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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?


To: carranza2 who wrote (36533)3/23/2011 5:27:03 PM
From: Giordano Bruno2 Recommendations  Read Replies (1) | Respond to of 71406
 
If a QE3 rumor furthers his cause the Bernank will use it.



To: carranza2 who wrote (36533)3/23/2011 6:20:50 PM
From: ggersh  Respond to of 71406
 
Exactly, why make loans, that's boring.

If I were The Bernank, I would think that more QE is not productive given what has happened with the dough. Most of its fruits are sitting in bank reserves, making low risk money for banks.



To: carranza2 who wrote (36533)3/23/2011 6:36:27 PM
From: 8bits  Respond to of 71406
 
I thought it was coming too, certainteed.
I am not so sure anymore.
Velocity is not picking up.
The banks are simply increasing their reserves.


Given the criticism over rising commodity prices (especially food and oil..) I would think that the Fed, if they were initiate QE3 would give a pause between QE2 and QE3 for 6 months allowing prices to drop so that they could be given an excuse to prime the pump again. Also there is the election cycle.. pause for 6 months and start again in time so that the home team has an advantage as the economy is recovering.
(Such as it were...)



To: carranza2 who wrote (36533)3/23/2011 7:03:34 PM
From: stomper  Respond to of 71406
 
I don't agree that he was looking to stimulate the economy...I think he got the exact result he wanted.

I do agree he may pause on the QE3 though. That is going to be the last best chance for PM purchases.