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.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
