Bernanke says..... on 28 April 2011
"The conclusion that the second round was ineffective could be validated only if someone thought this was a panacea (one that cures all)" he says. "Relative to what we expected, anticipated, the programme was SUCCESSFUL".
Bernanke makes clear that there will be no QE3.
So why not do more? "The trade off is less attractive"
MyView
"Trade off is less attractive" refer to political and inflation pressure. Now, I think the fund will begin between June to October. First time, the drug addict without the drug. Not sure what will happen, but it will be interesting to observe. If the dossage is strong enough, it will last a bit longer.
By the way, how is US housing and employment doing? Are they out of the woods? I really hope so, couple with gasoline at $4 per gallon, and high commodities prices, taxpayers may be hard hit. It could be worse, I guess if they stopped QE2.
I believe one cannot stop the tsunami, but can reduce the impact by having walls. Then again, the money spend on building the wall (misallocation of resources) has its side effects. No one can actually stop the tsunami. It may even build up a bigger one.
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