Biotech Values

[zipjet]

OT - QE

Lawrence Meyer was on CNBC this morning with James Bullard, worth a listen if you did not hear it:

http://www.cnbc.com/id/15840232?video=1610329124&play=1

I think Lawrence Meyer is the guy to listen to on this despite the fact he is no longer on the Fed. He quantified the coming QE2 at $1.5T spent at about $100B monthly.

I continue to be fascinated with the impact of credit delevering. When we first heard that was "planned" I questioned what would cause and whether we could stand the pain it caused or would avoid the effects.

It is now clear we could not live with the effects and the picture of how government would respond is progressing.

Deleveraging course:

- Demanding that the private sector reduce debt also reduced demand;
- Reduced private demand was intolerable and replaced with Federal demand – increasing public debt;
- Being dissatisfied economic activity resulted in FFR at the zero bound, and QE to boost private demand and debt.

IF I have this right, then we are now back to trying to boost private demand and credit via QE.

Today government laid off more employees (77,000 excluding census workers) than private industry added (64,000).*


ij




* No doubt this is all "W's" fault.