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Post by brosin on Aug 8, 2011 20:55:47 GMT -5
Politics will prevent us from throwing the entire printing press at the problem in a big enough way to stem the tide on the scare we did in 2008
It will have to be China that throws the printing press at things to stop the bleeding over the longer term. The question is, will they?
I would guess yes, but only because they did so in 2008. If they think that they too are going to tank if the global economy does, they might have enough self-interest to do it.
Just some food for thought.
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Post by timber on Aug 8, 2011 20:58:05 GMT -5
well ben will try ...he has to now
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michelle
Margin Account Trader
Posts: 48
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Post by michelle on Aug 8, 2011 21:01:22 GMT -5
Agree with you, I can't see Bernanke saying anything about QE3 tomorrow since POMO just ended.
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Post by brosin on Aug 8, 2011 21:04:46 GMT -5
I think he may say that they are "considering" or something
Enough to get the bears at least somewhat worried that it is on the table - even if he doesn't end up doing it, would be interesting to see what the reaction would be.
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Post by maxi on Aug 8, 2011 21:06:51 GMT -5
I know the futures don't mean anything (i do not agree by the way)
But if the market had the slightest inkling that Ben would say or do anything they would not be crashing again tonight.
Whoops do or say anything that would make a difference
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Post by timber on Aug 8, 2011 21:08:11 GMT -5
i think he has to do something i posted all of his options the other day.....it may not be called qe
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michelle
Margin Account Trader
Posts: 48
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Post by michelle on Aug 8, 2011 21:09:04 GMT -5
I think he may say that they are "considering" or something I wondered if he'd repeat what he said a few weeks ago that he will provide liquidity in the markets, if needed, stopping short of committing to it. Fed announcement will be interesting. |
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Post by brosin on Aug 8, 2011 21:13:03 GMT -5
I know the futures don't mean anything (i do not agree by the way) But if the market had the slightest inkling that Ben would say or do anything they would not be crashing again tonight. Whoops do or say anything that would make a difference Yeah you could be right. According to IBD (was reading the paper on the plane on Saturday), mkt down day on Thursday was due to a rumor that one of the agencies were going to downgrade the US. I had not assumed that those types of huge news events could be leaked, so it was kind of surprising to read that. But how many times have we seen big head fakes, especially right around Fed Days. I had started losing track a bit, but I used to be the king of analyzing FOMC meetings up until the last few months. To me, they always seem to make a pivot. Interestingly enough, during the bull market they always seemed to make tops. During bear markets will they make bottoms? |
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Post by brosin on Aug 9, 2011 8:22:36 GMT -5
bump for timber...
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Post by brosin on Oct 28, 2011 10:43:38 GMT -5
Politics will prevent us from throwing the entire printing press at the problem in a big enough way to stem the tide on the scare we did in 2008 It will have to be China that throws the printing press at things to stop the bleeding over the longer term. The question is, will they? I would guess yes, but only because they did so in 2008. If they think that they too are going to tank if the global economy does, they might have enough self-interest to do it. Just some food for thought. bump for timber again ;D |
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Post by tradingdummy on Oct 28, 2011 11:51:58 GMT -5
oh wait, you guys didnt hear? The only reason that HP was going to quit the PC business, is because they will have to put all their efforts in supplying Ben with printers and ink.  |
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Post by timber on Oct 28, 2011 12:11:12 GMT -5
oh thanks brosin....china is stepping in soon ;D
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Post by timber on Oct 28, 2011 12:19:05 GMT -5
ben already stepped in with the twist....this is just more gravy for the 1650 by march
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Post by brosin on Oct 28, 2011 12:29:34 GMT -5
Yeah I'm not sold on the Twist although it could be a lack of understanding on my part. I guess I don't see how keeping the long end of the curve low helps banks at all. The main issue with the economy does not seem to be that there is no demand for loans - it appears more to be that the banks are not willing to lend at current rates.
Kind of a catch 22 whereas the banks won't lend unless longer term rates start heading up, but consumers that are strapped and underwater would get further hurt with higher rates. However, in my eyes, a climbing rate will give banks incentives to lend and start to cause inflation which will in turn bring housing prices higher.
I think Ben only did the Twist rather than a new round of QE because the political will is not there to be able to print another trillion dollars right now. Luckily though, the rest of the world including China appear on board with Ben's global QE plan to stabilize things.
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