Q E 3 Is Already In The Planning Stage

[Realistbear]

http://finance.yahoo.com/news/As-Markets-Soar-Theyre-cnbc-680186283.html?x=0&sec=topStories&pos=4&asset=&ccode=

As Markets Soar, They're Already Talking About QE3

.

On Thursday November 4, 2010, 2:02 pm EDT

Now that the Federal Reserve has crossed the Rubicon into its next round of monetary stimulus, the only question for investors Thursday seemed to be what's next.

Markets reacted jubilantly to the Wednesday announcement that the Fed would be adding another $600 billion to its $2.3 trillion balance sheet. Stocks in both US and foreign markets soared as did commodities, while Treasury prices, particularly in the five- and 10-year notes, also jumped.

The action was all a result of what the Fed calls quantitative easing, a process in which the central bank designates a quantity of assets it will buy which hopefully eases credit conditions through lower rates. The program is known as QE, with the second round called QE2.

So with QE2 out of the way and the market ready to ride the Fed's momentum, talk immediately switched to when the economy will see future QE implementations that some market pros think are little more than an inevitability.

"They're already talking about QE3," said Dave Rovelli, managing director of US equity trading for Canaccord Adams. "Eventually we're going to be printing so much money the dollar is going to really go down and everybody's going to try to deflate their currency against us. I just don't know how this could end well."

For the time being, though, concerns about inflation were out of investors' heads as speculation grew rampant that the Fed has sent an unmistakable signal that it stands at the ready with as much easing as needed to restart the economy.

Unemployment at 9.6 percent and a staggering housing market have mired the economy even as stocks and commodities have soared. The Fed is left to find ways to generate real growth that supports the asset gains.

"It is easy to envisage QE2 giving way to QE3, QE4 and beyond because now that the Fed has started down this road again, it will be very hard to stop unless there are clear signs of improvement in this economy," Paul Ashworth, senior US economist for Capital Economics in Toronto, said in a research note.

They can issue QE ad infinitum but they will not beat the market. Bernanke needs to take a leaf outr of Grodon book and see the mistake our former PM made when he ethought he could deliminate the business cycle. Cycles include periods of inflation as well as deflation. Bernanke just needs to give into the laws of economics and go Japanese for a long enough period to clear the bubbles and imbalances out.

[cashinmattress]

Good news for the holders of physical gold and silver, as if you didn't know that already.

[interestrateripoff]

The magic printing press will not be turned off until they are forced to do so at gun point.

Once drug of free money has you hooked the junkie wants more and more.

Printy printy.

[endgame]

Good news for the holders of physical gold and silver, as if you didn't know that already.

Yes, it would be nice if he admitted he got it totally wrong and appologise to those he misled. $300 gold was it?

[cashinmattress]

Yes, it would be nice if he admitted he got it totally wrong and appologise to those he misled. $300 gold was it?

Anyone who takes the singular advice of some random, faceless person on a BB or chat site deserves to be fleeced.

[Realistbear]

Interesting times ahead. Anyone care to try to predict where stocks, bonds, commodities will be in 3 months time?

What surprises me is the "good news" about our economy that the exoperts are spouting. Its as if the Brown years just dissappeared along with the 5TR debt and the most overinflated housing market still left standing.

I doubt anyone will want to try to predict where anything will be as this 300 year cycle unwinds. I just cannot see the Fed winning this one as deflation is a more powerful force than inflation as the Japs have discovered.

Edited November 4, 2010 by Realistbear

[endgame]

Anyone who takes the singular advice of some random, faceless person on a BB or chat site deserves to be fleeced.

Yes, but there was quite a few of them. Personally I thank Goldfinger, cgnao, and others for helping me understand the point of precious metals even though many here mocked them. Ha, look who's laughing now!!

[Scott Sando]

http://finance.yahoo.com/news/As-Markets-Soar-Theyre-cnbc-680186283.html?x=0&sec=topStories&pos=4&asset=&ccode=

As Markets Soar, They're Already Talking About QE3

.

