Anyone know when QE3 will get announced?
- Thread starter noob_trad3r
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MRK will cut 13,000 jobs. QE3 is coming sooner than you think.
Quote from Visaria:
I just realised that 2012 is an election year. Since the Fed likes to help the hand that feeds it, I would say QE3 starts beginning of next year, for 11 months.
Really? Think this through a moment. What is QE3 going to do? Boost stocks? That hasn't helped the public one bit. What it's REALLY going to do is drive up commodities and inflation, especially oil and the price of gas.
That will choke off the "hand that feeds it" so to speak, faster than anything.
QE3 may yet come, but I would say they're extremely worried about doing it. Oil is around $100 right now even without it.
If the price of gas goes back to $4.50, Obama is done.
Come to think of it, yeah. Bring on QE3!
QE3 is coming in August, the market is down too many days in a row, companies are laying thousands and thousands of people and the economy is "STILL" in a recession!!!
In JULY alone there has been thousands of jobs lost
CSCO laying off 6500
RIMM laying off 2000
HSBC 10,000
Borders 10,000+
and its only going to get worse!
In JULY alone there has been thousands of jobs lost
CSCO laying off 6500
RIMM laying off 2000
HSBC 10,000
Borders 10,000+
and its only going to get worse!
Well maybe not tomorrow, or next week. But if and when the S&P 500 falls by 10% or 15% or 20% .... at some point Bernanke will do what he has always promised to do and print print print.
You don't need an economics degree to be a central banker. You just need to know (1) how to press the print button, (2) to ignore worries about rising commodity prices. They are always "transitory".
I would say that there's a bit more to being a central banker.
I know we always shit on these guys and make jokes about printing, but they aren't insane - literally. They may have different (wrong) beliefs on what stimulates the economy, because it's worked so many times before. But at some point, and I think we're there, I think they get really worried that they cannot solve everything and they begin to define what the level of "acceptable loss" is.
I know we always shit on these guys and make jokes about printing, but they aren't insane - literally. They may have different (wrong) beliefs on what stimulates the economy, because it's worked so many times before. But at some point, and I think we're there, I think they get really worried that they cannot solve everything and they begin to define what the level of "acceptable loss" is.
You're right that they're not literally insane.
However I don't think we're "there" at that "point" quite yet.
Although oil prices are higher than what they were in early 2009, they're not high enough yet to cause widespread anger, especially considering the high unemployment rate and recent high-profile layoffs.
The magical "line in the sand" mark of $4 gasoline has not yet been reached either.
Hence why I think QE3 will come if the stockmarket continues to decline, and/or the economic data continues to be poor.
In a recent post-Fed meeting press conference, Bernanke disavowed responsibility for rising commodity prices.
Only when $WTIC is consistently above $110, and gasoline consistently above $4, will there be more concern given to rising commodity prices.
I'd be incredibly surprised if unemployment went to 11% plus, and/or the S&P 500 fell below 1180, that QE3 was not implemented.
QE3 will come soon enough if the USA defaults... but why does it even have a debt ceiling to begin with? The only other country in the world who has one is Denmark. It's kind of pointless...
M
morganist
Especially when it keeps rising.