I just saw this great article by Doug Kass. It's well worth a read. Kass pulls out a devastatingly illuminating quote from Dallas Fed president Richard Fisher's speech to the New York Association for Business Economics and makes a long list of excellent points. Great stuff.
Here are a few of my own favorites from Fisher's speech (emphasis mine):
"It is one thing to stabilize the commercial paper market in a systematic way. Going beyond investment-grade paper, however, opens the door to pressure on a central bank to back financial instruments benefiting specific economic sectors."
Hesitation.
"There is a great deal of legitimate debate still to take place within the FOMC on the subject of quantitative easing and the pros and cons and costs and benefits of further monetary accommodation. Whatever we might do, if anything, must of course be consistent with long-term price stability."
Stalling.
"Whatever we do with monetary policy will be of limited utility, if not counterproductive, unless it is complemented by sensible fiscal policy that restores confidence and puts the American people back to work."
Cry for help.
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