While the prospect of more Quantitative Easing is encouraging to some investors due to the conviction that this will continue a policy of historically low interest rates, there are many challenges that QEII will not address.
1. High Unemployment, 2. Uncertainty caused by new regulations, government policies, 3. Increased Corporate Taxes dampening business investment, to name a few.
Maybe a policy of “do no harm”, which in this case would mean no more QE, at least for the time being, will be the best path for the economy.
