Louis Woodhill, Forbes
People can stop wondering if QE3, Fed Chairman Ben Bernanke’s latest effort to “do more”, will work. It has already failed.The futility of QE3 was made clear by the financial markets’ reaction to the Fed’s announcement. The Real Dow, which is the Dow Jones Industrial Average divided by the price of gold, actually fell by 0.65% on September 13, the day that QE3 was announced. While the Dow gained 1.6% on the day, gold went up by 2.2%. In real terms, QE3 made the economic outlook worse, not better.
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