Effect of QE2 ending

[trading1]

There's been mnay articules written on the consequences of QE2 ending, to suggest that commoditys and possibly stocks will fall and bonds remain uncertain. What's your view and why is there no indication of these effects coming on early, or is everyone going to wait for 1st July?

 

[S2007S]

Effect of QE2 ending = the start of QE3

 

[Ash1972]

Three points:

1) Since QE2 was announced last Summer, long bond prices have fallen like a rock. So much for intervention.

2) There is growing opposition both inside the Fed and politically to even allowing this round of QE to finish.

3) Monetizing other people's debt will eventually drive the Fed bankrupt. It is a private corporation with shareholders who will not let it go bust.

NOW what do you think will happen?

 

[AK100]

As the other 2 posters have said, it's not ending, the fools are in too deep to stop now.

 

[trading1]

I personally think QE2 is ending, many people disagree. Perhaps most people disagree? And this explains why stocks and commoditys keep rising? Surely theres going to be an abrupt change when & if it does end?

If its not going to end why are there so many noises from the Fed about it ending?

 

[Ash1972]

Quote from trading1:

I personally think QE2 is ending, many people disagree. Perhaps most people disagree? And this explains why stocks and commoditys keep rising? Surely theres going to be an abrupt change when & if it does end?

If its not going to end why are there so many noises from the Fed about it ending?

Because the Fed is going bankrupt trying to take other people's investments off their hands. See my earlier post.

 

[misterno]

If a new QE does not start, how else would they improve the economy?

Budget deficit, trade deficit, unemployment, house starts, house sales, are all going worse everyday.

They must have a new QE

 

[Ash1972]

Quote from misterno:

If a new QE does not start, how else would they improve the economy?

Budget deficit, trade deficit, unemployment, house starts, house sales, are all going worse everyday.

They must have a new QE

Agreed. We need QE3 because QE 1 and 2 have been so brilliantly successful

 

[trading1]

Quote from Ash1972:

Because the Fed is going bankrupt trying to take other people's investments off their hands. See my earlier post.

Yes, the previous post is meaningful, though point 2 seems to suggest there won't necessarily be a QE3. Didn't one of the Fed chiefs actually resign in protest, theres also mountains of other comments in support of QE2 ending.

 

[trading1]

Quote from misterno:

If a new QE does not start, how else would they improve the economy?

Budget deficit, trade deficit, unemployment, house starts, house sales, are all going worse everyday.

They must have a new QE

I agree they might hold of tightening but that does not mean continuing with a QE3. Isn't the Feds concern unemployment and interest rates/inflation? They aren't exclusively responsible for the economy at large. Besides, the economy is bad but the markets are hardly falling off a cliff at the moment.