It may not be next week, or even the week after, but I think the global economy is at stall speed, and there is nothing anyone can do to stop it

John Hussman wrote a couple of weeks back that QE3, even if done, will have little impact

Seriously, can the Fed, with a straight face, argue that long term rates aren't low enough with the yield on the 10 year somewhere around 1.5%?

If four years of low rates, increasingly affordable housing and dropping fuel prices hasn't been sufficiently stimulative, what on earth can do the trick?

Did you read his latest piece?

He pretty much sums it up, imo:

The Heart of the Matter

...To a large extent, this downturn is a "boomerang" from the credit crisis we experienced several years ago. The chain of events is as follows:

Financial deregulation and monetary negligence -> Housing bubble -> Credit crisis marked by failure to restructure bad debt -> Global recession -> Government deficits in U.S. and globally -> Conflict between single currency and disparate fiscal policies in Europe -> Austerity -> European recession and credit strains -> Global recession.

In effect, we're going into another recession because we never effectively addressed the problems that produced the first one, leaving us unusually vulnerable to aftershocks. Our economic malaise is the result of a whole chain of bad decisions that have distorted the financial markets in ways that make recurring crisis inevitable.

[link to www.hussman.net]