisco Fed published an economic research paper that estimated that the $600 billion spent on QE2 added a meager...

Tom McKay

From David Einhorn: In August, the San Francisco Fed published an economic research paper that estimated that the $600 billion spent on QE2 added a meager 0.13% to real GDP growth in late 2010 (about $20 billion) and that the benefit fades after two years. Given that, what practical difference does it make whether the Fed buys a monthly $85 billion or $75 billion or no additional securities at all for that matter? We maintain that excessively easy monetary policy is actually thwarting the recovery. But even if there is some trivial short-term benefit to QE, policy makers should be focusing on the longerterm perils of QE that are likely far more important. (VIEW LINK)


Tom McKay

I'm the Managing Director and Co-Founder of Livewire. I'm passionate about collecting and curating the markets most informed insights every day so that our members can discover new investment ideas. If you would like to get in touch - please use...

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Jordan Eliseo

Beat me to it Tom - was just about to post those questions from David on here as well.

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Tom McKay

Seems like there's a big negative sentiment change over the past 48 hours. Is this just the start?

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