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Will QE2 Sink the US?

Monday, 11 Oct 2010 | 6:12 PM ET

Many investors are betting that the Federal Reserve will try to prop up the economy with a second round of quantitative easing or QE2.

While some think that pushing money into the economy could be just the jumpstart it needs, Gary Shilling of A. Gary Shilling isn't sure it will matter.

"The Fed has already tried QE1 and QE2 may be a slow boat to nowhere," said Shilling on Monday's "Fast Money," adding that while the first round of monetary policy might have knocked down interest rates 50 basis points and made houses affordable, interest rates don't matter when people are out of work and can't afford a house period.

In other words, because QE2 is not about creating jobs, the economy will continue to suffer.

Watch the video to see the full conversation with Shilling.

Will QE2 Sink Us?
Fed chief Bernanke is facing many dissenters amonst peers surrounding QE2. Insight with Gary Shilling, Gary Shilling & Co. president.

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Trader disclosure: On Oct.11, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Seymour owns (AAPL), (GE), (GOOG), (INTC), (MON), (MSFT), (MOS), (POT); Pete Najarian owns (DD); Pete Najarian owns (GE); Pete Najarian owns (POT); Pete Najarian owns (BEXP) calls; Pete Najarian owns (BP) calls; Pete Najarian owns (BME) calls; Pete Najarian owns (ERTS) calls; Pete Najarian owns (GDXJ); Pete Najarian owns (BRCD); Pete Najarian owns (CNI); Grasso owns (ASTM), (BA), (BAC), (C), (CSCO), (JPM), (LPX), (MO), (MOT), (NDAQ), (PFE), (PRST)
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