I am not an economist but this article expresses what I concluded after puzzling why "easing" did not produce wild inflation. First I thought it was just delayed and we were going to get it all at once after reaching some critical mass. Then I thought the money created was just replacing the wealth destroyed by the crash. I have since concluded, like the article says, that deleveraging by the banks and the market has kept the lid on. I guess Uncle Miltie missed this possibility because historically the public has had a short term memory loss on pain and snapped back into risk taking fueled by wishful thinking. I also think that the free market has always controlled what happens in the long run. We only manipulate the temporary path but not the trend. Sometimes we think we are managing markets but we are just stealing from the future and will eventually pay. When we get into trouble is continuing to try to correct the course against the will of the market.

I've never met a libertarian who accepts any decisions made by the fed...including me.

But hey I like Milt as well and his great sharing of I, Pencil.
"Leave all creative energies uninhibited"

My only request.