Anyone know when QE3 will get announced?

[psytrade]

QE2 is a portfolio allocation strategy- it forces people who would have otherwise bought bonds to buy risky assets instead - in the short term.. the effect in the financial Markets is "inflation". But in the longer term.. QE is actually deflationary, as the interest that the public would have gained on $500 billion in bonds gets sucked out of the system. Also being at the end of a credit bubble negates the benefit of steering the yield curve, you end up pushing on a string...

Warren Mosler's many articles, and specifically Mark Lapolla's recent Welling@Weedenco April 29th article gives in-depth opinion on this specific issue.

http://welling.weedenco.com/html/1307_LI_Lapolla.pdf

 

[marceck]

Quote from noob_trad3r:

Will it be the next meeting?

There will be no QE3, i.e no more bond purchases past June 30th. The fear of a run on the dollar is actually a bigger concern now.

 

[kashirin]

Quote from morganist:

Good response. However I am looking at it from another view point. Not just to boost the economy but to pay off debt. As the US has hit the debt ceiling the only way they will be able to one pay for things is through QE and two more importantly repaying debt is through QE.

Either way it is not really a decision in my opinion but a matter of necessity for the above reasons. It is just a matter of time before they have to resort to printing money for one reason or another.

with current short term interest rates barely above zero it might be many years before debt monetization will be needed
And definitely that's not a short term problem

 

[FreakofNature]

It would be quite sad if a QE3 is announced.

FoN

 

[the1]

try to explain QEI, II and possibly III to non finance or econ majors is like trying to talk to a brick wall. They'll understand fully when they realize that a drape has been drawn over the depression to make it appear like a recession/recovery. Once the Fed pulls the crack and the patient will go through severe withdrawals.

Quote from Zr1Trader:

They will call it, " controlled economic expansion program" , "Job Recovery Bill" , something to that effect. Just enough to keep the sheeple slowly rotting in their own shit without realizing it.

Whenever I talk to friends or family who don't have finance as their profession....They usually don't realize what I'm talking about when I'm saying the fed is pumping trillions into the economy to prop it up and the long term consequences are huge. They just don't really care or think it will have any consequence because they figure it's just always been like this or is business as usual. The average joe will wake up more so when times get tougher. Until this happens the fed is undar the radar with their agenda to the majority thus far.

 

[TGregg]

Quote from kashirin:

with current short term interest rates barely above zero

Technically our real short term rates are subzero. But who's counting?

 

[morganist]

Quote from psytrade:

QE2 is a portfolio allocation strategy- it forces people who would have otherwise bought bonds to buy risky assets instead - in the short term.. the effect in the financial Markets is "inflation". But in the longer term.. QE is actually deflationary, as the interest that the public would have gained on $500 billion in bonds gets sucked out of the system. Also being at the end of a credit bubble negates the benefit of steering the yield curve, you end up pushing on a string...

Warren Mosler's many articles, and specifically Mark Lapolla's recent Welling@Weedenco April 29th article gives in-depth opinion on this specific issue.

http://welling.weedenco.com/html/1307_LI_Lapolla.pdf

You mean it is more qualitative Easing like operation twist?

 

[morganist]

Quote from kashirin:

with current short term interest rates barely above zero it might be many years before debt monetization will be needed
And definitely that's not a short term problem

Repayments on existing debts maybe. However the need to get capital to pay for government and growing welfare is rising and the only way to pay for that will be through printing money.

 

[morganist]

Quote from morganist:

Repayments on existing debts maybe. However the need to get capital to pay for government and growing welfare is rising and the only way to pay for that will be through printing money.

It also depends on the maturity date. Do you know when that is.

 

[morganist]

Quote from TGregg:

Technically our real short term rates are subzero. But who's counting?

Can you maintain low interest rates with higher inflation?