Pimco and Blackrock say QE3 on the way....

Quote from intradaybill:

The reasons they argue that are mainly politically motivated. QE prevented massive bank default.
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Are you stoned right now?
 
Quote from intradaybill:

The reasons they argue that are mainly politically motivated. QE prevented massive bank default. It was basically a scheme for re-capitalizing banks. The velocity of money is still falling and that means that more QE is needed to bring banks to a point that they can lend or, alternatively, the money can be diverted directly to corporations by buying corporate paper. This will certainly increase employment. This is the next step. This is what I would do while, at the same time, getting preferred stock in those companies as collateral.

Banks have received a very strong blow and it is questionable whether traditional money market operations can lead the economies of US and Europe out of the turmoil. Money has to go directly to corporations IMO.
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please explain the exact mechanics - how buying corporate bonds, which is already at record lows, will help to improve employment inside the USA

I know QE1 and QE2 helped a lot to create jobs in China but how will it create jobs in USA?
Why companies would hire someone in the USA for even $10/h when they can hire someone in China or Vietnam for 1$/h
 
Quote from canuckrookie:

Havn't seen you post any facts to counter what he said. Not sure about you but I always feel more confident when I get free money with no strings attached. :D
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what facts do you want? QE2 was a major failure
except by propping up asset prices in less worth dollars it has not achieved anything
economic data started worsen when QE2 was in full swing
so it's pretty obvious it didn't work

and will you feel more confident if those money are zimbabwe dollars?
 
It's all a balancing act. If you drain excess money in timely manner, then ok. Need QE3 to keep confidence up and buy time until the economy reaches escape velocity.
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Some of you have some valid points.

However, when is the economy going to reach "Escape Velocity".

Your thinking in the same old BOX. Your not looking beyond the Stock Market. I play in the world of "HARD ASSETS and GOODS". Not "Paper Wealth".

What I mean is, I am on top of price changes in Hard Assets. There is a huge Correlation between higher oil prices and Printing money.
So, what happens when oil tops 140 again, but hold for long term.
I will be fine, as I own %s in a few producing oil wells, my revenue checks doubled in the last few months. They will triple under QE3.

Take me out of the equation. Higher Energy Prices will kill the consumer, will slow manufacturing down and tight'n their margins.
It will bankrupt more Airlines, cost of goods across the board will go up. Layoffs will happen. QE3 will work against the true economy. It may pump in more cheap dollars and prop the Stock Market Up but that is about it.

We have had QE 1&2, Stimulus 1&2, cash for clunkers, GM rescue, et all. And read the GDP numbers as they are revised. Follow the GDP trail to now. Economy has not got'n better we are still near 20% real unemployment. Economy is still very weak and housing is still loosing ground.


Bottom line people. There are two distinct reactions. 1: Deep Depression is allowed to happen, naturally shakes out the weak animals, destroy's excess cheap money and naturally finds a bottom that is solid and that has faith. WE ARE NOT GOING DOWN THIS ROUTE.

So 2: is what is happening. A PROLONG Depression much like Japan's Generation of leverage Unwinding. We are going to have real unemployment between 20-23% We are going to have serious inflation, not sure about hyper inflation but we are heading towards 6-8 bucks a gallon of gas. We are going to have companies move off shore due to Taxation, via Health Care, et all.


You can have QE,4,5,6,7......It does nothing to the real economy. In fact all the studies I have read and use for our research show, very little sustainable real economic activity was spurred by Q1, 2, Stimulus 1,2.

Game over kids. If you are not the top guy on your team, if you are not a Rock Star along side your cubical monkey's, if you are expandable in any way, your job is threat'n. HSBC is just the first on a Global Scale to get rid of new dead weight.

GDP is 70% consumer spending. THINK ABOUT THAT.

Also think about, the Fed Gov our debt service is now 100% of our GDP.

We are GREECE.
 
I know QE1 and QE2 helped a lot to create jobs in China but how will it create jobs in USA?
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No so. QE1 and QE2 allowed the US to export serious inflation. Hence Brazil, China, et all intervening to soften their currency.

In a sense, Jobs were leaving way before QEs do to Globalization.
 
Quote from ammo:

be less painful to let the spu's get back to 1150 area
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I hear that. I may be a dumb bumpkin but seems like a simple correction would bring a flood of money into the market. We need to hit the reset button again. I think the boom/bust cycle just gets magnified with all this funny money sloshing around.

What's wrong with market upheaval anyways. Are we really at that big a risk for a "Mad Max" outcome or is this all posturing and politics for 2012 elections?
 
Quote from intradaybill:
The reasons they argue that are mainly politically motivated. QE prevented massive bank default. It was basically a scheme for re-capitalizing banks. The velocity of money is still falling and that means that more QE is needed to bring banks to a point that they can lend or, alternatively, the money can be diverted directly to corporations by buying corporate paper. This will certainly increase employment. This is the next step. This is what I would do while, at the same time, getting preferred stock in those companies as collateral.

Banks have received a very strong blow and it is questionable whether traditional money market operations can lead the economies of US and Europe out of the turmoil. Money has to go directly to corporations IMO.
More...
I disagree...
 
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