[Wyatt's Torch]

Okay let’s think about this. the premise is that QE-Infinity is designed to help Obama’s reelection. Yet it’s mid-September and the fed said it would buy $40Billion in MBS’s per month. Before the election you are looking at $80 Billion. QE1 and QE2 were both $600 Billion in UST purchases. The $80 Billion is a mere 13% of the former QE programs isn’t going to make any difference in a $13 Trillion economy and over $10 Trillion in M2.

Once again, Bernanke is a student of the Great Depression. His doctoral work shows that the Fed’s tightening in 1936-37 that tripped off the 1937 recession. He is doing QE-Infinity in order to signal to the market that he will supply whatever liquidity necessary to the market. This doesn’t have to do with politics.

[xzins]

Each QE so far has been followed by an upsurge in the stock market. As of this morning, it appears that trend will continue.

Just in time for the election there will be a falsely buoyant market.

[frogjerk]

Once again, Bernanke is a student of the Great Depression. His doctoral work shows that the Fed’s tightening in 1936-37 that tripped off the 1937 recession. He is doing QE-Infinity in order to signal to the market that he will supply whatever liquidity necessary to the market. This doesn’t have to do with politics.

Don't pundits and politicians running for office often look to the DOW to tell the voters how our economy is doing? What has just the announcement of QE3 done to the markets? That's not pure politics?