Back in November, when gold was priced $200 lower and the Federal Reserve was about to embark on a second round of asset purchases, Capital Hill dubbed the policy â??cash for spelunkers.â?
Now, as the Fed printing press winds down its current run and the economy finds itself back in a soft patch, the moniker and the prediction behind it seem on target:
Read Full Article »Like â??cash for clunkers,â? the housing tax credit and other attempts to provide short-term fuel, the Federal Reserveâ??s second round of quantitative easing can only buy a little time to fix what ails the economy.
Unfortunately, in the prior instances, the short-term fuel led to short-term complacency about the economic trajectory, leading policymakers to let down their guard. In the end, all that resulted was a letdown for the economy.
