Thursday, October 30, 2014

Ron Paul: Without QE3, a Deeply Flawed Financial System Remains

QE is dead. Long live QE. Everybody knew that the Fed would announce quantitative easing was ending. Nevertheless, the stock market dropped 100 points and quickly recovered, down only 31 points for the day.

The Fed did plenty to alert the stock market players that though they are at least for now discontinuing buying long-term bonds, don’t fret. The Fed has no interest in raising interest rates. They may be suspending the purchase of long bonds, but to keep interest rates from rising they will have to buy something else.