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American Capital Agency Corp. Message Board

  • raybans2 raybans2 Aug 29, 2013 3:25 PM Flag

    Fed Tapering: Economy Without QE May Not Look Much Different, Here’s Why

    Basically the argument is that QE had very little possive affect on the economy so it is likely to have very little negative affect if taken away. Listen to the video below.

    If the Fed believes this as well then they will taper for sure. So the question is does the Fed believe QE is a huge success or do they believe it made little difference? Because the answer to that question will determine what the Fed is likely to do.

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    • QE is the about the only reason the economy is growing.

    • It is coming. And the FED said we are not Japan. Hence, we won't have low rates for a decade or two. We will have a violent move to the long term average sparking a panic sell-off American style, like 1929 and then a massive inflation to handle and waterdown the pension and medical costs the government is responsible for. The massive BABY BOOMER wave is coming and labor prices, commodity costs have already started to accelerate. After long periods of no inflation, low interest rates, etc, we always cycle back for 30 years of inflation cycle, which will start wil a vengeance in 2016 and really heat up in 2020 - 2022, GET PREPARED. Anything with fixed yield is going down down down, especially all the 3% 30yr. MBS these guys loaded up with your equity and then bought ten times more with the leverage. PRETTY DUMBO MISTAKE, ALMOST IMPOSSIBLE TO AVOID CONTINUING LOSSSES. Just my opinion, do your own research..

    • I think they're coming to the realization that QE has more likely been a huge failure than a huge success. And they haven't yet faced the possible negative consequences of having a large amount of excess reserves.

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