To the Editor:
When this $40 billion-a-month mortgage program was first announced by the Fed, the market rallied. The emotion of the moment took over. Then, the analysis of the short-term/long-term implications started and the folks who do this for a living know the long-term implications. Equate this to a heroin addict who receives that initial fix ($40 billion this month) and it
feels so good, but does not realize that this heroin fix eventually will kill him.
The smart money knows that we just have accelerated our march to the fiscal cliff (phrase used by the IMF, Bill Clinton and others) by now adding $480 billion to our annual debt. This is on top of the annual $1 trillion the Congressional Budget Office projected some time ago through 2016. Again, hold onto your wallets.
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