An alternative to QE3..

Discussion in 'Markets & Economies' started by Blockhead, Jun 14, 2011.

  1. Blockhead

    Blockhead Active Member

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    found this article speculating on tricks the US Fed might try to dodge QE3..

    cliffnotes:

    Low-money rates have been successful in pumping up many asset classes, especially since Jackson Hole Speech of August 27, 2010.

    The developed world's CENTRAL BANKS have been creative in finding ways to keep REAL INTEREST low if not outright negative, making investors holding of cash a losing endeavor.

    Analysts have spent much time contemplating QE3 but what we may see will be a repeat of the FED fixing long-term interest rates at a level that will mean a NEGATIVE REAL RATE of interest-forcing money out of BONDS and into other assets.

    some interesting tinfoilhatesque comments too
     

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