More Bah! Humbug! from Goldmanâs chief economist Jan Hatzius. Although last weekâs economic data makes a big âQE2″ announcement from the Fed unlikely at the September 21st FOMC meeting, Hatzuis still believes more unconventional monetary easing is on its way, via a $1,ooobn purchase of Treasuries â because we are still in a soft patch. Hatzius writes in his latest âUS Viewsâ note: (Emphasis ours). Later this year or early next, however, we do expect a return to unconventional monetary easing. This is because we strongly disagree with the notion that the recent slowdown in activity is a temporary âsoft patchâ in an otherwise fairly decent recovery, which seems to underlie the Fedâs forecast of a reacceleration in 2011 after a modestly slower period in 2010H2. On the contrary, we believe that the stronger growth of late 2009/early 2010 was a temporary âfirm patchâ in an otherwise extremely anemic recovery, and there is a sizable (25%-30%) risk of a renewed recession. As this becomes clear, Fed officials are likely to act. The most likely policy shift involves purchases of US Treasuries, although changes in the forward-looking language are also a possibility. Ultimately, any new purchases are likely to total at least $1 trillion, but todayâs NYT interview with outgoing Vice Chairman Kohn suggests that Fed officials may only announce a smaller amount upfront and then adjust their plans in response to new information (see Retiring Fed Official Considers More Bank Action). The advantage of such a policy is that it may be an easier âsellâ to skeptical officials, although the risk is that the markets will view it as half-hearted. ... http://ftalphaville.ft.com/blog/201...-a-further-1-trillion-of-qe/?updatedcontent=1
It is better to vertically breakup big corporations into smaller entities to solve unemployment crisis and promote competition.
qe is so yesterday. Irish Nationwide Now Engaged In "Micro-Quantitative Easing" As It Issues Bonds To Itself