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  • texasbroker2000 texasbroker2000 May 11, 2011 2:10 PM Flag

    Is the market asking for QE3?

    It might ask but it's not gonna happen....QE2 had the political spotlight and is perceived as a failed policy....the masses don't care that it's bailed out wallstreet while their economic world is still suffering....

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    • But what else can they do to save the economy from slipping into recession again? Obama administration, politicians on both Houses and the Fed all have the common interest of keeping this "recovery" alive, at least on the surface, don't they?

      • 2 Replies to fed_is_it
      • Instead of taking this printed money and handing it to the crooks on wall street, they should have printed this money and put it immediately in housing leverage---WROTE DOWN ALL MORTGAGES THAT WERE UNDERWATER TO FAIR MARKET VALUE.

        Instead, Wall street profited from their housing leverage mess, and now is profiting from the printed money in the stock market. They are profiting twice.

        Had they written down those mortgages, the housing market would not be deflating, the job market would have vastly improved as people could have been mobile by moving (buying and selling their homes to relocate) and we wouldn't have massive inflation in food and energy cause the printed currency would have been written off in housing.

        Instead, we have housing deflating while energy and food inflate. What is sad is people screamed "it is unethical to write down those mortgages because I shouldn't have to pay for their mistake"...they are already paying through this fed printing of currency in the form of inflation and higher costs on almost everything.

        This is what happens when financial markets are controlled by an elite few.

        That is what should have been done...but the financial lobbyists worked diligently to make certain it didn't, instead of giving the tax payer money to underwater homeowners duped by the mobsters of wall street, they instead give the money to wall street to turn around and invest in the stock market and make themselves rich all over again.


      • They tried to short-cut around the recession by creating an equities/commodity bubble and hoped it would trickle down to raise house prices. They should have let the markets correct and funneled any injection directly to the mortgage holders. Although it seems a bit unfair to punish savers and bail out irresponsible borrowers that is far more palatable than bailing out wall street.
        The result from QE directed to wall street and the banks instead of to those who really needed it is a double-dip recession. Pay me now or pay me later principle. You can only keep shifting bubbles/pyramid schemes around for so long. QE3 cannot happen unless interest rates are also raised because nobody will buy the debt, and US can't increase it's own obligations and have enough revenue to pay interest on the debt.
        The only thing that makes sense for the long-term is a correction in the equities/commodities market back to cash desperately needed to deal with the trillions of private debt and higher interest rates and forcing banks to come clean on the debt exposure. People may need to just fork over their homes if they are underwater and pay rent to the bank. The inability of QE to improve housing is the black swan that brings down the markets. Raising margin requirements is a first step towards going back to reality, as a lot of the speculation is being driven by margin, i.e. money that really doesn't exist, just like housing was.

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