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Us Federal Reserve To Press On With Qe2 Stimulus Plan

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http://www.bbc.co.uk/news/business-12116223

The Federal Reserve will continue with its $600bn (£385bn) stimulus programme as it is not convinced by recent signs of a strengthening recovery in the US economy, meeting notes have revealed.

The Fed acknowledged the improving outlook, but said the programme - dubbed QE2 - would continue.

There had been some speculation that the Fed might scale back its stimulus measures given improved economic data.

Factory order figures, also released on Tuesday, showed a return to growth.

The commerce department said orders rose 0.7% in November, following a decline in October.

QE2 is the second round of quantative easing, the policy of creating money to pump into the economy to stimulate growth.

http://www.bbc.co.uk/news/business-12115894

US carmakers have reported strong sales for December, confirming the auto industry's steady recovery during 2010.

Chrysler said sales for the month rose by 16% against a year earlier, while General Motors posted sales growth of 7.5%. Ford said sales rose by 7%.

Japan's Nissan fared even better, reporting US sales growth of 28%.

Most major carmakers reporting sales figures on Tuesday also posted strong rises in sales for the full year 2010 compared with the previous year.

Ford reported a jump of 19%, Chrysler an increase of 16%, while GM posted a rise of 6%.

Must fuel the recovery even more.....

More funny money required to pump prime the economy further. The irony that people might be spending the money before it's made worthless appears to be lost.

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The sooner the QE2 money is blown the sooner QE3 can set sail...

Still at least there is nothing to worry about here, just the worlds reserve currency and the biggest economy in the world going up in smoke.

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http://www.bbc.co.uk/news/business-12116223

http://www.bbc.co.uk/news/business-12115894

Must fuel the recovery even more.....

More funny money required to pump prime the economy further. The irony that people might be spending the money before it's made worthless appears to be lost.

Lol, both articles written on the premise that its output levels rather than asset prices being targeted.

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except that most of the GM "improvements" have been through the stocking of excess production into dealerships.

Zero hedge had an article..extended beyond this extract, about the news of GM's "success" (their emphasis)

The uberbullish take home message from the report: "General Motors dealers reported 223,932 total sales in December, a 16-percent increase from a year ago for the company’s four brands. The gain was driven by solid retail sales which were 27 percent higher than a strong December a year ago. For the calendar year, total sales for GM’s four brands increased 21 percent to 2,202,927, while retail sales rose 16 percent for the year. GM’s four brands sold 118,435 more vehicles this year than the company did with eight brands in 2009, and will gain total and retail market share for the year." And on the surface this is pretty: after all the comparison is between a number of 193,824 from a year ago, and 223,932 as of December. But shouldn't the comparison actually be between 385,000 and 511,000? These are the numbers that show what GM's dealer inventory was for the months of December 2009 and 2010. In other words, there was an increase of 30k in sales... accompanied by a 125k increase in "stuffed" vehicles held at dealers. Does anyone still have that AOL case study handy somewhere?

Edited by Bloo Loo

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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