It is simply so pathetic how desperate the speculators in NYC are for more easy money. Even a hint of it in the Fed minutes spiked the market up 8 S&P points. QE3 watch begins! Even though we are in the midst of QE2.5 ($300B annually) and QE2 ended... uhh, 7 market sessions ago.
The rest of the economy be damned. Personally I am hoping for QE3 so Ben can say not me when everyone asks why prices of oil are skyrocketing again. Maybe he'll tell Obama to drop some more SPR onto the market because clearly he has nothing to do with commodity inflation. After all the Fed has a magic wand that inflates 'good' asset prices (stocks) but not 'bad' ones (commodities).
Still sticking to my call for QE3 by winter, as the next round of desperation arrives.
Circus and bread.
- “The key takeaway from these minutes is that FOMC members are as perplexed about the economic outlook as almost everyone else, and that there is a split on the Committee as to whether the next move, whenever it may be, is more likely to be QE3 or tightening,” said Joshua Shapiro, chief U.S. economist at MFR Inc.