Business Insider: The Best Fed Source in the World Says QEIII Is Now on the Table
- Posted on June 5, 2012 at 9:49pm by
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Editor’s note: This report by Joe Weisenthal originally appeared on Business Insider
The WSJ’s Jon Hilsenrath – whom Cardiff Garcia has dubbed “Fedwire” – reports that more Fed action is now officially on the table due to the slew of weak incoming data.
There’s no gaurantee that it will happen, or that if it did happen it would be at the June 20 meeting, but the presses are being warmed up.
Top Fed officials have said that they would support new measures if they became convinced the U.S. wasn’t making progress on bringing down unemployment. Recent disappointing employment reports have raised this possibility, but the data might be a temporary blip. Moreover, the Fed’s options for more easing are sure to stir internal resistance at the central bank if they are considered.
Their options include doing nothing and continuing to assess the economic outlook—or more strongly signaling a willingness to act later if the outlook more clearly worsens. Fed policy makers could take a small precautionary measure, like extending for a short period its “Operation Twist” program—in which the Fed is selling short-term securities and using the proceeds to buy long-term securities. Or, policy makers could take bolder action such as launching another large round of bond purchases if they become convinced of a significant slowdown.
Meanwhile, Jefferies David Zervos gives his take on the key levels to watch for more Fed action:
As always, it will be hard to pinpoint exact tipping points for a move – but I suspect that if we see a combination of the DXY (dollar index) at 86/88, and the spoo (S&P) at 1200/1225, the Fed will jump into action. I do not think we need to talk about the PCE or the U-rate when it comes to the Fed – the real triggers are in liquid market prices. And, in particular, if these levels in the DXY and spoo are breached, any sensible forecasts for forward looking employment and inflation that enter into a Taylor rule will plummet – hence accommodation follows!! In fact, take a look at a DXY chart since early 2008 – the 88 level was a good indicator for QE1 and QE2.
For more Zervos, find his stuff at Markit Hub by clicking here.
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Comments (84)
mrsuperpat
Posted on June 5, 2012 at 11:25pmIt would happen even under a Romney Admin because thats all they got left because they won’t make the necessary cuts. Romney wants to increase military spending and get involved in more wars. He doesn’t want to fix the budget. They will do this until financial Armageddon occurs because Romney doesn’t understand monetary policy. He just knows how to grease Wall Street investor hands. Dems and Repubs are addicted to money , propping up their Zombie bank campaign contributors. This is officially a Zombie nation of fools where they can wrap anything in the flag, we salute, and follow them down the rabbit hole. Since we are approaching the event horizon of the toilet bowl you would think more people would get serious about debt but most people live the moment so I guess eventually Humpty Dumpty will do what he does best.
Report Post »soybomb315
Posted on June 5, 2012 at 11:31pmZombie nation…..so true
Report Post »Ghandi was a Republican
Posted on June 5, 2012 at 11:32pmBS – All you have to do is rewind the obama debt spending and make the Democrats and their progressive friends cough up their back taxes!~ It’s not rocket science!
Report Post »lukerw
Posted on June 5, 2012 at 11:39pmIdeology rejects all other views… resulting in following the Ideology to it’s conclusion… even if Total Destruction! It is the Lesson of WWII.
Report Post »RR1
Posted on June 5, 2012 at 11:53pmAfter the current Job Report last week, Qe3 is all but certain.
The recovery is not as robust as reported
http://www.dailyjobcuts.com
Report Post »-
AmericanFightingMan1
Posted on June 6, 2012 at 12:49amMost of the sane, awake people here know the BHO and political elite gig is to run the US economy into the ground, create social dysfunction, famine, shortages, crisis, etc., with the effect that desperate people, willing to do anything to feed/house/protect their families, will run in droves to the “loving” arms of their dictatorial government. From then on, these will be the slaves.
The elites know the gig. Their miscalculation MAY be that Americans are stronger than they think. I don’t know if that is true. We have been weakened tremendously over the years with leftist indoctrination and self-destructive behaviors. But, Americans do come from a very tough stock.
It will be as close as the Bush/Gore election. A hair’s breadth.
