QE3 Anyone?

akuracy503 · March 30, 2011 10:58PM

Tick Tock...

derryb · March 31, 2011 12:27AM

No indication of QE3 from their comments. One has to realize any public comment by a Fed branch president is carefully planned and executed for a reason. In this case they are trying to take focus off of any QE3 by making us wonder if they will even complete their QE2 purchasing of bonds. Smoke and mirrors. There will be QE~. The big question is will there be enough delay between the end of QE2 and the announcement of further QE to see all of the makets undergo another 2008 panic. I don't believe the Fed wants to see that. I believe they will wait til the last minute to announce continued QE. The intent all along was to make this a permanent deal, but they have to sell it to us a piece at a time until we are fully dependent on it and demand that it continue indefinitely. In the meantime, behind the scenes, China continues to prep for a new world currency - a gold backed yuan. This will be the game changer. They are in a race to get it done before their economy blows up.

Justacommeman · March 31, 2011 12:49AM

I see QE 2.5 or QE3 Lite before a full on QE3 is unleashed at some point. Some folks are starting to catch on JMHO. MJ

ksammut · March 31, 2011 1:16AM

<< I see QE 2.5 or QE3 Lite before a full on QE3 is unleashed at some point. Some folks are starting to catch on JMHO. MJ >>

Agree with you. I have to believe everyone at the FED knows that there will have to be a continuation of QE. Politically, they may be waiting for some event(s) to announce a QE 2.5 or a full blown QE3. When it comes right down to it, who is going to buy all the new debt created by our deficit?

Moxie · March 31, 2011 2:12AM

<< When it comes right down to it, who is going to buy all the new debt created by our deficit? >>

My answer is that it would be the current biggest purchaser of our debt - the Fed

derryb · March 31, 2011 2:16AM

<< When it comes right down to it, who is going to buy all the new debt created by our deficit? >>

Retirement accounts. It's already being discussed in Washington.

Retirement Accounts and Treasury Bonds - America's Unprecedented Money and Power Grab

KUCH · March 31, 2011 2:45AM

They can talk all they want right now, but doubt it will be done before election 2012. We've got 1 yr and 8 months to get our IRA/401K in order. Early withdraw? If the bull market continues in PM's, you could early withdraw, pay the penalty, invest in PM's, and still realize huge profits.

akuracy503 · March 31, 2011 2:47AM

Youl could always take a loan on your 401k and pay the interest back to yourself as rules state, it's a big risk, but is it really?
The funds in my 401k are flat and risky.

Interesting thought, but how many would be seriously taking this route to PM's?

<< They can talk all they want right now, but doubt it will be done before election 2012. We've got 1 yr and 8 months to get our IRA/401K in order. Early withdraw? If the bull market continues in PM's, you could early withdraw, pay the penalty, invest in PM's, and still realize huge profits. >>

gsa1fan · March 31, 2011 2:54AM

<< Youl could always take a loan on your 401k and pay the interest back to yourself as rules state, it's a big risk, but is it really?
The funds in my 401k are flat and risky.

Interesting thought, but how many would be seriously taking this route to PM's?

<< They can talk all they want right now, but doubt it will be done before election 2012. We've got 1 yr and 8 months to get our IRA/401K in order. Early withdraw? If the bull market continues in PM's, you could early withdraw, pay the penalty, invest in PM's, and still realize huge profits. >>

>>

Did it back in 2002 after 401k dropped to 1/2 it's value the first time. Have never regretted it

derryb · March 31, 2011 2:58AM

<< They can talk all they want right now, but doubt it will be done before election 2012. We've got 1 yr and 8 months to get our IRA/401K in order. Early withdraw? If the bull market continues in PM's, you could early withdraw, pay the penalty, invest in PM's, and still realize huge profits. >>

I rolled our 401Ks over a two year period into self managed Roth IRAs. Took the tax hit with the rollovers (20% in quarterly extimated taxes). Went "all in" with AGQ in the Roths. Sold the AGQ on the ups, bought it back on the downs. Sitting on 2550 shares of AGQ looking for the next exit. Got my tax payments on the rollovers back in profit plus a whole lot more. More than tripled my retirement account value plus went from taxable to tax free money. Two more years and I can pull the roth money with no penalty or taxes. In the meantime I will look for the AGQ exit and an entry into VXX and/or TBT.

derryb · March 31, 2011 10:08AM

Looks like we will know on April 27 - first ever Fed Reserve press briefing scheduled

pf70collector · April 1, 2011 2:07AM

Stock Market at 12,400 today. Only around 1600 points away from the high and the collapse in 08. Must be all the QE money, the false unemployment rate of 8.8%, the govt's inflation rate of 1-2%......

derryb · April 1, 2011 2:17AM

<< Stock Market at 12,400 today. Only around 1600 points away from the high and the collapse in 08. Must be all the QE money, the false unemployment rate of 8.8%, the govt's inflation rate of 1-2%...... >>

If they could only manage their budget as well as they seem to be managing the DOW.....

I find it pathetic that they are threatening to shut down government because they can't agree on budget cuts that aren't even 1% of the budget.

KUCH · April 1, 2011 8:51PM

Yep, I quess we do "Walk the Talk"

57loaded · April 2, 2011 2:15AM

<< Looks like we will know on April 27 - first ever Fed Reserve press briefing scheduled >>

more on this important day from todays WSJ

linky

also more reality than tongue in cheek derryb (managing the DOW). i think we are in agreement

sumrtym · April 2, 2011 3:35AM

<< 

<< They can talk all they want right now, but doubt it will be done before election 2012. We've got 1 yr and 8 months to get our IRA/401K in order. Early withdraw? If the bull market continues in PM's, you could early withdraw, pay the penalty, invest in PM's, and still realize huge profits. >>

I rolled our 401Ks over a two year period into self managed Roth IRAs. Took the tax hit with the rollovers (20% in quarterly extimated taxes). Went "all in" with AGQ in the Roths. Sold the AGQ on the ups, bought it back on the downs. Sitting on 2550 shares of AGQ looking for the next exit. Got my tax payments on the rollovers back in profit plus a whole lot more. More than tripled my retirement account value plus went from taxable to tax free money. Two more years and I can pull the roth money with no penalty or taxes. In the meantime I will look for the AGQ exit and an entry into VXX and/or TBT. >>

How did you roll a 401k into Roth IRA and not regular? Contributions to a Roth are limited to a certain amount per year....

derryb · April 2, 2011 3:52AM

<< How did you roll a 401k into Roth IRA and not regular? Contributions to a Roth are limited to a certain amount per year.... >>

Contributions to all retirement plans have limits. Rollovers into a Roth from another retirement plan are not limited. They are however taxed as income when rolled over because the contributions were taxed deferred. Thereafter they, and their gains are tax free. If you feel you can put the rollover into something that will have great gains, paying the taxes at rollover time is a no-brainer. If you just leave it in the non-Roth IRA it will eventually get taxed when you start withdrawing and tax rates will more than likely be much higher by that time. Why not make tax free money in a Roth? The big drawback in the rollover is the huge quarterly estimate tax bite. In my case I was able to make the withdrawal from one (the rollover from a federal employee Thrift Savings Plan) include cash to me which I used to pay the taxes. Of course they also withheld taxes on the cash portion. Anyone here nearing federal employee retirement that would like to roll their TSP into a Roth, feel free to PM me, it's not as simple as it sounds.

Rollovers from non-Roth retirement plans into another non-Roth retirement plan are not taxed when rolled over (the money was taxed before it went into the IRA).

QE3 Anyone?

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