Harvard economics professor Martin Feldstein goes after the Federal Reserve and its new asset-buying strategy in an op-ed for the Financial Times.
“The Federal Reserve has now embarked on a very dangerous strategy, buying $40bn of mortgage-backed securities each month for an indefinite number of years,” he writes.
Like many critics of the Fed, Feldstein argues that this is the path to inflation and bubbles.
Furthermore, he argues that the strategy generally misses the underlying conditions holding back growth:
Last weeks comments by Mario Draghi in which he claimed that he would do ‘whatever it takes’ to save the Euro has markets expecting action.
One possible form of that action is an expanded purchase program of troubled Italian and Spanish bonds. It could be combined with a banking license for the European Stability Mechanism, which would greatly expand that fund’s ability to buy sovereign debt.
Harvard Economics Professor Martin Feldstein argues at Project Syndicate that such [...]
Harvard economics professor Martin Feldstein spoke to Bloomberg Television’s Sara Eisen this morning, saying that the real danger to the U.S. economy is that “this is a bubble in the stock market created by low long-term interest rates that the Fed has engineered.”
Feldstein on the U.S. economy:
“We are not doing very well. The economy is just coming along at a snail’s pace. The first quarter numbers that we just got [...]
Legalizing drugs in the U.S. could save the federal government $88 billion, according to Harvard economics lecturer Jeffrey A. Miron.
The findings, published by the Cato Institute, a libertarian think tank, show that legalizing drugs would save the federal government an estimated $41.3 billion in drug prohibition enforcement expenses.
Legalizing drugs—including marijuana, heroin, cocaine, and synthetic drugs—would also generate tax revenues of about $46.7 billion, Miron argued in the paper, which he [...]
I noticed that the BDI had another very positive day yesterday (using screwball Federal Reserve Princeton/Harvard economic growth/recovery algorhythms)…it dropped another ( – 3.941%)…taking it down (up) from 11,700 in June 2009 to 1,292 as of yesterday at the close.
I tend to prefer the Chinese the way they use the old system…”up is up” and “down is down”.
Not bad. It would appear that global commerce [...]