interestrateripoff Posted August 3, 2011 Share Posted August 3, 2011 http://www.zerohedge.com/news/hilsenrath-feds-kohn-says-will-give-very-serious-consideration-qe3 As always happens, about a week after Goldman telegraphs the need for QE3, which they did last Friday, the WSJ's Fed mouthpiece Jon Hilsenrath reaches out to the media and proceeds to give the secret QE handshake. Now in its third iteration. In an "exclusive" interview with the Fed's last tree monetary affairs committee, Donald Kohn, Vince Reinhart and Brian Matigan, Hilsenrath observes that according to these masters of the universe the chance of another recession is 20-40%, which we are confident is a given at 100%, but more importantly, he quotes Don Kohn who "said the Fed still has some options to support the economy, but "they're kind of limited." He said he expects the central bank, which holds a policy meeting Aug. 9, to wait and see whether the recovery is really losing steam before taking any action. If that's the case--and inflation is coming down--then he would give "very serious consideration" to a new round of bond purchases, he said." Well, the 30 Year is at 2011 lows, TIPS are screeching, and stocks are plunging: all indications that the market anticipates deflation. Looks like the only wildcard is whether the FOMC will determine next Tuesday that the economy has slowed down. Which it has. More printy printy, this time it will work... Quote Link to comment Share on other sites More sharing options...
Errol Posted August 3, 2011 Share Posted August 3, 2011 Recovery? What recovery? Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted August 3, 2011 Author Share Posted August 3, 2011 Recovery? What recovery? It's people like you dragging down this recovery with comments like that. Quote Link to comment Share on other sites More sharing options...
EvilEdna Posted August 3, 2011 Share Posted August 3, 2011 Fortunately it really IS different this time. I'm intrigued, please explain. Quote Link to comment Share on other sites More sharing options...
EvilEdna Posted August 3, 2011 Share Posted August 3, 2011 Err, it must be different this time as the gubermint would not be so stupid as to do something without knowing it will work. Wonder what number of QE the Japanese are on at the moment and how many the Wiemar republic has before it worked .... oh it didn't work but I am sure it really is different in our case. Ah right sorry, sense of humour bypass on my part. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted August 3, 2011 Author Share Posted August 3, 2011 Err, it must be different this time as the gubermint would not be so stupid as to do something without knowing it will work. Wonder what number of QE the Japanese are on at the moment and how many the Wiemar republic has before it worked .... oh it didn't work but I am sure it really is different in our case. Perhaps this time they've run computer models and found the flaw in the Weimar and Japanese plans etc..? I mean it's not like the UK govt has just blow around £10bn on a computer project that was never going to work.... Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.