On Thursday November 4, 2010, 2:02 pm EDT

Now that the Federal Reserve has crossed the Rubicon into its next round of monetary stimulus, the only question for investors Thursday seemed to be what's next.

Markets reacted jubilantly to the Wednesday announcement that the Fed would be adding another $600 billion to its $2.3 trillion balance sheet. Stocks in both US and foreign markets soared as did commodities, while Treasury prices, particularly in the five- and 10-year notes, also jumped.

The action was all a result of what the Fed calls quantitative easing, a process in which the central bank designates a quantity of assets it will buy which hopefully eases credit conditions through lower rates. The program is known as QE, with the second round called QE2.

So with QE2 out of the way and the market ready to ride the Fed's momentum, talk immediately switched to when the economy will see future QE implementations that some market pros think are little more than an inevitability.

"They're already talking about QE3," said Dave Rovelli, managing director of US equity trading for Canaccord Adams. "Eventually we're going to be printing so much money the dollar is going to really go down and everybody's going to try to deflate their currency against us. I just don't know how this could end well."

For the time being, though, concerns about inflation were out of investors' heads as speculation grew rampant that the Fed has sent an unmistakable signal that it stands at the ready with as much easing as needed to restart the economy.

Unemployment at 9.6 percent and a staggering housing market have mired the economy even as stocks and commodities have soared. The Fed is left to find ways to generate real growth that supports the asset gains.

"It is easy to envisage QE2 giving way to QE3, QE4 and beyond because now that the Fed has started down this road again, it will be very hard to stop unless there are clear signs of improvement in this economy," Paul Ashworth, senior US economist for Capital Economics in Toronto, said in a research note.

They can issue QE ad infinitum but they will not beat the market. Bernanke needs to take a leaf outr of Grodon book and see the mistake our former PM made when he ethought he could deliminate the business cycle. Cycles include periods of inflation as well as deflation. Bernanke just needs to give into the laws of economics and go Japanese for a long enough period to clear the bubbles and imbalances out.

Have you seen the market, inflation is ripping it to pieces, and all the talking heads are laughing about it like its a good thing for people. They wern't talking about inflation like this two days ago, the psychology has changed now!

[Realistbear]

Anyone who takes the singular advice of some random, faceless person on a BB or chat site deserves to be fleeced.

I totally agree. 33,287 forecasts were made on this site in the last 12 months and I suspect more than 70% will prove to be incorrect. Some might have got 3 out of 4 forecasts* right but some may have only hit 50%--some much worse.

I think it would be a shame if no one could have an opinion on forums as it would make it so much less fun.

________________________

*

Edited November 4, 2010 by Realistbear

[Scott Sando]

I totally agree. 33,287 forecasts were made on this site in the last 12 months and I suspect more than 70% will prove to be incorrect. Some might have got 3 out of 4 forecasts* right but some may have only hit 50%--some much worse.

I think it would be a shame if no one could have an opinion on forums as it would make it so much less fun.

Your right, we need opinions

________________________

*

[mattyboy1973]

I totally agree. 33,287 forecasts were made on this site in the last 12 months

24,000 of them by you. Please - stop.

[boynamedsue]

Yes, but there was quite a few of them. Personally I thank Goldfinger, cgnao, and others for helping me understand the point of precious metals even though many here mocked them. Ha, look who's laughing now!!

I'd just like to point out that, although the Fed is taking measures to devalue the currency (whether they succeed or not will be interesting to see), precious metals are caught in a speculative bubble, and we all know what happens to those....

What's that Flipper? It's different this time?

Edited November 5, 2010 by boynamedsue

[mattyboy1973]

I'd just like to point out that, although the Fed is taking measures to devalue the currency (whether they succeed or not will be interesting to see), precious metals are caught in a speculative bubble, and we all know what happens to those....

What's that Flipper? It's different this time?

please show your analysis

[Bloo Loo]

24,000 of them by you. Please - stop.

the pointless threads on "what is the Halifax index going to be" are very popular.