- Can you feel it? The world is in a different place this morning.
Yes, the sun is still shining, birds still chirp and the hype over Apple’s iPad is still building beyond an already insufferable level. Your world may appear normal. But there’s a qualitative difference to the economy today, brought on by the absence of “quantitative easing,” or QE — our favorite acronym of 2010.
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Solving Debt and Moral Hazard With More Debt and Bailouts
The Fed’s response has been adolescent in the sense that it has permitted major damage by allowing the credit boom to happen. Right under its nose, the broad money supply (M3) doubled in the last eight years, from $7 trillion to $14 trillion, but it is trying to fool the market into thinking this statistic is irrelevant because it was vigilant and never allowed inflation to surface.
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