That hampers the Fed’s ability to push through its objectives, bolstering economic growth while keeping inflation in check. Rodriguez says the Fed’s all-in approach may be a good tactic for playing poker but is a mistaken approach for managing an economic recovery.
Rodriguez says these are different and untested waters. That keeping interest rates low for a sufficient period of time to let the economy gain traction is dangerous, misdirected, and untested.
Crook admits that QE3 took the Fed into new territory and that it may result in unintended consequences. He also says the technical issues raised by analysts and economists seem manageable.
And the risks of allowing subpar demand to continue are certain and way too large.
Demand is the goal of QE3. With so many people out of work and interest rates at zero, the economy needs a good shot of stimulus. But the devil is in the details and the Fed has left those details fuzzy, giving critics ample room for dissention.
Some say that the purchase of mortgage bonds is something investors will readily assimilate into their portfolios, making no difference in demand.
The second objection is that QE3 will have unintended consequences. Bernanke admits that if the Fed becomes the primary buyer in these markets, it could dry up trading among private agents, limiting liquidity and price discovery.
Rodriguez points to the disparity between the rallying markets and the lackluster economy, saying the discrepancy between market action and economic reality cannot be sustained.
He says continued focus on keeping rates low increases already huge pressures on fixed-income investors and financial organizations. He believes Bernanke should be replaced after the presidential election with a far less monetary-intrusive Fed chairman.
Crook says the biggest problem the Fed has is its inability to sufficiently explain its actions.
He says the most important question to ask is whether QE3 can deliver some level of stimulus. And the answer to that question is yes.
Debates are healthy things, however, and they help you see more than one side of an issue. Do you think QE3 will be effective? Why or why not?
This Website Is For Financial Professionals Only
|
|
|
MEMBER REVIEWS
|
 |
|
William Desormeau, Jr.
|
|
It is not possible for me to overstate the cumulative value that Craig, Bob and Fritz have added for over 10 years to my investment advisory practice, as well as for personal and family financial planning. A4A gets my highest recommendation
|
 |
|
Lynn Najman, CFP®
|
|
I’ve subscribed to A4A since its inception, and always find it intellectually stimulating and on point. It’s one of the few CE solutions out there that doesn’t waste my time by pushing product or talking down to me.
|
|
|
| Pete Deacon, CPA, CFP® |
| A4A has had a profound effect on my business. Since 2009, I’ve relied on the consistent messaging and updates to run my business successfully. Being able to present the information from Bob, Fritz, and Craig's ongoing CE webinars has been a significant benefit. |
|
|
| Fredric Mayerson, MBA, PhD, CFP® |
| I've been a financial professional and professor of finance for 35 years and find Fritz Meyer and Robert Keebler to be among the most engaging, incredibly knowledgeable, and experienced presenters I’ve encountered. They deliver an extraordinary amount of information in an extremely interesting way — sequentially and developmentally, utilizing pedagogical tools and techniques that few possess. A4A to is the most consistently excellent CE program available. |
 |
| Ron Roge, MS, CFP® |
| I’ve been attending A4A many years because the CE classes are outstanding, and my time is valuable. Though I have over 35 years of experience, I’m always learning something new on A4A. I attend fewer conferences now because the CE is generally not advanced. If you want to learn from the best, in a faster, easier, and less expensive way, I highly recommend A4A. |
 |
|
John R. Day, CPA/PFS® |
|
I’ve been a member since 2011 and never miss the monthly webinars with Fritz Meyer. I appreciate Fritz’s independent views on the economy and markets and Bob Keebler keeps me updated on excellent tax planning ideas. A4A is a great value! |
 |
|
Norman Politziner, CFP |
|
I wouldn't miss a Fritz Meyer webinar unless my pants were on fire. I've relied on Andrew Gluck's knowledge systems --client communications and CE -- for two decades. It's simply the best solution for tax, financial, investment, and risk-management professionals.® |
|
|
|
Dan Hawley, CFP® |
|
A4A, for over a decade, has been a great resource for useful and accurate information and CE. A4A and Advisor Products are bargains for an advisory practice. |
|
|
Kevin Brosious, MBA, CFP®, CPA/PFS® |
|
I get CPA CE credit and CFP credit for the webinars. But not only that, the A4A content is terrific |
|
|
|
|
|
|
