QE 3 Anyone?

[joslar15]

Federal Reserve Chairman Ben S. Bernanke left the door open to a fresh shot of monetary stimulus should the economic rebound he’s predicting fail to materialize.

The Fed would be “prepared to take additional action, obviously, if conditions warranted,” including the purchase of more Treasury securities, Bernanke said yesterday after U.S. central bankers met in Washington. The economy will probably overcome constraints from elevated energy prices and Japan- related disruptions to manufacturing, he said. Still, declining home prices, high unemployment and weaknesses in the financial system may restrain the recovery in the longer term, he said.

Read more: Bernanke Leaves Door Open to Easing - Bloomberg

 

[ATOMonkey]

What a dousche. Last month he was saying that there would not be a QE3. Everyone knew he was lieing.

 

[Stschil]

He's not lieing***,he just won't call it QE3. They will come up with another name and do something a little bit differently so they can say it's not a continuation.

Like maybe call it 'Inflationary Arrest Measure', buy half the amount of bonds, print twice as much money, give even less to American own banks and three times as much to foriegn owned companies. Bailout and take ownership of any and all companies they force out into bankrupcy with more failed mandates. Business as usual

 

[Rampdog]

This from the guy who's puzzled over the bad economy. No wonder we're in such dire economic straits. We have pinheads at the helm who have no idea what's going on.

 

[jedi]

Insanity is performing the same action repeatedly and expecting a different result.


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[orange]

Bernanke gave a press conference yesterday. Transcript here. Reads to me like a lot of bull****. Economic recovery is slower than we expected and we're not quite sure why and the problems will persist through 2012 and banks are part of the problem so we're going to give more money to banks and hope all is well okay

 

[ATOMonkey]

When you're only tool is a hammer, every problem looks like a nail.

 

[Stschil]

When you're only tool is a hammer, every problem looks like a nail.

When you're only Fed Chairman is a Tool, you wish you had a hammer!

 

[IndyPrepper]

QE3 will bring the sinking ship back to life again back in Nov/December with the extension of out of work benefits. The problem with this is that when hyperinflation kicks in it will be that much worse.......

I watch the Dollar Index each week.... I watched everyday in May when we were touching 2008 levels...

Link for those that don't have it - DOLLAR INDEX SPOT (DXY:IND) Index Performance - Bloomberg

Keep prepping because when the dollar goes SWHTF.

Cheers

IndyPrepper

 

[ATOMonkey]

I don't think we'll see much if any benefit from additional QE dollars.

The last 2 rounds were given with specific instructions to keep velocity low, so they never intended for it to act like "stimulus" anyway. It was just to add liquidity to banks that were marginal on stress tests.

If any of that makes it into circulation, we'll be extra boned. It's bad enough that money is making it into the bond market.

I have shares in PIMCO, and it was pretty shocking when the largest bond player in the world dumped US bonds.

 

[ArmedProgrammer]

Watch for the McTwist next. They won't call it QE3. They will start playing longer bond maturities against shorter ones... The yield curve will flatten. This stunt with oil today is another indication that Fed has little in the way of effective weaponry left.

ATOMonkey is right - say what you want about PIMCO - they are the world's largest bond fund. And Bill Gross and Mohammed El Erian are no idiots. When they dump US bonds - it's wise to take note.

 

[Leadeye]

QE3 coming to your election year soon! Don't miss it!