unclej0

Quant Easing: Central Banks Unleash the 'Nuclear' Option

The central banks and the fed would like to smooth out the cycles of bubble-and-bust but they don't yet have the knack. When they do, it would be possible to automate and control the management of interest rates, money supply, tax rates and public spending better than the politicians. The trouble is that macroeconomic models are not scientifically validated and experiments in national economics are rare.

So here we are, with pundits arguing about the consequences of present policy - some predicting serious deflation and some predicting serious inflation or both sequentially. I would not advise betting the ranch on any sure-fire market timing system. If that's what you want, go to a good casino.

Of course, doing nothing is also an uncool idea. If that's what you want, curl up in fetal position.

Even the investment bankers, who could do very well by playing with other peoples money have managed to screw up. It seems that the invisible hand of the fair market can't compete with the crooked ways of the real market, at least, not without leaving pools of blood in the street.

The bottom line: we live in interesting times.