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Growth in the time Quantitative Easing!
Background: In my blog post – ‘How FED talks affect the rest of the world!’ I discussed the impact of ‘QE taper talks’ on bond market returns. In this post I will outline how the policy of QE (Quantitative Easing) has been adopted by most advanced economies to boost aggregate demand and in...
Personal Account and End of QE3
I'm surprised there isn't already a thread on this. I've been waiting a long time for this, curious which way you guys see this breaking. I don't see how markets can stay at this level with the Fed turning off the tap. Will EM retreat keep domestics aloft? Dabbling in some long-dated QQQ SPY puts...
Effect of QE on M&A activity
I'm trying to work out qualitatively what the impacts are of countries engaging in QE on M&A activity. Positive impacts from QE: - Increased stock market valuations (due to more cheap money flowing into equities) which means companies can use their increased share price as an acquisition currency -...
QE: The Greatest Thing Since Sliced Bread
Quantitative easing (QE), or the Federal Reserve’s bond buying program, has been a spectacular success. Arguably, the greatest innovation since sliced bread. Don’t believe me? I mean, if you listen to many of the experts, strategists, economists, and blogosphere pundits, the magical elixir of QE...
Fed Policy Is Contractionary
You hear it all the time, maybe even every day: the Fed’s never-ending quantitative easing program led by $85 billion per month in asset purchases, will eventually cause hyperinflation. This will eventually lead to a devaluation of the dollar, skyrocketing prices for everyday goods, and death,...
Why does easing boost the stock market?
Whenever QE is expected, the market rallies. Can someone explain why that is? I don't quite understand it. Is it because the market expects people to move into equities and away from bonds?
More Easing? Really?
With the markets on the edge of their seats in anticipation of the recent announcement of QE3 by the FED, it begs the question, should we really be getting more monetary stimulation? While evidence demonstrates that the government bailout prevented a full fledged financial meltdown, the actual...
S&P 500 P/E Valuation
1. Has Quantitative Easing and Operation Twist affected the P/E valuation of the S&P 500? 2. If so, what would be a way to take (QE & OT) away to make the S&P 500 P/E on a true relative basis from previous years? 3. It's the general assumption that the QEs have driven the stock market higher, and...
ECB Giving Away the House
Lord knows we love our quantitative easing here in the good old U.S. of A., so why should Europe be any different? Or so went the thinking yesterday when the ECB opened a credit facility that quickly reached the level of our original TARP scheme. Now it looks like the Euro is in for the same...
Media Investing in the Aftermath of Murdoch
It is only well after the smoke clears that we begin to see what actually caused the fire. In the case of Rupert Murdoch, his Bizzaro Wikileaks approach to journalism is a pretty safe bet to be the eventual culprit. Murdoch’s always been known for tough tactics and though he never ran an...
Who Wants a Fed Bond-Buyback Program?
Eighty thousand jobs does not bode well for the immediate future of our economy. The question is what to do about it, if anything. Jon Hilsenrath of the Wall Street Journal ponders this issue in his article, "Weak Report Lifts Chance of Fed Action," updated on July 6. Should the Fed institute...
Is the US stuck in a liquidity trap?
With the news that the the Fed is continuing Operation Twist and buying long term bonds, will the monetary injections help to lower the interest rates at all? Or are we stuck in a liquidity trap where the injections serve almost no purpose at all with regards to lowering rates? Also, with QE3 not...
Will There Be a QE3?
Slowly but surely we step towards our day of reckoning. In just over a month, the Federal Reserve will end its bond buying program popularly known as QE2 or what many of us skeptics have likened it to, using a tiny band aid to qwell a huge hemorrhage. Depending on which side of the isle you stand,...
Inflation 101
Sorry to deviate from Man Week, but the guy who gave you the Ben Bernank is at it again... and it’s gold . “ What about inflation statistics other than food and gas? Are those going up? Somewhat, but they’re understating the truth. Why? They use virtual price decreases to offset real price...
QE3's coming and its name is... War?
I usually read Zero Hedge’s gloom and doom commentary with a grain of salt but this recent post really caught my eye. George Washington argues that war is upon us, thanks to another round of Military Keynesianism and quite frankly, it doesn’t seem that far off to me. Look at the posts on WSO...
Quantitative Easing 101
The Ben Bernank’s second dose of quantitative easing has been this month’s hot topic on Wall Street, with countless luminaries from across the globe flooding the internet, television, and even radio waves to voice their opinions on the matter. Some of it was praise and adulation for the Ben...
Inflationary Banana Arbitrage
Once in a rare while a topic comes up on WSO that I feel is truly blog worthy. In this particular case for no better reason than the collision of reality and perception...mine, that is. Obviously, the news of the week is the Fed's $600 billion Treasury spending spree. Reading over this topic, which...
Julian Robertson Gonna Put You on a Diet, Fatty
In an interview with CNBC on Thursday, hedge fund elder statesman and father of Tiger Balm, Julian Robertson, shared his thoughts on the Critical Topics of the Day , including the recent elections, quantitative easing, and most importantly: fat people. Read the full interview transcript here , or...
The Road to Ruin
A very well written piece by Roger Altman (most of you know him as CEO of Evercore) in the latest issue of Foreign Affairs. Some shocking excerpts from his piece include: - Economic threats have been used to influence foreign policy in the past. In 1956, during the Suez crisis, the US threatened not...
Bernanke's Self-fulfilling Prophecy
Living up to your own prophecy. It can be a daunting task. Sometimes in life we build our identity around a premise, what do we do when that premise takes us to task? That's my question for Ben Bernanke whether he hears me or not. There is no doubt that a hundred years from now when a new generation...
The World Currency War begins
The world currency war. I like how that sounds. Are there any nations that still use hard currency? If so, I've got them in the office pool. In my experience, many Fiats fighting can equal one classic Yugo and nobody needs that in their driveway. Yesterday's fiery speech by Guido Mantega, the...
EURUSD: QE2, Oil price. Debt ceiling, Earning season
Hi all, what are the effects on EURUSD: 1.) as QE2 ends 2.) Oil price 3.) debt ceiling rise 4.) waek earning season Thanks.
44 million in the U.S. Use Food Stamps, 14.3% of Population
44mm citizens in the United States are now using food stamps. That is almost 14% of the population? What affect has quantitative easing had? Grain and corn prices are up 80%+ over the past few months...According to ZH, "Bernanke's plan to recreate Libya in our own back yard is continuing to work...
Hilarious cartoon ownage of the Fed - Xtranormal
As found here: and here: http://www.huffingtonpost.com/2010/11/12/fed-anim… Truly hysterical stuff.
purpose of quantitative easing
So I was reading ZeroHedge, and apparently China's largest state run english newspaper is accusing the US of actively attempting to debase its currency. http://www.zerohedge.com/article/empire-strikes-b… Ignoring the hypocrisy of the Chinese, what do you guys think of the idea that the Fed's main...
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