Report Post »creepshow
Posted on June 6, 2012 at 2:46amRegarding the Fast & Furious scandal:
Report Post »John Boehner and Eric Cantor are blocking Darrell Issa from moving forward with contempt charges against Eric Holder.
Why?
SaintzOfAk
Posted on June 6, 2012 at 4:35amOur comfy lifestyles have led to greed overtaking common sense. This truly is a nation of sheep, and our founders would be weeping bitterly right now for what we have allowed to happen. If anyone wants to know the end game, all you need to do is pick up The Good Book and dial in Revelations….God help us all, especially our children……Money truly is the root of all evil.
Report Post »nzkiwi
Posted on June 6, 2012 at 5:11amI posted this link on another story, but it applies equally as well here. This is a presentation in plain, easy understandable language by a guy in the business.
It is about half an hour long, so you might want to bookmark it and come back to it if you don’t have the time at the moment. There is a special mention of quantitative easing and what the results of it are. Also it explains clearly what the problems are with Greece, Italy, Spain, etc, and there are a couple of pointers on how to look after your money, depending what happens.
As I said on the other story; all of our leaders should be made to watch this before taking up office.
http://www.youtube.com/watch?v=LKsZ1hqHBHU&feature=related
Report Post »historyguy48
Posted on June 6, 2012 at 7:25amWhats the problem? First let the world know how many thousands of tons we have in Fort Knox, and then use that to back the dollar.
Report Post »Second cut roughly 46% of federal government.
The only problems are; there is no gold in Fort Knox and we will balance the budget by 2040, when the collapse will happen at some point within the next year or so.
Since this is the case your best strategy is to enter the Doomsday Preppers contest and win the survival retreat. After all your odds of winning are far better than the odds of our politicians doing what must be done.
Dcjones
Posted on June 6, 2012 at 9:11amIf you don’t understand the problem you need to watch this:
http://www.youtube.com/watch?v=e6LWqgohO4E
The problem is mostly the FED. Mayby 1/5 democrat fiscal policy but 4/5 monetary policy.
To fix this… You need to watch and do the following:
http://www.youtube.com/watch?v=1YQ-BAOaL9c&feature=related
Best thing about this fix is that you do not need any politician, you can take action now and it is sure to work.
Report Post »Economist
Posted on June 6, 2012 at 10:03amdcjones
Great videos!! thanks for that.
Report Post »stopspendingourmoney
Posted on June 6, 2012 at 5:18pmThis is why Ron Paul is our only hope for this nation and our dollar.
Report Post »Jaycen
Posted on June 7, 2012 at 12:28amI was with you until I heard “wars” and “zombie”. Take your Ron Paul waves magic wands nonsense to the Huffpo. You’d get a better reception there.
You aren’t a Constitutional Conservative, and neither is Ron Paul. Bankers aren’t zombies, they’re heavily regulated by the Federal Government, and in many cases slaved to the Federal Reserve’s fractional banking socialism. The behavior of bankers in these banks is the natural result of the system under which they are required to operate. If you just bothered to understand it, you‘d see that they’re doing their best (certainly some people are actively corrupt). The policies enacted are the unforseen consequences of the federal regulations.
Report Post »kcinco
Posted on June 5, 2012 at 11:22pmWhat’s the definition of insanity?? Repeating old behavior and expecting different results! Seems like QE1 and 2 didn’t work, so what makes them think a third attempt will? What is wrong with these people?? Don’t they look at history or stats or facts? They want to impose communism and socialism on us even though we see it falling apart in other countries before our eyes at this very moment! Are they so blinded by their delusions of grandeur of themselves or is it a mental illness?
Report Post »Oweitall2HIM
Posted on June 6, 2012 at 2:39amThe banks are trying to balance a bottomless sea of red ink with taxpayer money. It will never work, but what do they care…They get their quick fix of free money in the short term and we get the shaft!
Report Post »Obama_Sham
Posted on June 6, 2012 at 6:56amLike they expect different results… This is the final installment of the biggest heist in U.S. history…
Report Post »soybomb315
Posted on June 6, 2012 at 8:23amalso insanity to vote for the people who believe in the same things as previous and expect a different outcome
Report Post »OuttheSocialist
Posted on June 5, 2012 at 11:18pmThis would be more of the same; Democrat buddies of Obama getting mega millions before the Elite Party of Democrats are booted this November.
