http://globaleconomicanalysis.blogspot.com/2011/08/bill-gross-says-fed-approaching-dead.html
No Solution?
There is a solution, just not a politically viable one. It's called debt deflation. That is the economy's way of purging the excesses of a housing bubble and debt orgy.
Instead, the Fed and the ECB protected bondholders at the expense of taxpayers even though the unemployment rate is sky high.
The Fed's action was supposed to get credit flowing again and create jobs. Instead, Fed policy created jobs in China while bailing out US bankers and wealthy bondholders, many of whom arguably belong in prison or stripped of their financial assets.
In the end, Greece defaulted anyway at huge extra cost to European taxpayers. In the US, unemployment rate is 9.2% not counting millions of people who involuntarily dropped out of the labor force.
No Solution?
There is a solution, just not a politically viable one. It's called debt deflation. That is the economy's way of purging the excesses of a housing bubble and debt orgy.
Instead, the Fed and the ECB protected bondholders at the expense of taxpayers even though the unemployment rate is sky high.
The Fed's action was supposed to get credit flowing again and create jobs. Instead, Fed policy created jobs in China while bailing out US bankers and wealthy bondholders, many of whom arguably belong in prison or stripped of their financial assets.
In the end, Greece defaulted anyway at huge extra cost to European taxpayers. In the US, unemployment rate is 9.2% not counting millions of people who involuntarily dropped out of the labor force.
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