Wednesday, October 13, 2010

Analyst: A Course Toward Titanic Trouble

The stock and bond markets have soared in recent weeks on the expectation that the Federal Reserve will soon embark on "QE2"--a new "quantitative easing" plan in which the Fed buys debts like Treasury bonds and mortgage bonds in an attempt to inject more cash into the banking system and restart the economy.

But this QE2 voyage could "set a course towards Titanic trouble," says Daniel Alpert, managing partner at Westwood Capital.

QE2 will not help the real economy much, Alpert says. What it will do is (temporarily) inflate asset prices--just as we have seen over the past few weeks as the market has concluded that QE2 is on the way.


  1. This comment has been removed by a blog administrator.

  2. Sam, are you mixing meds?

  3. thinking not a big QE2 but more slow drip down in debasing our currency, trying to control the crash.

  4. 9.17
    may be take the form of Fed purchase of even more debts for capitalist bailouts ,including say even more than at present(now disguised)purchases of US Treasuries 'as necessary", without mentioning any jaw dropping big trillion dollar numbers.
    Say @ hundred billions per month purchace of treasuries and other debts ,still works out at
    $1.2 trillion a year.

    A big hit by the printing presses to the dollars value.

    The biggest currency manipulator in the world is bringing on a worldwide currency war.
    To avoid a default on US debts from the great ponzi fraud The Fed turns to the printing press.

    As it devalues continualy its own dollar by manipulation ,it then claims in comparison the Chinese and other currencies are overvalued by comparison.
    It will not end well for working people.
    If the Yuan rises so will the cost of items in wal-mart rise for them .
    If the Yuan is revalued,other cheap labor countries and often US run Multinational companies will then step in to replace the import commodities from China made by the very same multi-national companies, say in Mexico.


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