What will the markets do if we dont get QE3 on Thursday?
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Unless they come out right and say there is zero future hope of any QE at all, not much will happen. The markets believe the QE will arrive already. I'm more afraid of the German court decision tomorrow.
I'm guessing a Muppet would probably go short, or remain so.
It also depends on the decision by the German Court as well. So if court agree to the EU proposal than there's literally a lot less focus on QE, Ben can go about his usual, low/moderate inflation, promise of future QE (stronger tone perhaps), and mild negative economic outlook pep talk without worrying about repercussions.
Basically the markets is entrenched in the belief that QE will come sooner or later, at the more opportune time to prevent the steep drop, so it can afford to be reckless in the current endeavors. There won't be any drastic shift in sentiment until either the economy (here or abroad) deteriorate rapidly or Ben publicly say no to QE which is not any time soon.
Ben will slow play his hand until the market stop drinking the coolaid and that time has not arrived yet. So the path of least resistance is still up.
The expert on depressions will do anything to keep us from going into one except that he's oblivious of the fact that we're already in one (at least in main street) and about to go deeper into it.
Basically the markets is entrenched in the belief that QE will come sooner or later, at the more opportune time to prevent the steep drop, so it can afford to be reckless in the current endeavors. There won't be any drastic shift in sentiment until either the economy (here or abroad) deteriorate rapidly or Ben publicly say no to QE which is not any time soon.
Ben will slow play his hand until the market stop drinking the coolaid and that time has not arrived yet. So the path of least resistance is still up.
The expert on depressions will do anything to keep us from going into one except that he's oblivious of the fact that we're already in one (at least in main street) and about to go deeper into it.