Tuesday, November 12, 2013

Bush's Fault

Graph of the Day from ZH:


ZH posts an apology from a former Fed QE spender, Andrew Huszar, who explains QE's intentions vs. it's results.

Even by the Fed's sunniest calculations, aggressive QE over five years has generated only a few percentage points of U.S. growth. By contrast, experts outside the Fed, such as Mohammed El Erian at the Pimco investment firm, suggest that the Fed may have created and spent over $4 trillion for a total return of as little as 0.25% of GDP (i.e., a mere $40 billion bump in U.S. economic output). Both of those estimates indicate that QE isn't really working.

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