My fix for this mess is to lower the Corporate tax rate to 10% and then put a 10% tarrif on all imports except from countries that have human rights issues, they would get a 20% tarrif.
Report Post »Ghandi was a Republican
Posted on June 5, 2012 at 11:31pmNot to mention “trickle down community organizing millions” Vote buying scams. Opposition research funding (and manufacturing) and other progressive favorites. These people need a serious beat down. The day of reckoning 2012 cometh!
Report Post »TrueSoundsOfLiberty
Posted on June 6, 2012 at 8:11amI don’t think you know how a tariff works. The country or company sending a product to the U.S. doesn’t pay the tariff. The company in the U.S. that receives the goods.
I’ll lay it out quick. If Canadian company sells a hammer to hardware store here and the store pays $1.00. The store wants to make a 30% profit they will sell that hammer at $1.30
Now if you impose a tariff on that hammer coming from Canada of 10% the Canadian company still sales that hammer to the hardware store for $1.00. The hardware store pays the $0.10 tariff thus costing the store $1.10. In order to make their 30% profit the hardware store won’t continue to sell that hammer for $1.30 but for $1.43. So in the end it’s the consumer that pays the tariff.
All in all, unless every product can be made in the U.S. This will only serve to raise prices for you and me.
This is just the calculations for an end product, if the price was raised on raw materials the cost to make the end product would grow even more.
Report Post »Treaty
Posted on June 5, 2012 at 11:07pmIf this happens it will be the nail in Obamas campaign coffin
Report Post »soybomb315
Posted on June 5, 2012 at 11:07pmPeople act like Romney is a financial wizz and a great leader. So what are his opinions on QE3? Why doesnt he provide leadership and make the conservative argument on why it does more harm than good?
Report Post »Ghandi was a Republican
Posted on June 5, 2012 at 11:11pmBecause everyone knows it’s a stoopid idea. Everyone who is anyone has been proclaiming this for 3 years! IT’S PRINTING MONEY FOOL!~ Counterfeiting and destroying people’s retirement accounts through devaluation!
Report Post »How can you ask such a moronic question as to what anyone thinks about it? It’s a progressive ploy to manage the decline of the dollar and the United States. THEY THEMSELVES ALREADY TOLD YOU THIS!
soybomb315
Posted on June 5, 2012 at 11:28pmSo why doesnt Romney come out against it?
Report Post »Dejavu
Posted on June 6, 2012 at 2:03amDid you ever consider that Romney isn‘t a mind reader and that the Fed doesn’t consult with him when they decide to print more money, you moron. Geez.
Report Post »resme
Posted on June 6, 2012 at 5:55pmI doubt he comes out against it, Look at his campaign donations. Four of the banks, that meet with the fed a few times a year.
Goldman Sachs $573,080
Report Post »JPMorgan Chase & Co $415,075
Bank of America $398,850
Morgan Stanley $373,850
Formula382
Posted on June 5, 2012 at 11:07pmQE3 coming, make no mistake, along with….Higher:
Gasoline prices
Commodity/Food Prices
Gold/Silver prices
Very short lived asset prices
The silver lining is that Obama is toast now, no way he can recover from reality that we’re heading for another recession, 100% chance by 1st quarter 2013.
F-Off-Obummer….huge party at my house in November, Obama, bend over, this is gonna hurt you more than it will me:-)
Report Post »Ghandi was a Republican
Posted on June 5, 2012 at 11:06pmYea– More Bubble on suds propped up by clouds! Just in time to claim “obama‘s policies are working’ in October!
Report Post »Walkabout
Posted on June 5, 2012 at 11:05pmI told my kid that life sucked & that the “ruling class” would do this last week. It is not much of a prediction if one reads Zero Hedge. After listening to Jerry Doyle I realize just how over leveraged the big banks are. It is something like 600 or 700 to 1.
Michelle Bachman & Thadeus McCotter were right.We should have let the banks fail. they would not needed to unwind their positions then. There would have been a fire sale, some new party would have the assets & we would have had a sharp, short recession.
As it is we have crapitalist banksters on one side & socialists (Obama et al) on the other side. They are all losers.
