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.
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A lotta smart money guys
QE2
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.