Banks and the Unfounded Hope of Easy Money

The main driver of the stock market rally off the late-August low seems to be the Fed’s relatively clear announcement of quantitative easing number two. Market participants seem to think that another round of extremely easy money will accomplish what the first round couldn’t. All that easy money is unfounded hope. The economy is no more receptive today to easy money than it was one or two years ago. According to the Fed, quantitative easing will reduce interest rates for longer-term maturities. Interest rates are already extremely low, so rates are not holding back the recovery. There must be other… . . . → Full Story: Banks and the Unfounded Hope of Easy Money