Come on over, it's a lonely chatroom.
My chat comments wont go through...
Just got through :)
I wish someone would ask Ben your questions! Stuttering would become a new art form.
Well That was fun!
Bernanke already said he'd have QE3, but of course not call it that:
"Committee will continue to reinvest principal payments from its securities holdings going forward."
People will believe what they want to believe, but reinvesting princ. is not QE, because it does not increase the balance sheet and therefore does not increase the monetary base. The quantity remains constant, i.e. not "eased" any more than previously, through the reinvestment.
If they didn't reinvest the principal, that would be tightening because the balance sheet would actually shrink.