QE3 Isn't Working
The Federal Reserve has a dilemma, which means traders and investors have one, too. The primary goal of monetary policy is to stimulate economic activity, which requires lending and borrowing.
This is where things get tricky, because the Fed actions that can give lenders more confidence and promote lending can also make borrowers less motivated. This is called the paradox of thrift, which I discussed in October following the Fed's announcement of plans to purchase $40 billion worth of agency mortgage-backed securities per month....448 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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