Somewhere in between derivatives and HFT, who knows. Things
definitely look quite bubbly in "risk" after QE2, but
I have no clue if the total notional amounts are growing
like they did before 2008. The tentative answer is - probably
NOT, because of regulation and despite all the printing.
Again, despite all the news about "bonuses", WS is struggling.
A bit less than the broad economy, I admit, but things are
nowhere near as rosy as they were in bubbly 2007.
Then my tentative scenario for the future is - shortly
after QE2 stops, the market will crumble, with a few possible
nanosecond-long plunges. Then again, if that happens, there
will be QE3, or, also quite likely, QE2 will never stop.
Who knows what choice the Fed makes between these 2
scenarios, and I sure don't. However, I tend to think
that QE2 will, in fact, end in June this year, then the
Fed will pause, adopting "wait and see" attitude. They
will resume printing after the market crumbles, either
through their "infinite printing provisions" in QE2 or
through QE3 -g- |
