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QE3 And Bernanke's Folly - Part I
Street Talk Live ^ | September 13, 2012 | Lance Roberts

Posted on 09/14/2012 7:18:30 PM PDT by stickandrudder

Earlier this year, as the markets were expecting QE3 from one Fed meeting to the next, I was stating another program would not come until September after data for Q2 GDP could be analyzed. However, as we moved into August, and the markets were rallying strongly on "hope" of further balance sheet expansion programs, I moved my estimates out until the end of the year. The reasoning, as I stated, was under the assumption that Bernanke would save his limited ammo for a weaker market/economic environment. Clearly I was wrong.

Much to my surprise, and against all of what seemed logical, Bernanke launched an open ended mortgage backed securities bond buying program for $40 billion a month "until employment begins to show recovery." That key statement is what this entire program hinges on. The focus of the Fed has now shifted away from a concern on inflation to an all out war on employment and ultimately the economy. However, will buying mortgage backed bonds promote real employment, and ultimately economic, growth. Furthermore, will this program continue to support the nascent housing recovery?...more at web site...

(Excerpt) Read more at streettalklive.com ...


TOPICS: Business/Economy; Education; Reference
KEYWORDS:

1 posted on 09/14/2012 7:18:32 PM PDT by stickandrudder
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To: stickandrudder

Romney said it was a bad idea.

Was a temporary ‘sugar rush’ for the gullible to create a short term bump to help Obama.

Directly resulted in the credit downgrade.


2 posted on 09/14/2012 7:21:50 PM PDT by TigerClaws
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To: TigerClaws; stickandrudder
Was a temporary ‘sugar rush’ for the gullible to create a short term bump to help Obama.

Actually, there might be a more simple explanation.

We might be so screwed that The Bernank HAD to do QE 3 or watch an immediate implosion.

That would be really, really bad.

3 posted on 09/14/2012 7:32:19 PM PDT by kiryandil (turning Americans into felons, one obnoxious drunk at a time (Zero Tolerance!!!))
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To: stickandrudder

I wrote the Fed today, told them to stop the printing presses. Think they’ll listen?


4 posted on 09/14/2012 7:33:46 PM PDT by GreatRoad (O < 0)
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To: stickandrudder

This just proves that Obama’s economic policies have been a failure.


5 posted on 09/14/2012 7:47:20 PM PDT by Parley Baer
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To: kiryandil

Rush kind of alluded to that today


6 posted on 09/14/2012 7:50:20 PM PDT by goodnesswins (What has happened to America?)
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To: kiryandil

>We might be so screwed that The Bernank HAD to do QE 3 or >watch an immediate implosion

We are watching a coordinated plan of ratcheting down the relative values of currencies. If he didn’t do this the dollar would be too strong against the euro, and US companies would pay the price in reduced sales.

The only plan they have is to devalue currencies so that banks holding toxic assets and homeowners under water are
eventually made whole. At the expense of those on fixed incomes and those holding dollars and euoros. Of course the
down side is that energy prices will continue to rise which
is a major factor in holding back the economy.


7 posted on 09/14/2012 8:04:02 PM PDT by jonose
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To: stickandrudder

Well, let’s see. First there was QE1 and that didn’t work; then there was QE2 and that didn’t work; then there was Twist and that didn’t work; then there was ZIRP sprinkled in and of course that didn’t work. So Brilliant Ben has come up with QE3 and he thinks that will work .... I assume you have to be mentally challenged to become Fed. Chairman.


8 posted on 09/14/2012 8:22:05 PM PDT by RetiredTexasVet (Skittle pooping unicorns are more common than progressives with honor & integrity.)
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To: RetiredTexasVet
Higher prices at the grocery store and for gas.

That is what happens now

9 posted on 09/14/2012 9:26:35 PM PDT by scooby321 (AMS)
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To: stickandrudder

Bernanke and the other FED leaders are traitors.


10 posted on 09/14/2012 9:27:40 PM PDT by A Strict Constructionist (We're an Oligrachy...Resistance to tyrants is obedience to God. Thomas Jefferson)
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To: jonose

“The only plan they have is to devalue currencies so that banks holding toxic assets and homeowners under water are
eventually made whole.”

I’m at the point I want to see Bank Presidents and Goldman execs jumping from the top of their buildings...it is time they pay for their sins. We need to completely rewrite the rules for WS. Paper tigers need to burn instead of the people on fixed income. It is a shill game like Vegas.


11 posted on 09/14/2012 9:32:13 PM PDT by A Strict Constructionist (We're an Oligrachy...Resistance to tyrants is obedience to God. Thomas Jefferson)
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To: kiryandil

You put off the immediate explosion if you can because an immediate explosion would harm the kenyan’s chances for re-election. The explosion will happen.Bernanke and everyone else knows it will happen. They feel they must put it off till after the election because after the election it doesn’t matter to them any more. They are set in concrete then with their NDAA and EOs and all the new enforcement capability in the Healthcare abomination.


12 posted on 09/15/2012 5:51:41 AM PDT by arthurus (Read Hazlitt's Economics In One Lesson)
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