How will the markets react. It seems that the markets are expecting this huge printing of dollars and markets are pricing stocks expecting a mega QE2 and not on actual fundamentals.
Doesn't come??? Do you really think bubble ben bernanke is going to really do that to wallstreet and the bulls. Everyone wants and needs QE2 to support the next 3000 dow points to the upside. QE2 is the next catalyst for the market, without it the markets and economy are pretty much worthless.
The question you should have asked in the poll is: do people expect an actual QE2? If that number is high, then you know what to do.
"Nearly 93 percent of the 70 respondents, including economists, fund managers and traders, believe the Fed will boost the size of its portfolio, up from 69 percent in the survey two weeks ago." http://www.cnbc.com/id/39606951
If anyone remembers how the fed acts, did they issue a bailout pre-Lehman or pre-Bear? Of course not. shit hits the fan, then they ease. Why anyone can't follow the order of things is beyond me, because the Market is doing precisely that- ignoring the fact that the fed waits until late in the game to ease.
I think the real question is how much of the expected QE2 is priced into the current run up in the market. I mean how much should the market rise with $1trillion of purchase? How much should the market rise with $250billion?