Bullard was just quoted on CNBC as saying that QE2 if it happens, will be in "small increments". QE2 lite, if any. Expectations of weak dollar and money printing are down. GOLD WILL FALL MORE. $1,100 here we come.
WESTERN FINANCIAL SYSTEM HAS ALREADY COLLAPSED. Heres the problem Geitner wants to be pres of the IMF. Can you imagine anyone trying to put the fact over that all the currencies are in alignment? Sorry no way! Once again Geitner has to look good in Soul this weekend or game over publicly but in reality game over privately.
They never even priced in QE1 properly imo. Way too much paper out there, resource hungry china remains :) I do think they will try another paper assault here but that's the way the banks make trading profits, their main source of gravy now that 30 to 1 leverage is gone. Just my 2 cents, shake and bake.