With gas pushing $4, I think it's possible...
Plosser will be on Squak tomorow, might give us some clues...
QE3 is out...
I think the dual mandate needs to be seriously looked at, the Fed should be focusing on inflation and keeping it at an appropriate level...
Will Ben end QE2 Early???
Started by
MikeyG
, Feb 24 2011 12:01 PM
19 replies to this topic
#2
arbman
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Posted 24 February 2011 - 12:09 PM
He may choose to reduce the monthly injections, but not reduce the total amount, so make the QE 2 last longer.
I think it would be appropriate and balanced...
The market needs the Fed support, but the market should not be pushed artificially, but rather supported from here.
I think the market is trying to price something like that...
Just my 2 cents.
I think it would be appropriate and balanced...
The market needs the Fed support, but the market should not be pushed artificially, but rather supported from here.
I think the market is trying to price something like that...
Just my 2 cents.
#3
q4wer
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Posted 24 February 2011 - 12:21 PM
Inflation is what fed wants, oil is $4.00. stock price should be expensive too
and eventually get the house price back up ... today's 1 million dollar house is just 500k a few years ago, but that make people happen b/c price is back to their purchase price ~~
What else can resolve the economical mess?
#4
MikeyG
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Posted 24 February 2011 - 12:30 PM
Inflation is what fed wants, oil is $4.00. stock price should be expensive too
and eventually get the house price back up ... today's 1 million dollar house is just 500k a few years ago, but that make people happen b/c price is back to their purchase price ~~
What else can resolve the economical mess?
The idea was to boost stock prices so maybe some business owners would hire some people...
It didn't work, now we are just left with high gas and food prices...
Edited by MikeyG, 24 February 2011 - 12:30 PM.
#5
IndexTrader
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Posted 24 February 2011 - 12:52 PM
With gas pushing $4, I think it's possible...
Plosser will be on Squak tomorow, might give us some clues...
QE3 is out...
I think the dual mandate needs to be seriously looked at, the Fed should be focusing on inflation and keeping it at an appropriate level...
I don't expect the Fed to focus on inflation at all with unemployment where it is.
IT
#6
arbman
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Posted 24 February 2011 - 12:53 PM
The structural unemployment is here to stay until the next growth wave in GDP emerges around 6%. Fed is trying to offset the lack in GDP with inflation at the moment to absorb the speculative losses before it takes the whole house down. He thinks that when the secular growth in the GDP returns, the inflation will be also worked out with the growth in people's income. His time horizon in doing all these must be as much as 5-10 years. I can see them failing at least one more time as the deflation waves from China and Europe are now closing in as the growth in US is saturating and I don't think they can just inflate beyond 2011, we should see one more devastating bear market... Fed bubble may pop!
#7
q4wer
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Posted 24 February 2011 - 01:10 PM
all the mess has to be fixed with a new bubble. If we contain inflation, the bubbles all burst.
FED's QE will be fine with a real good inflation. stock market is "expensive", everything is expensive, drag the economy out of the wood ~~
the good support is tech companies are mostly doing very well. semi's and even Dell is seeing growth now~
plus, presidential year, need to polish everything.
#8
entre
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Posted 24 February 2011 - 01:25 PM
Bernanke targets stock prices first and foremost.
The weaker stocks are, the less likely he'll cut QE2 short.
#9
Islander
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Posted 24 February 2011 - 01:43 PM
What makes anyone think BB targets anything but staying alive?
His goalless behavior is the curx of our problems. When debt payments > tax revenues the credibility of the dollar = 0. Own PM to some degree.
Islander
#10
andiron
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Posted 24 February 2011 - 01:59 PM
w/out increasing wages, inflation cannot grip...
folks should know this by now...
