Bernanke Rally

Discussion in 'Economics' started by lionfish42, Jan 27, 2011.

When QE2 Ends?

Poll closed Feb 21, 2011.
  1. QE2 ends, the market sells off!

    0 vote(s)
    0.0%
  2. QE3 comes, the market stays up!

    1 vote(s)
    100.0%
  1. Do you think the equity markets continue to rally because Bernanke's QE policies?


    I noted that in 2009 the market rallied as soon as QE took off. Then in 2010 when QE was over we saw a mid-year sell-off and volatility. As soon as QE2 was rumored and confirmed the market was back in rally mode.


    I guess thinking about it from an institutional side, the Fed is making treasuries unattractive (by setting rates and buying them). Thus creating a bubble in treasuries.

    So if you were an institution that had access to the window, low, rates - why not buy equities. The government has proven that they will bail you out (TALF, TARP, Discount Window).

    So what happens when QE2 runs out? equities sell off? Or is QE3 coming?