Thursday Idiocy on Wednesday: Open Letter to Ben Bernanke: Hoisted from the Archives from 3 1/2 Years Ago...
Have any of the people who signed this amazing piece of WRONG explained why they did so, or taken any steps since to mark their beliefs to market in any way?
Open Letter to Ben Bernanke: "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.
We subscribe to your statement in the Washington Post on November 4 that “the Federal Reserve cannot solve all the economy’s problems on its own.” In this case, we think improvements in tax, spending and regulatory policies must take precedence in a national growth program, not further monetary stimulus.
We disagree with the view that inflation needs to be pushed higher, and worry that another round of asset purchases, with interest rates still near zero over a year into the recovery, will distort financial markets and greatly complicate future Fed efforts to normalize monetary policy.
The Fed’s purchase program has also met broad opposition from other central banks and we share their concerns that quantitative easing by the Fed is neither warranted nor helpful in addressing either U.S. or global economic problems.
Cliff Asness * Michael J. Boskin * Richard X. Bove * Charles W. Calomiris * Jim Chanos * John F. Cogan * Niall Ferguson * Nicole Gelinas * James Grant * Kevin A. Hassett * Roger Hertog The Hertog Foundation * Gregory Hess * Douglas Holtz-Eakin * Seth Klarman * William Kristol * David Malpass * Ronald I. McKinnon * Dan Senor * Amity Shlaes * Paul E. Singer * John B. Taylor * Peter J. Wallison * Geoffrey Wood