So they are ready to do it. When the QE2 finishes, the markets
will resemble another ocean liner, the Lusitania, which sank after
it was torpedoed. The markets will sink just as fast and our
politicians will be screaming for blood when it is they who are
torpedoing this economy with debt charges. Mixed metaphors
anyone?
A lotta smart money guys I talked to in September said the Fed
wouldn't dare trying QE2
officiallyunless stocks broke SP 1000. Why do it here? They already have
the benefits of doing it, without actually doing it (just hinting
at it has achieved everything). Remember Ben himself said one of
their greatest policy tools was talk. Talk is cheap, are stocks
cheap?
The problem with not doing it is they went out of their way to
hint they would do it in their Sept meeting. The market is
pricing at least $500B QE at some point after the election and now
since the minutes, perhaps even $1T. If they
don't follow through, all the front runners will have to bail and
that will surely tank the market, which at this point
must be a huge concern.
"This “sterilization” of unwanted financial speculation is
precisely what the United States has criticized China for doing.
China has tried more “normal” ways to recycle its trade surplus, by
seeking out U.S. companies to buy. But Congress would not let CNOOC
buy into U.S. oil refinery capacity a few years ago, and the
Canadian government is now being urged to block China’s attempt to
purchase its potash resources.
This leaves little option for China and other countries but
to hold their currencies stable by purchasing U.S. and European
government bonds."
Or, it may force them to take {WAR!!}what we won't allow them to
buy....hmmm didn't we force Japan into a similar box pre WWII??
using CNBC's interpretation, yes there will be QE2, but not
quantified (that's important as the media pundits will interpret
that for the next few weeks). that will be left to the nov. meeting
(election timing?) of course there will be 2 new board members
(Doves - whatever that means). bottom line. FED extends the put for
risk assets.
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
QE2
Posted by perthx on 12th of Oct 2010 at 02:06 pm
So they are ready to do it. When the QE2 finishes, the markets will resemble another ocean liner, the Lusitania, which sank after it was torpedoed. The markets will sink just as fast and our politicians will be screaming for blood when it is they who are torpedoing this economy with debt charges. Mixed metaphors anyone?
A lotta smart money guys
Posted by PA on 12th of Oct 2010 at 03:49 pm
A lotta smart money guys I talked to in September said the Fed wouldn't dare trying QE2 officially unless stocks broke SP 1000. Why do it here? They already have the benefits of doing it, without actually doing it (just hinting at it has achieved everything). Remember Ben himself said one of their greatest policy tools was talk. Talk is cheap, are stocks cheap?
The problem with not doing
Posted by steever on 12th of Oct 2010 at 03:54 pm
The problem with not doing it is they went out of their way to hint they would do it in their Sept meeting. The market is pricing at least $500B QE at some point after the election and now since the minutes, perhaps even $1T. If they don't follow through, all the front runners will have to bail and that will surely tank the market, which at this point must be a huge concern.
behind the scenes
Posted by jbidmt on 12th of Oct 2010 at 02:13 pm
http://www.counterpunch.org/hudson10112010.html
nice article
Posted by perthx on 12th of Oct 2010 at 02:22 pm
They say:
"This “sterilization” of unwanted financial speculation is precisely what the United States has criticized China for doing. China has tried more “normal” ways to recycle its trade surplus, by seeking out U.S. companies to buy. But Congress would not let CNOOC buy into U.S. oil refinery capacity a few years ago, and the Canadian government is now being urged to block China’s attempt to purchase its potash resources. This leaves little option for China and other countries but to hold their currencies stable by purchasing U.S. and European government bonds."
Or, it may force them to take {WAR!!}what we won't allow them to buy....hmmm didn't we force Japan into a similar box pre WWII??
right on, very similar
Posted by PA on 12th of Oct 2010 at 04:30 pm
right on, very similar
using CNBC's interpretation, yes there
Posted by hazbin1 on 12th of Oct 2010 at 02:09 pm
using CNBC's interpretation, yes there will be QE2, but not quantified (that's important as the media pundits will interpret that for the next few weeks). that will be left to the nov. meeting (election timing?) of course there will be 2 new board members (Doves - whatever that means). bottom line. FED extends the put for risk assets.