So we are going to print money. More poison. Just don;t know how the EU will turn out. French President Hollande does not get it. He wants to engage in more debt. He want s to issue more bonds.
HOLLANDE IS AN UTTER MORON.
Fromreading I think austerity is a mistake. It will lead to a economic retraction. What we need to do is have a Ryan plan. Slow the rate of growth of no increase for 3 to 5 years.
If we continue with baseline budgeting, then the Democrats will kill us.
Report Post »psadie
Posted on June 5, 2012 at 10:53pmIf the clown Bernanke pushes another QE3 then he should be thrown in prison. ENOUGH IS ENOUGH. Why do they continue to throw more money at something that has not worked? STOP THE DAMN SPENDING. The recession has never left us and things will only get worse, like it or not it is coming and it can’t be stopped.
Report Post »love the kids
Posted on June 5, 2012 at 10:48pmPeople, don’t be mistaken here, if QE3 is stopped, it will be very hard in the short term, but in a couple of years, Americans will do what they always do, respond to a need. If we had started facing the music 3 years ago, we would now be on a huge upswing, but the folks up top don’t want to look bad on their shift.
Report Post »chucksue351
Posted on June 6, 2012 at 4:29amthree years ago, are you kidding, this should have been nipped in the bud 40 years ago or longer what with all the great society and lets all have a party mentality, i hate to say it but those who lament over the country falling apart should look in the mirror once in awhile and ask their grandchildren for forgivness!
Report Post »TSUNAMI-22
Posted on June 5, 2012 at 10:47pm“Business Insider: The Best Fed Source in the World Says QEIII Is Now on the Table”
~~~~~~~~~~~~~~~~~~~~
Well, duh. How else can you keep an addict addicted without the drug dealer supplying a never-ending feast of crack.
Bernanke: “we have absolutely no intentions of monetizing the debt”.
I wonder how many Quantitative Easing’s it will take before the body finally collapses in a big limp heap?
Off topic (sort of) – why doesn’t Israel just manufacture tons, and tons, and tons of Iranian currency and then crop dust Iran with it by stealth bomber? Iran would collapse over night.
Report Post »love the kids
Posted on June 5, 2012 at 10:44pmThis has to stop being called, “Stimulate the economy”, and needs to be referred to as, “Floating the economy”. If the economy had been stimulated, it would have kept going on it’s own, right now, most people think that the Govt. needs to keep putting money in to keep going.
Report Post »Obama will do ANYTHING, no matter HOW BAD for the USA to give the appearence that things are OK before the election. He is absoutley killing the country.
gbfreak
Posted on June 5, 2012 at 10:38pmWe must stop printing worthless money immediately! Where is our President????
Report Post »love the kids
Posted on June 5, 2012 at 10:45pmHe is the one standing by the presses “Start Button”
Report Post »TSUNAMI-22
Posted on June 5, 2012 at 10:50pmThe only way to fight this kind of Fed stupidity is to cut out the middle-man and start using our own alternative currency; namely “bartering”.
Render the Fed obsolete.
Report Post »soybomb315
Posted on June 5, 2012 at 10:31pmQuick – someone tell me what Romney’s position on QEIII is….
Report Post »TSUNAMI-22
Posted on June 5, 2012 at 10:51pmGood suggestion.
Report Post »Sue Dohnim
Posted on June 5, 2012 at 11:12pmPrint, or collapse a systemic imperative…
the system is beyond any Presidents ability,,,
Unfortunately they will print and print and print to create inflation and devalue the debt..
If they don’t print the debt goes through the roof…
it is a catch 22.. a deflationary collapse or an hyper-inflationary depression… they will try the latter…
Report Post »soybomb315
Posted on June 5, 2012 at 11:36pmTaking away the government stimulus does not mean the economy will surely collapse – that is a progressive argument
There is a 50/50 chance that if they stop inflating/stimulating, the free market system will recognize it and become more confident and make the proper adjustments to become healthy again. It is not a sure bet – but it is better than certain collapse (hyper-inflation)
Report Post »Sue Dohnim
Posted on June 5, 2012 at 11:59pm@SOYBOMB315
No you are wrong and I hate progressives more than anyone, but this is my profession..
