...QE3 May Do More Harm Than Good?
Possibly, I suppose, because QE1 and especially QE2 did more harm than good. In fact, I think a case could be made that the death, destruction, and unrest in the Middle East is pretty much a function of QE2 driving up the prices of staple foods like corn and wheat.
When Bernie Madoff began his ponzi scheme of using new investor money to pay current investors, he was only copying what the Federal government does. Why is he in jail and Greenspan, Bernanke, various Presidents and former Treasury Secretaries are walking around free and rich? Even after it became obvious what Madoff had done, Larry King, one of the stooges who invested with Madoff, said, "He never had a down month." Some people just will not get it even when you make it plain to them.