The Ripple Effect of Unintended Consequences or How Ben Bernanke Plays in Cairo
Posted by Larry Doyle on January 31st, 2011 6:59 AM |
I believe we remain in the relative early stages of significant structural and fundamental changes in our global economy. As political leaders – both domestically and globally – work to address a variety of issues, I see the following two themes continuing to play out:
1. In an attempt to support our economy, Washington has done and seemingly will continue to do everything possible to pull demand forward, delay the recognition of financial losses, and simultaneously redistribute losses which emanated from our banking system. We could debate the merits and impacts of a variety of the programs implemented. Some have worked well. Others have been unmitigated disasters. The fact is, though, we have been faced with an array of unintended consequences in the process. The traditional rule book for investing and economics is not very helpful in our world circa 2011.
Tags: easy money unintended consequences, emerging market inflation from Fed's easy money quantitative easing, Federal Reserve policy of easy money, financial economic political social and civil, food inflation in Egypt, global inflaiton from quantitative easing, global inflation from Fed''s easy money, impact of Fed policy on Egypt, impact of inflation in Egypt, inflation in Egypt, instability in Egypt, Larry Kudlow, law of unintended consequences, political turmoil in Egypt, political upheaval in Egypt, unintended consequences, unrest in Egypt, Washington policy impact on Egypt, Washington policy on emerging markets
Posted in General | 10 Comments »