WC Varones

Don't lend your hand to raise no flag atop no ship of fools

Loose Janets sink planets

Even the dummies at the IMF are catching on to the idea that you can't solve all the world's problems by printing infinite amounts of money.

NYT:
As economists and politicians heap pressure on global central banks to continue, and even escalate, their unusually loose monetary policies in order to spur global demand, the fear that these measures could provoke another market convulsion is spreading.

“A major lesson of the last crisis is that accommodative monetary policy contributed to financial excesses,” said Lucas Papademos, a former vice president of the European Central Bank. “We are pursuing a similar policy for good reason. But there are limits — if you do this for too long, risks in the financial markets will materialize.”

[...]

“What we see is extraordinary risk-taking in the financial markets while in the real economy risk-taking has taken a holiday,” said Claudio Borio, a senior economist at the Bank for International Settlements, a clearinghouse for global central banks.

2 comments:

Independent Accountant said...

WCV:

Ah, the Keynesian multiplier. What is it? The secularist version of the story of the loaves and the fishes. Free food for all.

IA

JohnJEnright said...

Nice rhyme!!

Related Posts Plugin for WordPress, Blogger...

Contact Us

e-mail: wcvarones *at* yahoo *dot* com

Blog Archive