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[andiron]

FED states that inflation is lower than their mandate...So wants to queue-E ...But 1. Buying bonds, per se, lowers rates... 2. Buying bonds may lower currency's exchange rates if and only of major currencies are willing to go higher...But we have seen CBs are ready to prevent that so not to jeopardize their growth prospects... So fed's tinkering is delaying asset price adjustments (where market thinks they ought to be) and delaying recovery in process/// Now that FED is a bit spooked what w/ rampant commodity/emerging/US junk bond bubble, it is saying we may do peace-meal QE... Wall street wants govt intervention when its bonuses go up...otherwise it wants no intervention...bunch of lowlifes// Global asset prices are not in sync w/ fundamentals...(not just US asset prices)..Debt dafaults, high cost of credit and anemic global growth is what ahead////

Edited by andiron, 28 September 2010 - 08:00 AM.