Bernanke's Bluff: QE II won't Really Happen?

[Glenn Black]

Re: Bernanke's Bluff: QE II won't Really Happen?

To me, it is unclear where the tax debate will end. Or will it ever end? It may just oscillate between tax cut, increase tax, tax loop holes for our friends, unfair tax burdens, etc. Around & around we go.

I agree that there is the entitlement mentality. That's OK when you have <5% unemployment. When you inverse that, and have only 5% employed, how much can the government afford in social welfare?

One idea is that everybody gets a private plan. You get out only as much as you put in. When you withdraw often and for extended duration, you private plan for entitlements go broke, and you get no more. It can get pretty bad for some people under that system. Is there a negative feedback loop to stop everybody from kicking back & taking it easy?

[we_are_toast]

Re: Bernanke's Bluff: QE II won't Really Happen?

It seems with this big move up in gold and the rapid move down in the dollar that it may have an effect on the FED's decision in Nov. Could it be that all the jawboning by individual FED members did exactly what they had hoped, and even more? With the dollar dropping the way it is, can they go through with the QE2 in Nov. and risk a real rout of the dollar?

I'm having some doubts here.

[we_are_toast]

Re: Bernanke's Bluff: QE II won't Really Happen?

The Biggest Sell The News Event In Stock Market History

No one is smart enough to know how much QE is priced into the market, is it $500B? $1 trillion? $3 trillion? No one knows, but what we all do know is that the Fed through its non-stop yapping has now set up the ultimate moral hazard in financial markets. It doesn’t matter if all of the economic data miraculously comes in extraordinarily bullish over the next three weeks. The markets have put the Fed into the biggest box they have ever been in. They must do QE2 at this point and they probably have to do it big. The problem is, with the equity market up at the levels it is I don’t think ANY amount of QE2 will cause a rally. In fact, this might be the biggest “sell the news” event in the history of the stock market.

http://www.zerohedge.com/article/gue...market-history

1st week of Nov. is looking to be really interesting.