U.S. Futures Gain Ahead Of Open (QE3?)

TBI ^ | 8-22-2011 | Mamta Badkar

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U.S. Futures Gain Ahead Of Open

Mamta Badkar
Aug. 22, 2011, 8:27 AM

U.S. markets indicate a higher open on expectations that the Federal Reserve will announce another round of quantitative easing.

Futures on the Dow Jones Industrial Average rose 134 points to 10954, the S&P 500 rose 16 points to 1140, while Nasdaq 100 futures added 33.80 points to 2074.80.

Moving closer to the opening bell, the Dow is lower than the 148 it had added earlier this morning.

Here's the volatility in the Dow over the past two weeks:

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Traders Speculating (Praying) That Bernanke Will Announce New Stimulus Scheme This Week In Jackson Hole

[onyx]

I watched the over night foreign markets and gold and platinum go neck and neck to $1895 and $1896 respectively.

[Ghost of Philip Marlowe]

As I said after the first major correction a couple of weeks back...I wouldn’t be surprised if it was a controlled fall in order to force people to demand that Obammie the Commie use that new debt ceiling to pump money into the markets via QE3.

Folks, the fundamentals suck. There is no denying it to anyone who is following what is happening.

Another round of “stimu-less” will spike the markets for a very brief time. After that, look out for free-fall, because we’ve reached the wall in terms of borrow-and spend.

Also, protect your private-retirement accounts.

The governments are going to contract their benefits to the public-sector unions, and in some cases default completely. There will be a round of Greece-style austerity and similar violence in reaction.

After that has occurred and the economy still sucks, Obammie and his Commies WILL come after your private retirement. They will nationalize it to save the unions, their pay and pension and benefits, and they will promise you a higher rate of return when you go to cash it out.

DON’T BELIEVE THEM.

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Why The Current Bear Market Is Far From Over

"We, therefore, believe that the market has now entered a major downtrend. It is a mistake to dismiss the slide we’ve seen to date as mindless and devoid of fundamentals as many strategists maintain. These are not just scary headlines—-they are scary fundamentals."

[econjack]

I don't get it. QE1 was, perhaps, necessary to save the banks during the financial crisis. QE2 has done nothing to get money back into real investment. Banks have been going to the window, borrowing at the federal funds rate of near zero, taking those funds and buying Treasuries, and are happy with the relatively riskless differential return. QE3?? All it can hope to do is more of QE2 with no discernible effect on real growth. This is a classical Keynesian Liquidity Trap and fiscal policy of personal and corporate tax cuts are needed, not more gov't spending or tax increases. Come on, Obozo, this isn't rocket science.

[WhistlingPastTheGraveyard]

Just the market reacting to Libya as if it means something. We’ll be back in the red tomorrow.

[fso301]

Futures would be gaining based on a belief that Quadaffi is about to go and that Lybian oil will once again flow to European ports.

[Aevery_Freeman]

You are speaking to an affirmative-action anointed know-nothing - to him this is rocket surgery. He is only able to conceptualize what he was taught as a child - black good, white bad. Beyond that he is devoid of intellect. He is, as you say, dumber than soup.

The "Peter Principle" in black and white.

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The DJIA opens up 193.

[B.O. Plenty]

Mike in East Texas.... said last night that the only thing that the Bernak can do now to keep the market up is QE3... if he can do it...but that will only "kick the can down the road" a little farther.

Bernanke may not even be able to do QE3 since there are 3 Fed members who have already voted against him...one more against QE3, and the Bernak will not be able to do anything to prop up the market.

It is a mess...Obama and his merry band of gay blades are a hard headed bunch of bastards...fitting the very definition of insanity...

...doing the same thing over and over but expecting a different result....

..if Zer0 comes back from his "well deserved vacation" (choke)...and gives the same old tax and spend, class warfare speech for his "jobs creation plan".....watch out....-(minus)400 points may just be a good day for the market.

[Hojczyk]

QE 3...higher prices for everything and a sinking dollar....then a sinking stock market....watch out

[Jane Long]

Agree.

Also, protect your private-retirement accounts.

Any suggestions?

[jjsheridan5]

FWIW

I talked to an acquaintance of mine last night. He used to be a bond trader and "retired" to do currency trading on his own. I have no reason to disbelieve him. I thought I was bearish. According to him, there are quite a lot of professional traders who know that this ship is going down (still a minority of traders, but not a small fringe). His advice was cash in the short run (better than most alternatives). For longer term, arable land and PMs (especially gold). Not as an investment, but as a way to hold some value as everything crashes.

His other point was that this is different than other economic crises, in that you can't expect equities and other investments to return in any reasonable time frame. People who tie their wealth to equities and real estate, thinking that they will do well in the long run, are going to get wiped out.

As I said, take it FWIW. The scenario he laid out was quite chilling. No country will be safe, and when global trade comes to a halt, the disruptions will be extreme. He also said to watch the USDA, for hints about when things are about to really collapse, but I didn't follow this too well.

[Ghost of Philip Marlowe]

The powers behind what is happening are not stupid. They are causing what is happening deliberately because it is time for America to cease being the economic super power. The central bankers of the world (of which the Fed Res. is a member) have pumped America up for decades, making profits on the booms and the busts, and now is the perfect time to pull the rug out from America.

The grand effect?

America will be forced to abandon the US dollar and to sign on to a world currency controlled by a globalized central bank.

There are other options, such as complete economic and financial Armageddon before we get to the point of the global organization. I don’t doubt that the powers behind this would like to reduce the world’s population by several billion before they try to take over.

[Ghost of Philip Marlowe]

Get out of the equities markets (Dow, S&P). As long as things are all right, food production may be a good investment, but I’d worry less about reaping a profit than I would just trying to maintain the purchasing power of the money I’ve earned.

If you switch out of the markets, put your 401Ks into some sort of liquidity like Fidelity cash reserves. They earn nothing but every dollar you put in is backed by a dollar of capital, so you have no real fear of losing what you put in. It just sits there. If and when they it starts looking like they are going to nationalize the private-retirement accounts, cash out, pay the penalty and taxes (that quick windfall would be part of their desired goal), keep some cash for as long as it has any purchasing power, and with the rest of it, purchase the goods you’ll need to survive. Don’t invest in ETF gold (paper gold or futures) with no physical delivery, if you invest in precious metals. Only purchase that which is delivered so you have it on-hand. Storable food, seeds, guns, ammo, water purification, reliable transportation, backup fuel.

If you have enough money and you are near an urban center, purchase a retreat in a small town a couple of hundred miles away and stock it.

My tag line has not changed in quite a while.

[Jane Long]

Thanks, and agree.