What if QE2 does not come?

[trefoil]

Reality

Reality bites, but utopian bs is worse. The Fed has to do what it's doing, not because of what Munchau says, even, but because in the reality we all have to live in, China exists. And the US is not going to become a colony of China just to satisfy some demonstrably incompetent fool's version of an ideal world.

 

[JSSPMK]

Pull productions out of China already

 

[gtizzle101]

Quote from piezoe:

Correct me if i'm wrong guys and girls, but I thought QE2 already happened!. I mean the Fed has been buying bonds like crazy and expanding their balance sheet. Next to China I think they are now very close to the second largest holder of Treasury bonds. How can you get more QE2 than that? That's supposed to hold down long term rates, i.e., mortgages, and they allready have the short term rates barely positive. This has done its intended work on the dollar, boosted the market, made all our export competitors jumpy. I mean, how can you get more QE2 than that? Well maybe drop a few trillion from helicopters and set short term rates below zero. The Fed pays you to take their money?

www.clevelandfed.org

they have been buying bonds just to maintain the balance sheet levels not add to it.

 

[dandxg]

Quote from psytrade:

If anyone remembers how the fed acts, did they issue a bailout pre-Lehman or pre-Bear? Of course not. shit hits the fan, then they ease. Why anyone can't follow the order of things is beyond me, because the Market is doing precisely that- ignoring the fact that the fed waits until late in the game to ease.

Yes and with QE 1 the telegraphed what they would do and it happen. Trash dollar markets go up. Why should I expect a headfake. Anyone can see the economy isn't improving unless you live on De Nile.

 

[S2007S]

I am thinking, if 80-85% of S$P companies are beating earnings by a huge margin why do we need QE2, seems the only ones benefiting from it are huge corporations like the big banks and the rest of wallstreet.

 

[jnorty]

its insanity to do more stimulus. as far as earnings they suck outside a few tech names. remember co's like intc and csx and jpm had there ests lowered huge in the past few months. The mkts added $2 trillion in wealth the past 7 weeks. theres no need for any stimulus

 

[JSSPMK]

They need to keep ball rolling to keep their jobs, whatever happens in 10 years from now is not their main concern. High end politics is beyond the grasp of most on this planet, because of all the secrets surrounding longer term goals.