Farewell QE, you have been a magnificent success:
The moral contours of QE depend on your angle of vision. But would you rather be surrounded by mass unemployment?
–Ambrose Evans-Pritchard, the Telegraph, Dec. 18.
Outgoing Federal Reserve Chairman Ben Bernanke managed to thread the needle yesterday, announcing a modest monthly taper in quantitative easing of “only” $10 billion dollars, while leaving the remaining $75 billion in monthly bond purchases untouched. He also suggested the Fed will keep rates accommodative — read very low — for even longer than previously promised.
Rather than crash (as was so widely predicted), the markets took off: The Dow industrials up 1.84 percent (292.71 points), while the S&P 500 gained 1.66 percent.
While we do live in interesting, even fascinating times, these many disparities raise this interesting question: Why do so many people hate QE?
Here are the six best answers to that question I can muster . . .