After searching “economy” on WordPress, I came across an interesting article called “QE3 Will Destroy the Economy, Use This Rally to Prepare for the Worst” (http://alternatenewsmedia2012.wordpress.com/2012/09/14/qe3-will-destroy-the-economy-use-this-rally-to-prepare-for-the-worst/). I found this article particularly relevant because in my corporate finance class today we were just discussing what QE3 is and what it means for the economy. It also relates to the case study about Enron we just read in class last week and the previous recessions. The author is not very optimistic about the state of the economy and says that “the reality is that we’re now facing a Crisis that will make 2008 look like a picnic”.
I think that the author does have a good point when he says that you cannot solve the debt problem with more debt. Although the Fed is trying to boost unemployment and stimulate the economy, by agreeing to buy $40 billion dollars of mortgage-backed securities per month indefinitely they are only encouraging the problem. There probably will be some kind of recession coming because it does seem like it is inevitable. This QE3 plan does seem to be a form of a bailout for banks which will continue these banks to keep doing what they’re doing and increasing inflation. The only question that I would have the author would be what he thinks is the solution for stimulating the economy because he only seems to criticize Obama without adding any input of his own.