A Cure Worse Than The Disease

Monday, May 10, 2010, 8:13 AM
Enroll NowFor enrolled members only. Enroll or Sign in to read the full article.

Recently I've argued that Deflation is Not on the Menu by pointing out that the immediate and devastating political and economic pain associated with deflation will spur decision-makers to do anything and everything within their power to stoke inflation.

And then, when discussing the Greek situation, I noted that there are only three possible actions for EU leadership to take: 

  1. Let Greece fail
  2. Let French and German banks fail
  3. Fire up the QE particle accelerator, buy up all those dodgy Greek (and Spanish and Portuguese and...) bonds, and stuff them onto the ECB balance sheet like the Fed did with MBS paper

Providing no surprise to me at all, they chose option #3 this weekend and fired up the magic money machine to the tune of nearly a cool trillion:


Enroll Now
Or Sign In with your enrolled account.
Endorsed Financial Adviser Endorsed Financial Adviser

Looking for a financial adviser who sees the world through a similar lens as we do? Free consultation available.

Learn More »
Read Our New Book "Prosper!"Read Our New Book

Prosper! is a "how to" guide for living well no matter what the future brings.

Learn More »


Related content

57 Comments on A Cure Worse Than The Disease

Enroll now or Sign In to read all member comments.