When the printing stops, the global liquidity gets squeezed and the $$ rises, assets collapse and the economy stops dead. Worse, the debt is priced in $$s and as the $$s rise so does the debt, but assets are falling and Gov revenue falls. it is a deflationary collapse,
The problem is the financial system is a ponzi scheme and you can’t stop it. I don’t like it but you have to realize that all powers that be will print and print as they do not want to face a deflationary collapse. It is systemic, the entire thing is so corrupt that doing the right thing now will be a disaster..
The least path of resistance is to inflate (print) away the debt and devalue the currency..
The parasite has consumed the host to a point that killing it will kill the host.
Print or die, trust me…
Report Post »soybomb315
Posted on June 6, 2012 at 7:22am@Sue
Report Post »sounds like you are more ron paul than mitt romney
balrog25
Posted on June 5, 2012 at 10:19pm“Give to Ceasar ….” For the rest of us, pray and batten down the hatches. See you on the other side, may God bless you. Amen
Report Post »KidCharlemagne
Posted on June 5, 2012 at 10:16pm……and here I was getting acclimated to the recent 60 cent a gallon drop in the price of gas….
I guess that’s over with if Helicopter Ben starts counterfeiting again…
Report Post »hauschild
Posted on June 5, 2012 at 10:08pmBuy into the market and ride it while it lasts. That might be the last run for 10 years.
Report Post »Snowleopard {gallery of cat folks}
Posted on June 5, 2012 at 10:06pmWhy not just call QE3 for what it is…TITANIC.
Report Post »phrogdriver
Posted on June 5, 2012 at 10:06pmQE worked so well in Japan, they call it the “Lost Decade”.
I highly reommend the book “This Time it Will Work: Eight Centuries of FInancial Folly” by Carmen Reinhart and Ken Rogoff.
It’s a real snore fest, but if you can stay awake through it, it will keep you up at night.
Report Post »Sue Dohnim
Posted on June 5, 2012 at 10:04pmi thought the best fed source was Michael Moore?
But he doesn’t know anything about economics…
BTW, Gold going up,,
Report Post »Mutiny
Posted on June 5, 2012 at 10:01pmOf course it is. That is the only thing keeping the thing going. Once that money stops and people buying the bonds realize that the money they are going to be paid back is worthless the whole game is over. But, hey GO ROMNEY, he will fix it. No cuts in spending, ignore the FED, bailouts, global police force, all while being funded by the same big banks as Obama. LOL!!!
Report Post »coldarkstare
Posted on June 5, 2012 at 10:01pmQE3=definition of insanity
Report Post »Inlightofthings
Posted on June 5, 2012 at 9:57pmCoined a new phrase today:
Presidebt….
Sorry had to say it again.
Report Post »db321
Posted on June 5, 2012 at 10:06pmQEIII = Monetary Collapse of the US Dollar! I will be over folks.
Report Post »Sue Dohnim
Posted on June 5, 2012 at 10:06pmNice I like it,,,,
Report Post »mine is.. Demokratchik (Statist: demokра́тчик, plural demokratchiki) is a colloquial term for a full-time, professional functionary of the Progressive Leftist Socialist Communist Party or government; i.e., an agent of the governmental or party “demokrat” (Statist) that held any position of bureaucratic or political responsibility.
PROSECUTE_PUBLIC_SERVANTS__FOR_CONSTITUTIONAL_TREASON
Posted on June 5, 2012 at 9:57pmWake me up at QE15. There’s no other option. All options are just different versions of QE.
Report Post »soybomb315
Posted on June 5, 2012 at 9:56pmwow, i just read an article on drudge about the Louisiana Republican convention. Looks like establishment republicans broke the rules AGAIN. Man this is getting pathetic. If this keeps up, we need to seriously consider a 3rd party run because the establishment is showing themselves to be just as bad as democrats.
http://reason.com/blog/2012/06/04/ron-paul-chaos-at-louisiana-state-gop-co
Report Post »Mutiny
Posted on June 5, 2012 at 10:08pmYeah I sent like 5 tips to the Blaze regarding it Sunday. Its seems its not news worthy. I mean dead cat helicopters and the car alarm prank are much more important.
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