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Category Archives: QE3

Where’s my spanner?

On the eve of the day where the Fed confirms it will remove the final bolt from the training wheels, it seems apropos that the stock market should be at/near all-time highs. I can hear Janet now… Mr. Fischer, please hand me the half inch spanner (wrench)….   This week’s Greedometer newsletter was just posted.    

QE: hero or bum?

  Quantitative Easing (QE) has played a major role in stopping stock market collapses -at various stages of maturity- since 2009. As such, the policy -in a personified sense- might be labelled a hero. Yet if the Fed is going to be successful in unwinding QE3 this year, QE is probably going to turn into a bum. The ending of QE1 saw the stock […] Read the rest of this entry »

The Nightmare Scenario Approaches

At 2pm today the Fed FOMC meeting posted their much-anticipated statement. Expectations were met: nothing new was communicated. The Fed plans to continue QE3 at the same pace and it gave no hint at when tapering would initiate. The same targets were reiterated: 6.5% unemployment (the U3 rate that is riddled with statistical mirages), and an inflation rate of 2% or slightly higher. I […] Read the rest of this entry »

Bernanke kicks can.

An hour ago the Fed released its widely anticipated statement regarding plans for the QE asset purchase program.  It opted to continue the existing QE program unabated. A range of outcomes were possible. A decision to continue QE without any reduction (no taper at all) is the most extreme. It means: The Fed is all-in. It’s policies over the past 25+ years have been […] Read the rest of this entry »

Will Ben do The Full Draghi?

  What will Dr. Ben Bernanke announce tomorrow? By a slim margin, let me suggest the odds favor Ben doing The Full Draghi i.e., threatens to ‘do whatever it takes’ to help the economy and job market. But no QE3. Not until after November 6th at the earliest, and potentially not ever. (let me reference my letter from summer 2011 regarding the perils in […] Read the rest of this entry »