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Imagine theres no.....................QE1 & QE2


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Without QE1 and TARP we would have had economic consequences which would have made the world look a lot like the great depression. It was the failure of the banks and the resultant destruction of the money supply which caused the great depression the crash of 29 was not the cause of the collapse of economic activity it was what happened next. Helicopter Ben did what he said you have to do to stave of an extended depression. I believe without the policy responses we would have seen many more bank failures much higher unemployment much lower overall economic activity and the decline in security prices would have been much greater. Some of us may have in fact been wiped out even Mr Buffett's  fortress company was vulnerable.

  I am not sure that QE2 was required and if we are going to have QE3...N then I think the hyper inflation which could result will make the future  as untennable as if we did nothing  and let it all come crashing down.

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