Koo: Fed Unable To Ease My Concerns Over QE Trap

Nomura chief economist Richard Koo returned from a recent trip just in time for the government shutdown, and even though the government managed to avoid default, lost credibility could hurt the U.S. just as we need to deal with the coming QE trap. Richard Koo on government shutdown “The actual damage and the loss of confidence caused by the shutdown of the US government for more than two weeks are significant, as they signify an increase in the risk premium involved when doing business with the government,” writes Koo. Even though Tea Party tactics have proven to be deeply unpopular,…