Remember the old TV show MASH? When the choppers and buses would bring in scores of wounded soldiers all at once, completely overwhelming the medical staff, who were scrambling to provide care? The first thing they would do would be to assess the scope of the damage, then stabilize the injured and prioritize which patients got tended to first. To borrow the words of Jim Grant, it was "fast and ugly" in action.
The other side of that type of urgent triage would be "slow and ugly," a euphemism often used to describe the current course of action the Federal Reserve and Treasury have embarked upon to restore the economy. But now that we're more than three years into it, critics such as Jim Bianco of Bianco research say it's high time we started moving forward.
"Quantitative easing is all about trying to prevent pain in the marketplace," he says. " But in doing so, it prevents adjustments, and that's why markets like housing can't move forward."
Given the latest housing statistics, fewRead More »from Time to Let Markets Adjust on Their Own, Stop Intervention: Jim Bianco