Unrelated News

Why I call him "Ogabe", part 39261:

The Road to Harare - By Kevin D. Williamson - Exchequer - National Review Online: "With the Federal Reserve set to print $600 billion in order to buy Treasury securities, it is essentially funding the $1.2 trillion deficit for the next six months, according to Ed Yardeni, President of Yardeni Research. It’s even more if you count the reinvestment of proceeds from its mortgage-backed securities portfolio.

“You essentially have the world’s largest hedge fund down the street from the world’s largest prime brokerage,” said Yardeni, who has held positions at both the Federal Reserve and the U.S. Treasury. “I think that QE-2.0 is a very bad idea because it increases the odds of a trifecta of bubbles in stocks, bonds, and commodities.”

Bubbles are what you have when you forgo real productive investments. Here’s some totally, completely unrelated news:

Dollar dives:

The dollar fell against its higher- yielding peers after the Federal Reserve said it will buy an additional $600 billion of Treasuries to boost the U.S. economy."

And yes, Bush was barely any better. Ugghh.