QE2 got a public rebuke from 23 economists, financial writers, and fund managers via an open letter to Ben Bernanke, chairman of the Federal Reserve.
Kevin Lamarque / Reuters / File
Today, an open letter to Fed Chair Ben Bernanke appeared via the Wall Street Journal questioning the wisdom of the Fed’s round two of quantitative easing. It’s signed by 23 economists, financial writers, fund managers and others, including, to name just a few…
* Richard X. Bove of Rochdale Securities
* Jim Chanos of Kynikos Associates
* Niall Ferguson of Harvard University
* James Grant of Grant’s Interest Rate Observer
* Seth Klarman of Baupost Group
* David Malpass of GroPac
* John B. Taylor of Stanford University
It’s a group that would not necessarily agree on wide range of issues, but that’s on the same page when it comes to QE2 and the destruction it could potentially unleash on the US economy and wider financial markets.
Here’s a part of the text, as published in WSJ:
“We believe the Federal Reserve’s large-scale asset purchase plan (so-called ‘quantitative easing’) should be reconsidered and discontinued. We do not believe such a plan is necessary or advisable under current circumstances. The planned asset purchases risk currency debasement and inflation, and we do not think they will achieve the Fed’s objective of promoting employment…