Of Rubicons And Cliffs

clipped from www.marketwatch.com WASHINGTON (MarketWatch) - The Federal Reserve's decision Wednesday to buy $300 billion in longer-term Treasury securities has ignited a firestorm, with analysts saying it will either cause a currency crisis or jolt the economy out of the morgue. "We're in a car heading for a cliff and the Fed has just stepped on the gas," said Peter Schiff, the author of a best-selling book 'Crash-proof' and one of a handful of economists who worried about the economy long before it slipped into a severe recession. Lou Crandall, economist at Wrightson ICAP, said he doesn't think yields will stay low. "Once the initial surprise wears off, the market tends to look past public-relations moves in most cases. Ultimately, we think the market is likely to focus on the fact that the net market supply of intermediate- and long-term Treasuries is still growing rapidly even after taking the Fed's buybacks into account," he said.