Don't expect QE3
Investors hope to see a third round of quantitative easing, but the economy is growing strongly enough without it.
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We don't need QE3, the monetary policy is fine, we've got low interest rates until mid-2013 and plenty of liquidity. What we need is for the US Congress to reform entitlements, raise age one month a year for 24 years and raise FICA taxes .5% for employee and employer, and adjust spending downward and eliminate tax loopholes so that rates can be lowered 1% and eliminate corporate tax rate and tax capital gains and dividends as regular income. Let the Bush tax cuts expire in 2013.
If they want to do something to boost consumer spending,bring in fed tax dollars and give this economy a shot in the arm then GET A GRIP ON GAS PRICES! Every gallon sold brings in 18-25 cents fed taxes and gives everyone a break to spend elsewhere. High fuel prices has done more damage than anything else and they won't do a thing about it other than watch them gouge the public and point a finger at every other reason they can think off.
Everyone knows that QE is very bad for the economy and rasies inflation, but what you guys dont understand, is that the FED WANTS to ruin our economy, they and the banksters want to collapse the dollar on purpose to create a New World Currency and new World Order.
THERE WILL BE A QE3, weather annouced tommarow, or next year, or under another name, but there will be a QE3. Mark my words, and prepare for the worst.
This country does not need QE3. The last thing we need now is to help the banksters and hurt the people in this country with QE3.....with higher fuel and food prices. The manipulation of the market by Bernanke needs to stop and he needs to stay out of the limelight and political arena.
If the Fed did actively buy the stock market to try and put a floor under it, we can assume three things:
1) The Fed is becoming truly desperate
2) The Fed realizes QE isn’t helping
3) QE 3, if it arrives, will be coming later down the line
It was just a couple of weeks ago that Bernanke gave his previous speech where the pundits were falling all over themselves because he made a clear statement about keeping interest rates low for the next two years.
Of course, what I never heard "anybody" mention was the fact that low doesn't mean the Fed won't raise rates. The Fed could raise rates more than a few times and they would still be "exceptionally low". But, everyone seemed to read into Bernanke's statement that exceptionally low actually meant no raises at all. I think that may well prove to be a false assumption.
Everyone was amazed in Bernanke's last speech as to the fact that he basically spoke in plain English, where everyone pretty much understood what he meant. Today, with so much pleasure on him to say some magical words, my guess is that, instead of making clear concise statements that the markets can understand and react to, he'll revert to the usual Government double speak gobblety goop that takes a crystal ball, ouija board, and a couple of slightly used ebay voodoo dolls to decipher.
I hope I'm wrong about that.
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