QE leaves investors in an awkward spot. There are no safe places to place money with any yield. So, you can earn zero, or take risks that seem uneconomic to gain yield. Almost makes me want to be a trader, because there is little logic to where I invest. There is no obvious place for me to invest.
If the government thinks that QE will force investors to invest, I have news for them — yes, some will take more risks, but they will lose through their investing. Risky assets are only good at a fair or fear price, not at one dragged low by QE. Trying to tweak our psyche as a whole is ridiculous, and deserves only scorn by voters and investors.
Ben Bernanke take your hand of the print button and then go back and start your dissertation over with what you have learned in the last few years.
