QE3 to the Rescue in a Slowing Economy; Special Report by Leading Financial Web Site Investment Contrarians
Saturday, June 23, 2012 at 02:44PM Houston Chronicle
In a recent Investment Contrarians article, editor Danny Esposito argues that there will be a third round of quantitative easing (QE3) because the Fed needs to have some kind of GDP growth. Esposito believes not only will there be a QE3, but also a QE4, QE5 and so on.
New York, NY (PRWEB) June 23, 2012
In a recent Investment Contrarians article, editor Danny Esposito argues that there will be a third round of quantitative easing (QE3) because the Fed needs to have some kind of GDP growth. Esposito believes not only will there be a QE3, but also a QE4, QE5 and so on.
“The first of four main components of GDP growth is consumer spending,” explains Esposito, “which is 70% of the economy here in the U.S. and has been the main driver of growth worldwide before the economy collapsed in 2008.”
It is safe to say that consumer spending levels will not reach pre-2008 levels until debt is paid down and incomes rise, comments Esposito.
The second of the four components of GDP growth is business investment, according to the editor. There frequently have been stories in the press about how corporations are holding onto a record amount of money on their balance sheets.
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