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Fed policy has pumped up the stock market and allowed companies to borrow money at low rates,...

Fed policy has pumped up the stock market and allowed companies to borrow money at low rates, but few others enjoy benefits, so many economists view QE2 as a disappointment. But Ryan Avent thinks the program has been mostly a success: "Growth in the first quarter is disappointing, it’s true. Without QE2 it would be more disappointing still, and very probably negative."
Comments (10)
  • bankingqueen
    , contributor
    Comments (135) | Send Message
     
    At least we would be off the crack, and long term better for it.
    26 Apr 2011, 05:49 PM Reply Like
  • realornot
    , contributor
    Comments (1281) | Send Message
     
    No free lunch. QE2 is the same. Tax payers are the ones left paying for the bills. At the end, banks will restrict credit to secure their bottom lines. Companies will continue acquire other companies and pay out dividends. Hiring will be for temporaries or independent contractors.
    We are going right back where we started back in 2008.
    Ben is doing a case study paper for his students in the future after he leaves FED. "The lasting effect of QE2"
    26 Apr 2011, 05:51 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Not sure how one considers QE2 a success since housing demand continues to fall, interest rates are rising, and the dollar is falling.
    26 Apr 2011, 07:19 PM Reply Like
  • caith01
    , contributor
    Comment (1) | Send Message
     
    The biggest losers are American citizens with saving accounts. The biggest winners are the banks which they can get the money from their father(FED) by paying near zero interest rate(free money).
    26 Apr 2011, 08:04 PM Reply Like
  • Sled Dog
    , contributor
    Comments (58) | Send Message
     
    QE1 and QE2 kicked the can down the road resulting in much collateral damage. Inflation is beginning to soar and the Fed has painted itself into a corner. The fundamentals of this economy are completely dysfunctional when the authorities just throw money at every economic dislocation. It is unsustainable. What happens when the Fed is out of QE bullets and inflation really takes off? It could happen sooner than anybody thinks......and then it is too late!
    26 Apr 2011, 08:53 PM Reply Like
  • tigersam
    , contributor
    Comments (1711) | Send Message
     
    QE2 was successful. It brought confidence in lot of people.
    26 Apr 2011, 09:16 PM Reply Like
  • Harry Tuttle
    , contributor
    Comments (2221) | Send Message
     
    Really? I say we try without the Fed and see what happens.

     

    I am tired of the financial engineers' view of the world. In addition, I think it is wrong.
    26 Apr 2011, 09:17 PM Reply Like
  • tigersam
    , contributor
    Comments (1711) | Send Message
     
    Harry Tuttle:
    I am not sure if you were replying to my comments. If you do here is the answer.

     

    Really yes. I am not sure if there is a medicine for your tiredness. May be few extra hours of sleep will help.

     

    If not then sorry for this comment.
    26 Apr 2011, 09:26 PM Reply Like
  • Harry Tuttle
    , contributor
    Comments (2221) | Send Message
     
    tiger:

     

    I always try to reply. My true tiredness is with those who are gullible enough to believe this stuff will work "one more time." As far as I am concerned we are just blowing the same bubble we started, at least, in 1998 (LTCM). That will not be cured by sleep.

     

    Thanks for the comment (mine is the thumbs up).
    27 Apr 2011, 07:50 AM Reply Like
  • Philip Fisher
    , contributor
    Comments (139) | Send Message
     
    The success of QE2 can only be judged by financial historians, long after QE2 is done.

     

    Time will tell.
    26 Apr 2011, 10:02 PM Reply Like
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