From the Fed all the down to these bloggers, they have all fallen for the Keynesian model of economics which has proven itself to be a total disaster. Sadly it takes time for the worst effects of this just throw more money at everything to show up. Well that time has been here for the last decade. These policies may be great for Wall Street and the fiscally irresponsible government, but they do nothing for the man on te street. Eventually this house of cards that they have built over the last 100 years will crash very hard.
The FOMC delivered everything I expected - and more. This was a very strong move and I suspect many analysts are underestimating the potential positive impact on the economy. However, as Fed Chairman said, monetary policy is "not a panacea". I do think this will help, but this will not solve the unemployment problem. Here are a few key points: • Forward guidance is a critical part of Fed policy (see Michael Woodford's paper presented at Jackson Hole). The FOMC didn't go as far as targeting nominal GDP, but they took two key steps today: 1) they extended the forward guidance until mid-2015, and 2) the FOMC made it ... (full story)