Posted on 08/17/2011 6:20:21 AM PDT by blam
The Odds Of Imminent QE3 Are Rapidly Plunging
Joe Weisenthal
Aug. 17, 2011, 9:09 AM
Today's PPI report -- which came in hotter than expectations -- is probably the first nail in the coffin of the idea that Ben Bernanke will announce something big when he speaks at Jackson Hole later this month.
The idea that this year would see an encore to last year was already looking unlikely.
The data has not been sufficiently deflationary enough, and the mood has changed a lot. There were three dissenters when the Fed recently announced that it would keep rates low through the middle of 2013, and move that's not even that radical.
Speaking yesterday, St. Louis Fed chief James Bullard, who has actually been quite dovish, said that the Fed had not signaled QE3 was coming in its latest report.
Bottom line; The economy and the market may still enjoy a Bernanke put, but the idea of imminent action seems unlikely unless things totally collapse.
(Excerpt) Read more at businessinsider.com ...
Maybe, but we are having a jobless and housingless recovery as this person has shown.
http://confoundedinterest.wordpress.com
“something big”?
and fast. how would they reverse 3 1/2 years of job
devolution before the election?
He’s taking a lot of heat for it, but Rick Perry may have effectively knocked this option off the table. From now on any hint of a move towards QE3 will inexorably link the words “Bernanke” and “Treason” in the minds of the electorate.
Exactly. The best part is watching the libs and media melt down, while the Perry camp gives them the finger and stands by the comments. No apologizing. It's about time some high profile politician somewhere said what needed to be said.
The side effect being, as you point out, Ber-snakey can't do QE3 without paying a price.
I guess we have to take whatever good news there is. 0% interest rates will do enough damage in the meantime.
Exactly. The best part is watching the libs and media melt down, while the Perry camp gives them the finger and stands by the comments. No apologizing. It's about time some high profile politician somewhere said what needed to be said.
The side effect being, as you point out, Ber-snakey can't do QE3 without paying a price.
Now if we only could have avoided QE1 and QE2, we wouldn't have trillions in added national debt with nothing to show for it except fattened unions and larger hordes of goblins with delusions of entitlement.
Plus with the latest consumer price numbers which came out (particularly on food) the political environment could not be more hostile.
“but Rick Perry may have effectively knocked this option off the table”
Oh, please. Perry had NOTHING to do with this. These numbers came from many months of activity, long before he even became a candidate.
“is probably the first nail in the coffin”
LOL......Rick Perry was the first nail.
QE3, is code for “printing money from thin air to get Obama re-elected”.
If there is no QE3 leaving the dock the next question is how do you fund the spending binge?
If the chicoms say no more money for our addiction the only option is the raise interest rates and that increases the budget deficit further. Nice little corner they painted themselves into.
Guaranteed Low Interest Rates for next two years is QE3 by another name.
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