Monday, March 26, 2012
Lets do the twist: Operation Twist err QE3?
The downside of this method is that it increases the money supply, and this leads to inflation. If people do not believe inflation is here, please check the prices of commodities and food. Eventually, interest rates will need to rise. Of course, this will have adverse consequences, but the correction must take place for all the egregious spending, bailouts, TARP, and the like.
Here are some links related to Operation Twist:
"Federal Reserve Launches Operation Twist"
"Operation Twisted Logic"
"The Fed's Long Shot"