$this->bbcode_second_pass_quote('', '[')b]Bloomberg FX Survey Reveals Skepticism on Regulations & QE3
Bloomberg / June 14, 2011
Foreign Exchange leaders polled at Bloomberg FX11 Summit ...
... Quantitative Easing - There will not be a third round of quantitative easing (QE3), said nearly two-thirds (65 percent) of those polled; while 29 percent said there would be a QE3 ...
PeakOil is You
QE3
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QE3
by bratticus » Mon 20 Jun 2011, 09:13:21
$this->bbcode_second_pass_quote('', '[')b]Third Time's a Curse: QE3 and Lehman
Bo Peng / Seeking Alpha / June 16, 2011
... Now, two weeks before the end of QE2, has it sunken in that QE3 is not coming, at least not so easily? ...
... The risk is, like the Treasury in the Lehman case, the Fed has prematurely spent its ammo. There's no political appetite unless and until there's a real disaster. I'm talking a Dow < 10,000 type of disaster, regardless of the cause. The adversity has been vividly demonstrated by the outspokenness of hawks in the Fed and the outrage stirred by Bernanke's "no cost" comment, not to mention the transitory inflation not caused by the Fed. ...
$this->bbcode_second_pass_quote('', '[')b]FORGET WHAT YOU HEARD: Nomura Explains Why There's No QE3 To Rescue You
Business Insider / June 18, 2011
Despite the growing chorus of people predicting QE3, it's still a longshot.
Nomura rates guru George Goncalves explains why the conditions that were in place last year -- when QE2 was introduced -- just aren't here this time.
- -Flation risks still seem more tilted to inflation over deflation (see the below chart).
- Based on what we've heard from various Fed-heads, there's clearly a lot of dissent internally.
- Criticism would also be much more intense from overseas, given perceived connection between QE and weak dollar/high commodities.
- According to Bernanke, what makes QE "work" is the stock of purchases, not the flow of purchases, which means technically the program doesn't end when the bond buying comes to an end.
- Despite the talk, the market does not anticipate more QE, as evidenced by weakness in "risk" assets.
$this->bbcode_second_pass_quote('', '[')b]Bernanke May Face ’Self-Induced Paralysis’
By Rich Miller / Bloomberg / June 20, 2011
... By all but ruling out another cycle of bond purchases, Fed officials have left themselves with little in the way of policy options to respond to slowing growth and rising unemployment. This raises the risk that the U.S. will remain saddled with what Bernanke himself has called a “frustratingly” sluggish recovery that leaves millions of Americans out of work.
“I worry that QE3 will be hostage to QE2,” said Vincent Reinhart, a former director of the Fed’s monetary-affairs division who is now a scholar at the American Enterprise Institute in Washington. “That may lead to that self-induced paralysis” in further easing policy to aid the economy.
Fed officials, who begin a two-day meeting tomorrow to plot monetary strategy, are betting the slowdown will prove short- lived and growth will pick up from July through December as shocks from Japan’s earthquake and an oil-price surge fade. ...
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