From The Daily Capitalist:
... There are two factors which lead me to believe that it is more likely that we will see more quantitative easing (QE).
While Shostak concludes that the Fed is wary of price inflation (that they are causing) and that this will deter another round of money pumping, I think the primary motivation behind QE is unemployment, not price inflation.
The consequence of taking their foot off the money pedal will lead to higher unemployment and I do not think this is politically acceptable to the Fed or to the Administration. I think they will institute a new round of quantitative easing (QE3) because politicians will demand that the Fed "do something."
Which is, of course, the worst thing they could do. It will lead to...
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More Cruxallaneous:
This should scare everyone in America
Pimco's El-Erian: "Financial repression" coming to the U.S. soon
Master contrarian Jim Grant: "There will be a panic and it'll seem as if the world's ending..."
View the original article here
Showing posts with label QE 2. Show all posts
Showing posts with label QE 2. Show all posts
Monday, May 23, 2011
Saturday, November 20, 2010
The Fed just confirmed that "QE2" is nothing more than a secret bank bailout
From Pragmatic Capitalism: I've been assuming since day one (since there was no other logical explanation for QE aside from the fact that it can clean up bank balance sheets) that QE2 was a bank bailout and not a Main Street rescue plan and it now looks like Ben Bernanke and the Fed are (at least partially) confirming this. They are concerned about the capital positions of the nations largest banks.
The WSJ reports:
"The Federal Reserve will...
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More on the banks:
Top risk analyst: It's time to prepare for the next bank crisis
New banking rules could drive emerging markets even higher
Euro CRISIS: Plans for a European "bank mutiny" are picking up steam
View the original article here
The WSJ reports:
"The Federal Reserve will...
Read full article...
More on the banks:
Top risk analyst: It's time to prepare for the next bank crisis
New banking rules could drive emerging markets even higher
Euro CRISIS: Plans for a European "bank mutiny" are picking up steam
View the original article here
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