Higher Tax levels, Higher Sales Tax, Higher Cost of Living Tax on Gas, Food, This will be the first phase of QE3. Game over if your W2d.
here come the same idiot policies and discussions and complaints and overly simplistic idiologs spousing the same crap that 8 years of their ranting, got us into this mess. who knew, that there were millions of jobs, not being created during the last 8 year administration, almost 3 years before it ended, and that loss continued. (FY'05 - FY'08) you don't just turn around momentum like that, without major social engineering the likes of which were done during the Great Depression, with a Public Works Administration.... On just about every news interview of the jobless at the State Employment Agencies, you see real people saying the same thing: "they bailed out the corporattions, now how about turning attention directly on the citizens and bail us out with a job". can you hear the whispering wind?, its saying something like DJIA 4,000
QE3 is probably inevitable, at this point. The only way to avoid QE4 is to have voters start insisting on fiscal responsibility from their Congress Critters, which means either much higher taxes or much less spending on Social Security and Defense. If voters aren't prepared to do that, the Fed has no choice but to keep QE'ing away.
What I find interesting is in my neighborhood they knocked down two small businesses that have existed for decades. They bought out the owners. The employees got laid off, everything sold off and then months later I find out they are building two banks where those locations existed. I am seeing quite a bit of banks sprouting up all over the place. So it seems some of that QE money is being put to use to build more banks.
Economy tanked because of QE2. Implement QE3 without any changes would much worse than doing nothing. Even Bernanke understands it now. And I can't think why ET crowd can't Let's say they implement QE3. Oil goes to $200 in 6 months. How would it help? They might print money if they can be sure price of food and oil won't rise. I believe threshold is around $80 for oil. If it goes below they might print some more
Good response. However I am looking at it from another view point. Not just to boost the economy but to pay off debt. As the US has hit the debt ceiling the only way they will be able to one pay for things is through QE and two more importantly repaying debt is through QE. Either way it is not really a decision in my opinion but a matter of necessity for the above reasons. It is just a matter of time before they have to resort to printing money for one reason or another.