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Why QE2 will continue

PostPosted: Sat May 21, 2011 7:37 am
by Lemon Thrower
Fed has made hints that QE2 is ending.

here are some arguments that says it will continue. in summary, QE2 keeps long rates down and Uncle Sam can't afford a tick up in rates.

http://video.cnbc.com/gallery/?video=1937291737#eyJ2aWQiOiIxOTM3MjY5ODkwIiwiZW5jVmlkIjoiRmJHZWZhZm45ZUZBMUNQOTVDZ284dz09IiwidlRhYiI6ImluZm8iLCJ2UGFnZSI6IiIsImdOYXYiOlsiwqBMYXRlc3QgVmlkZW8iXSwiZ1NlY3QiOiJBTEwiLCJnUGFnZSI6IjEiLCJzeW0iOiIiLCJzZWFyY2giOiIifQ==

Re: Why QE2 will continue

PostPosted: Mon May 23, 2011 10:21 pm
by theo
What gets me is that Bernake acts like he can turn off QE anytime he chooses. But in reality the Fed has to buy the lion's of the newly issued bonds to keep the auctions from failing and interest rates from exploding. We are truly on the tiger's back.

Re: Why QE2 will continue

PostPosted: Mon May 30, 2011 5:42 pm
by shinnosuke
theo wrote:What gets me is that Bernake acts like he can turn off QE anytime he chooses. But in reality the Fed has to buy the lion's of the newly issued bonds to keep the auctions from failing and interest rates from exploding. We are truly on the tiger's back.


Since your post mentions lions and tigers, I will add only that the bears will eat us alive when all the Fed tinkering is exposed for what it is.

Re: Why QE2 will continue

PostPosted: Wed Jun 01, 2011 11:24 pm
by avidbrandy
I see what you did there.