Detlev Schlichter’s latest posting – Stimulus, to infinity and beyond – is up.
There was a beautiful symmetry to last week’s policy announcement by the Fed. Precisely a week after the ECB had pledged its commitment to unlimited purchases of Euro Zone government bonds, the Fed declared that its new round of debt monetization – ‘quantitative easing’ or QE3 – would be open-ended.
Unlimited, open-ended. The concept of stimulus has certainly evolved since the crisis started.
This will end badly.
Nothing to add to that myself. Other than: do what I am about to do, which is to read the whole thing.