I thought I should comment on the Bernanke Quantitative Easing. As I am a macro economist I thought you might like to know what other macro economists think of his decision. First of all Quantitative Easing is not the last option he could do other things, quite a lot of them. I am writing a paper about this and will post it if it is published. The thing I don't understand is why he thinks it will work. The market is constrained there is no reason why it should work. The long term demand curve is likely to be in decline and the ability to enable employment is not there. To help the situation he would have to introduce legislative changes to create employment opportunities. Unemployment is actually opportunity especially if it is skilled. The key to reducing it is enabling the market to be cost effective enough to make employment attractive to employers. Marketing and sales is only one aspect to employment. The concept that you need to entice demand to need employees is true however there is another dimension. The cost to the employer of employees. There may be businesses that want more staff but cannot afford them this is something I found working previously in insolvency that the demand was there but legislative and cost limitations prevent growth both of employment and enabling service. By reducing the legislative requirements of employers and the government enforced cost of staff the labour market will become more attractive. This works for both internal and external markets. If you are an investor or trying to borrow money from someone justification of return is required if the running or operating costs are low you can do this more easily and capital investment will be easier to gain. The concept of demand has been one sided purely consumer consumption or government procurement. They have neglected capital investment and by that I mean the investment in new business creates demand for production in capital goods, tools, factories and workers. This is the key to recovery the ability enable the means of production. By cutting the costs of starting new businesses the employment market will pick up. Purely putting money into failing businesses will do nothing but provide false hope. In my opinion Bernanke makes a foul of himself he is not acknowledging an important aspect of aggregate demand and the full tools that make it possible to recover. Has he never heard of capital investment (not stimulus, this is different). Any thoughts.