QE3?

[Iron]

Bank of England under pressure to print more money after its own report showed the QE had a 'significant' impact - http://www.thisismoney.co.uk/money/news ... money.html

[Iron]

Operation Twist is unleashed - http://blog.itv.com/news/laurakuenssber ... the-twist/

[Iron]

PS The markets seem unimpressed by Uncle Ben's latest initiative...

Jeff

Operation Twist is unleashed - http://blog.itv.com/news/laurakuenssber ... the-twist/

[superfrank]

twist and bust!

The only thing that has been holding equity markets up is the expectation of yet more reckless easing/printing - as soon as there is any doubt as to whether either will occur/work the markets drop like a stone.

[Iron]

Funily enough, the markets are dropping likes stones right now - http://www.bbc.co.uk/news/business-15014843

Perhaps yesterday's measure was interpreted by the markets as an indication that the Fed aren't keen on QE3.

I've no idea where the money is going though. Gold is steaming, and the dollar is rising against the Swiss franc.

Jeff

as soon as there is any doubt as to whether either will occur/work the markets drop like a stone.

[superfrank]

I've no idea where the money is going though. Gold is steaming, and the dollar is rising against the Swiss franc.

Bonds.

The dollar is rising as money goes into US treasuries and flees the Eurozone. The Swiss Franc has only dropped because of SNB intervention.

Gold and silver falling on dollar strength which is to be expected.

Commodities getting hammered too because of dollar strength and the outlook for world growth - copper has fallen off a cliff.

[Iron]

That makes sense, although personally I wouldn't touch US bonds with a bargepole right now!

There's a good chance President Obama will be re-elected in the spring. I'd like to see him try to hammer out another budget deal with the Republicans after he started talking about tax rises and massive spending just weeks after his last deficit reduction deal with them!

Jeff

Bonds.

[superfrank]

I read a post by someone on another forum who said he'd exchanged emails with Adam Posen (the American on the MPC who is constantly calling for more QE).

He suggested that he is producing policy to support the US and his good friend/co-author Ben Bernanke.

"I swapped some emails with Posen and when I suggested that, my email account was blocked by the B of E. Truth hurts?"

[Iron]

We all make mistakes, but you have to wonder about the judgement of someone in a position like that who would make such controversial comments to a complete stranger, a la Vince Cable...

Jeff

[superfrank]

no the forum poster put it to Posen that that was what he was doing... and he obviously didn't think much of the suggestion.

[Iron]

Ah, I see.

BTW, if you want to email Mr King to tell him what a great job he's doing, his email address is apparently [email protected].

Jeff

[mulberryhawk]

“A critic is someone who never actually goes to the battle, yet who afterwards comes out shooting the wounded”

[Iron]

“Criticism may not be agreeable, but it is necessary. It fulfils the same function as pain in the human body. It calls attention to an unhealthy state of things.”

Winston Churchill

[mulberryhawk]

“When we judge or criticize another person, it says nothing about that person; it merely says something about our own need to be critical.”

[mulberryhawk]

We could trade quotes all day, Im just making the point that its very easy to be a monday morning quarterback