More Thoughts on Quantitative Easing

I ran across this blog recently. I bring it to your attention for two reasons. First, we should all be paying attention to this because once fully understood many will find the government’s actions misguided (at best).

But also because if, like me, you’re working within either the U.S. housing or home finance industries, this impacts how quickly we’ll be able to recover.

According to this post in Dan Norcini’s blog:

The one thing that has helped to keep some of the population from becoming completely depressed has been the fact that they could look at their 401K programs and still see that those were in the plus column for the year. In other words, while the rest of the world was seemingly going to economic hell, at least they were making a bit of money on their retirement accounts.

As Norcini points out, it will be very challenging for the government to take this away and without QE, the markets are likely to revolt.

I’m not an “I told you so” guy, but anyone who has read my blog for any length of time knows that I believe this situation bears watching closely.

See my post on quantitative easing here.

And my recent podcast here, where I talk about consumers and their 401(k)s.