Fed Statement hints towards no QE3

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#1 Wed, Jun 22, 2011 - 12:44pm
lilbromarky1
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Fed Statement hints towards no QE3

https://www.federalreserve.gov/newsevents/press/monetary/20110622a.htm

Looks like they might let the markets take a nice swan dive this summer

Edited by: lilbromarky1 on Nov 8, 2014 - 5:06am
Wed, Jun 22, 2011 - 12:47pm
Shill
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Nice

203 hours till FY2012 state/local budget (cuts) kick in ...

And I will strike down upon thee with great vengeance and furious anger those who attempt to poison and destroy my brothers.
Wed, Jun 22, 2011 - 1:05pm
dropout
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The QE Road

Time and time again, throughout history, it has been proven by historical fact, that once a country resorts to printing more currency to pay it's bills, it does not stop. Why, you may ask? Because its a one way road, once embarked upon there is no turning around.

Ludwig von Mises summed it up best for us years ago;

"There is no means of avoiding the final collapse of a boom brought about credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

When he speaks of "credit expansion" its nothing more more than increasing the currency supply through fractional reserve banking practises. Just another way of creating (printing) more currency. The currency crisis will happen, just a question of sooner or later.

This is the road that the powers have embarked upon. There is no turning back now. Much too late. So, for those debating whether or not there will be a QE III it's a fore gone conclusion. Of course there will be more currency creation, for they are now damned if they do and damned if they don't! Get out of paper and stay out. Or get burned.

Wed, Jun 22, 2011 - 1:48pm (Reply to #3)
davefess
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well said!

The question I have is there going to be any type of pause between QE2 and whatever they call the next round of credit expansion. I played some of my trades that way, but now begin to wonder if that was the wrong theory. I thought the Fed would talk up the dollar some more to try and drive the oil price down to around 85 bucks (dragging equities with it). Still time for that, but doesn't seem like the Bernanke is overly concerned with commodity prices. Transitory, I suppose.

"it's game over man, game over!"
Wed, Jun 22, 2011 - 1:53pm (Reply to #4)
uptofreedom
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davefess wrote: The question

davefess wrote:

The question I have is there going to be any type of pause between QE2 and whatever they call the next round of credit expansion.

nope...

https://www.zerohedge.com/article/new-york-fed-announces-it-will-conduct...

Wed, Jun 22, 2011 - 2:08pm (Reply to #5)
agauinvest
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There will be a reduction, until it hurts

It's not really QE if it keeps the balance sheet at the same level, by reinvesting stuff as it comes due. It was announced a long time ago that they would do that. I suppose some in the Fed think that's enough to keep things at current levels, but I'd still bet more on the side that it will hurt, and only then will there be big QE3.

Wed, Jun 22, 2011 - 2:33pm
Seacap81
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Serious question....is there

Serious question....is there any type of Stealth QE or money printing the Fed can get away with, something that would go undetected by even the best financial gurus. Or, are all their money printing schemes transparent.

Wed, Jun 22, 2011 - 2:45pm (Reply to #5)
Dr G
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QE Lite

...and I like the term in use: QE Lite.

Very fitting. QE isn't stopping. We all knew it wouldn't. It's just the lite version until the next full version comes out. The Fed sure does like to upgrade to the latest QE version, don't they? smiley

Wed, Jun 22, 2011 - 8:46pm
Jake
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It's Time For a Little Hubbard

The Market Crashed On Me
Your Silver--I Want to Buy it! Sell Me Your Silver!
Wed, Jun 22, 2011 - 9:52pm (Reply to #9)
uptofreedom
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funny lyrics, vocals made my

funny lyrics, vocals made my ears bleed. +1 for teh funny...

here's something kinda on topic y'all might like...

Mandy Patinkin - Brother, Can You Spare a Dime?
Thu, Jun 23, 2011 - 8:54am
Violent Rhetoric
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I am betting no QE3 at least

I am betting no QE3 at least in the short term so I was pretty happy with the Bernank's comments.

But my new favorite is Jean-Claud Trichet. 

“On a personal basis I would say ‘yes, it is red’,” Trichet said late yesterday in Frankfurt after a meeting of the European Systemic Risk Board, referring to the group’s planned “dashboard” to monitor risks. “The message of the board is that” the link between debt problems and banks “is the most serious threat to financial stability in the European Union.”
Throughout history, poverty is the normal condition of man. Advances which permit this norm to be exceeded — here and there, now and then — are the work of an extremely small minority, frequently despised, often condemned, and almost always opposed by all right-thinking people. Whenever this tiny minority is kept from creating, or (as sometimes happens) is driven out of a society, the people then slip back into abject poverty. This is known as “bad luck.” ~ Robert Heinlein

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