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So . . . Time for QE3?


txlaw

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I can't really take a guess, but I'm pretty worried about it!  25% of my assets are in gold miners and they have been a disappointment thus far.  I started loading up in 2009 and stopped late 2010, I thought some of them would be 6-10 baggers and just haven't gotten anywhere near the return i had hoped for.  A QE3 announcement would be a blessing!

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I think you'll have a clearer picture tomorrow.  If the jobs report is good, you probably won't see QE3 anytime soon.  If the jobs report is bad, and markets react anywhere near how they did today, then I think you'll see some coordinated action over the weekend and into next week. 

 

You've got a frickin' election year coming up, and the President is not going to go without trying everything to get the economy going and win a re-election.  Cheers!

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The only question is when really.. and with what bullets?

 

They've stated already they have some more unconvential methods but they'll be QEing all the way to the Election.

 

It doesn't matter who is in Congress when the economy suffers, asset prices collapse and panic sets in.  Both Democrats and Republicans will do anything they can to stem the blood-letting...damn any future consequences if they see their own IRA's diminishing. 

 

They will print when push comes to shove...print all the way and maintain a zero rate policy.  Will it do what they want long-term?  Probably not.  But they will print once they start to panic...just human nature!  Cheers!

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The only question is when really.. and with what bullets?

 

They've stated already they have some more unconvential methods but they'll be QEing all the way to the Election.

 

It doesn't matter who is in Congress when the economy suffers, asset prices collapse and panic sets in.  Both Democrats and Republicans will do anything they can to stem the blood-letting...damn any future consequences if they see their own IRA's diminishing. 

 

They will print when push comes to shove...print all the way and maintain a zero rate policy.  Will it do what they want long-term?  Probably not.  But they will print once they start to panic...just human nature!  Cheers!

My point wasnt partisan (as you know Im Canadian) - I agree and its just the way it is and we could only imagine what would have happend had the previous admin had to tackle it. Im not sure what they would do but they seemed pretty happy to dodge and leave certain areas (the whole auto industry mess) for the next admin.

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Seriously though... the Pres wants to get re-elected.  Congress wont block him from "QEing all the way to the election", and more unconventional projects, lest they be accused of ruining the economy.  I think it is just a matter of timing.  They want to go into the election with as much in their favour as possible.

 

 

The average returns coming in the last year to a pres. election have been 12%, with no down years ever... so I have read somwhere.

 

 

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I don't know what people are worried about.  The jobs report just came out and it was fantastic!  Looks like a few extra people got jobs at fast food joints or something.  The futures have shot up so all is well with the world. This was just what people were looking for to turn those frowns upside down.

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I don't know what people are worried about.  The jobs report just came out and it was fantastic!  Looks like a few extra people got jobs at fast food joints or something.  The futures have shot up so all is well with the world. This was just what people were looking for to turn those frowns upside down.

 

Anyone else expect those glowing numbers to get revised downwards next month?

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I do think we would have QE3, it is just a matter of when. I hope this time they target the long end of the maturity curve (10 year treasuries) unlike QE2. In any case I think the actual effect on the economy is going to be pretty slim. If Ben announces QE3 and all that it entails is shaving his beard, the market would still respond very positively.

 

Vinod

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I dont know why your worried about this:

 

Buffett says to "buy when others are fearful and sell when others are greedy"

 

and Ben Graham says to buy when there's blood in the streets.

 

Hee, hee.... ;)

 

LOL

 

I have thought the recovery was false for the last 8 months, but the economy didnt just fall off a cliff this week. Europe will be a basket case until its not and the politicians will be forced or scared into action as metrics and stock prices get worse and worse. This reaction (at least in my stocks lol) is overdone.

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I dont know why your worried about this:

 

Buffett says to "buy when others are fearful and sell when others are greedy"

 

and Ben Graham says to buy when there's blood in the streets.

 

Hee, hee.... ;)

 

haha, nice ;D

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QE 3 will cause ONLY gold to go up. Right now at least the US$ and treasuries are increasing in value. I think QE3 will result in only gold going up in fact the gold bugs are daring Bernanke to enact it. I saw something yesterday which stated the gold to Dow ratio was at levels not seen since the March of 09 lows.

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