The decision of the Federal Reserve announced on Wednesday to continue the policy known as Quantitive Easing, or QE3, was called surprising by many on Wall Street. But astute observers could have seen that the reasons for the original so-called quantitative easing are still present. These include high unemployment, stagnant wages, and jobs which continue to move over-seas. Being a quasi-political "animal," the Federal Reserve did the only thing it really could do -- continue to pump money into the financial sector. This bid to strengthen the economy will not work in the long-term just as it has done nothing to truly create jobs, strengthen the economy, or end the recession.
The announcement that quantitative easing could continue into the new year, further hints at doubts about any impending economic turn-around. Ironically, the Fed has turned out to be one of the more honest institutions in a very dishonest business.
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