QE3 TIME!!! FED BOARD TO CONSIDER QE3 IN THE JANUARY MEETING

[link to www.cnbc.com]


The make up of the Federal Reserve board is changing. New members are more likely to be in favor of another round of QE as they view the increase in holiday spending to have come from savings , and therefor unsustainable. (No surprise).

IMHO, this could be the explainaton for the move up in the markets as of late. Further QE will place more inflationary pressures on the economy, thus making market profits likely. What is wrong is, if I am correct, is that this message has clearly beeen whispered to the "Big Boys" long before public dissemination. The market moves have already been made & any of us who try to move in at this late date will be slammed in the downdraft when "sell on the fact" kicks in.


"Federal Reserve officials are seriously considering giving the US economy—and especially the housing market—an added jolt with more quantitative easing...

...As part of an normal rotation of presidents, the makeup of the FOMC will become more dovish this year ...

... The new program will likely concentrate on mortgage-backed securities in an explicit attempt by the Fed to provide more help to the housing market."

Last Edited by LJS on 01/13/2012 08:25 AM