There is no shortage of comments on the U.S. Federal Reserve's decision to journey into the unknown lands of quantitative easing – buying up $300-billion worth of longer-term Treasuries. Here are a few thoughts on that move:
James Hamilton, Econbrowser: “The Fed has declared pretty loud and clear that it is not going to allow deflation. So here's my personal investment advice: don't bet against the Fed.”
Yves Smith, Naked Capitalism: “The Fed first and foremost is trying to prop up asset prices, particularly housing, out of a view that their current level is the result of irrational pessimism.”
Dennis Gartman, The Gartman Letter: “We may have been forced to the sidelines in the gold market in recent days, but we shall be forced back to the long side of gold this morning, for the Fed has signaled that it shall err openly and consistently upon the side of inflation rather than deflation.”
