You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Pimco and Blackrock say QE3 on the way....
- Thread starter achilles28
- Start date
Quote from atticus:
Congress won't. Nobody from the House has called to ask my opinion. Use of the hypothetical(s) are a means to reinforce a bias. I am not attacking you, but I will assume you're net-long and talking yourself deeper into your positions.
I'm flat. And my only bias is long because fundamentals point down and I expect the FED to intervene. What I'm saying is a costless plan of action doesn't exist. QE3 has it's benefits and costs. No QE3 has it's benefits and costs. The totality of both weighed against each other, from a politically perspective, I think, favors more stimulus. Stable employment and a weaker dollar? Or big layoffs and a stronger dollar? When push came to shove, Americans overwhelming supported more debt, despite all their outrage to the contrary. They wanted their checks. Principle falls to the wayside if handouts are jeopardized.
Quote from atticus:
Stimulus, of any kind, is completely abhorrent to Congress at this time. There isn't a chance in hell that QE3 is announced in 2011.
When the executive branch says jump the the board asks how high. Congress is irrelevant.
If the administration wants stimulus, and can't do it on the fiscal side, we'll have QE3 or some other monetary machination.
Of course none of it will work, increasing excess reserves will not create more demand for credit.
?Quote from atticus:
Politically untenable.
politicians only care about being reelected.
how is q3 untenable? the public is ignorant of economics. obama is the reincarnation of juan peron. he is for the poor. he is for the college slackers. he is for big unions ie gov't worjers. uaw etc. there are numerous of them in the country and on ET. conclusion is he will be reelected by a large majority and lead the country to a hyperinflationary depression.
is the avg. person in the US smarter than than the avg. in argentina.
what is untenable?
Quote from achilles28:
Clearly QE works to stabilize equity markets and employment, at least in the short term. Otherwise, the recent sell-off/lay-offs since the end of QE2 (July) wouldn't have occurred. Nor would the V-bottom reversal of 2008 occurred without unprecedented FED intervention. I would say to the contrary, our fundamental economic problems are related to money supply and demand driven credit. The private sector is in the middle of a giant deleveraging cycle which killed loan demand and created huge deflationary pressures in asset markets. The Government and FED stepped in to offset private sector deleveraging with massive deficits and QE. I'm not arguing the case for additional quantitative easing. It's a band-aid, and an effective band-aid at that (depending on perspective). I'm merely arguing the merits of that quote. Like most people here, I would love to see the end of all QE, deficits and take the pain. But honestly, look at Bernackes track record. He's 1000% opposed to any deflation. In his mind, deflation is the number#1 threat to stability. He's a total dove, owned by Wallstreet. The only leverage Washington has is his Chairmenship comes up for renewal in 2014. Does anyone here think voters prefer 30% unemployment over high gas prices...? Didn't the recent debt deal prove that? Americans overwhelming supported bipartisan compromise to increase the debt ceiling, despite widespread opposition and outrage against an even higher national debt. When confronted with a meltdown scenario, Americans chose their handouts and jobs over principle. Everyone loves to rail against the debt, as long as doing something about doesn't effect them. Nobody wants to take the pain. The politicians know this and will act accordingly, imo.
Tell you what, at the end of the day the world economic and poltiical systems will melt down as a resultof lawless multinationals who own and operate corrupt governments the world over. of course its all done under the guise of globalisation and market efficiency. In the end we will all be on the losing side of this trade.
And if QE3 does happen?
QE3 will signal that they finally admit we are in a Depression. A real DEPRESSION. They can not kick the can down the road, it is here and QE3 will force News Papers to print DEPRESSION. Of course the Propaganda Machine will spin it toward the fault of Tea Party or something of that nature.
GOLD will shoot to 2000. Oil will double as will gas prices.
Food prices will double.
Market will sell of harder than it is now people.
QE3 in the form of printing money will put all hope of any recovery, all be it false hope, out the window if made public.
Now, if in typical fashion of "OBAMA" and by pass Congress and pull a behind closed door move....slowly leaking printed money out in to the system...like they just did for "HOME OWNERS IN TROUBLE", then the Shock of the printing of money will be slow. Much like a frog in a pan of water, heat slowly being turned up on the frog....only for the frog to realize when its to late.
IMHO, that is how QE3 will come about. 2013/2014
QE3 will signal that they finally admit we are in a Depression. A real DEPRESSION. They can not kick the can down the road, it is here and QE3 will force News Papers to print DEPRESSION. Of course the Propaganda Machine will spin it toward the fault of Tea Party or something of that nature.
GOLD will shoot to 2000. Oil will double as will gas prices.
Food prices will double.
Market will sell of harder than it is now people.
QE3 in the form of printing money will put all hope of any recovery, all be it false hope, out the window if made public.
Now, if in typical fashion of "OBAMA" and by pass Congress and pull a behind closed door move....slowly leaking printed money out in to the system...like they just did for "HOME OWNERS IN TROUBLE", then the Shock of the printing of money will be slow. Much like a frog in a pan of water, heat slowly being turned up on the frog....only for the frog to realize when its to late.
IMHO, that is how QE3 will come about. 2013/2014
At some point this QE shit has to stop. I've heard about some time before I was born, that the economy used to be allowed to go through it's cycles naturally. What happened?
Quote from ElecEquity:
At some point this QE shit has to stop. I've heard about some time before I was born, that the economy used to be allowed to go through it's cycles naturally. What happened?
Politicians and central bankers started to get involved where they shouldn't. Most of them (nearly all of them) don't want a deep recession / depression on their "watch"