Why there will be QE4

Justacommeman

QE3 is in the bag. The Fed and the White House are all in and they can't turn back now. Austerity is not an option for them. They are boxed in. I'm sure they believe that the US can not afford "another" recession at any cost. The "jumping off points" are much worse then they were a few short years ago at the start of the "last" recession. Unemployement for instance would "begin" this new recession at well over 9% for starters..........It is what it is. Pretty it is not. Hope I'm wrong. MJ

DoubleEagle59

Put another way:

"Why there will be QE4".....

because 4 comes after 3.

stevek

It frightens me what the White House may be planning - it really does.

cohodk

There are 3 ways out of this..

1. Time---let the excesses wear off. Let austerity take hold. Result--A Japanese type economy.

2. QE3, QE4, QE5, ect. Continue to inflate the debt bubble. Result--Global depression.

3. Massive infrastructure project to reduce need for imported energy. Build coal gasification plants or build out natural gas infrastructure. Result-Trillions of new debt, but also millions of new jobs and trillions of wealth staying at home. The debt would be paid off in just a few decades via cost savings. This would also destabilze the Middle East and the oil rich African countries. China and the ME would be bedfellows.

Justacommeman

I agree, I agree and I agree.

I've been onboard for intrastructure "project" for a long time. Count me in. Our infrastructure is crumbling and it needs to be done regardless. Start now and get on with it already.

MJ

MsMorrisine

let austerity take hold?

what austerity?

1 trillion in cuts over 5 years? That's not austerity. That's just less of more of the same.

FistFullOfDollars

4. WWIII

This is the last thing I want to see happen but I was taught history does repeat itself

Baley

No, history does NOT repeat itself.

However, sometimes, it does Rhyme

Justacommeman

Interesting-----

"Despite three dissents--the largest number since 1992--the committee adopted an even easier policy stance than expected," Goldman Sachs' economics team wrote in reaction to the FOMC statement. "First, the committee now anticipates that rates will stay on hold 'at least through mid-2013.' Second, the committee effectively signaled an easing bias, saying that it is prepared to employ additional easing steps as appropriate."


The market liked it for at least an hour. Sometimes it takes a day or two to really see the true reaction. Regardless, what a headfake at 2:15pm. Those were not trees being shaken it was more like the whole forest. MJ

Wolf359

Gold went up $20 in about a minute at 2:15pm.

Ahhh what the future holds. Mixed emotions