Is QE3 coming and when?

[fatsmahoney]

I have a feeling its coming just before the election to make the economy and stock market look good for Obama.

 

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[agme]

I have a feeling its coming just before the election to make the economy and stock market look good for Obama.

Call me stupid, but should that make PM's go up or down?

 

[Marchas45]

QE3 is coming on the next big meeting on Sept.13th according to a good friend of mine. If you notice the news media are talking about it now getting us ready for it as before they where quiet. Mr Ben is going to introduce it next month and watch silver and gold climb. Keep Stacking.

Here's a good video from one of my favorites Peter Schiff.

 

[agme]

Thanks Marchas.
Keep stacking! lol

 

[jim4silver]

Call me stupid, but should that make PM's go up or down?

Any more QE will be bullish for PMs and stocks, but bearish for the dollar (all in theory of course). More QE is seen as inflationary because liquidity (more digital dollars to be loaned out) are basically created out of thin air. This creates a fear of future inflation and is thus good for PMs and bad for the dollar. Where stocks come in, is that many believe this newly created money will find its way into the stock market.

It is sad, but on the cable financial programs I sometimes watch it seems that all they talk about is more QE to stimulate the stock market, not things like more profits, healthy economy, etc. Instead, they all seem to keep counting on more QE to keep the stock market movement going. Even now saying more QE is "priced in", meaning it is expected by the markets. Thus, if they don't announce more definite QE during the Fed's next meeting or two, I expect there will be a big stock sell off. However, I believe more QE will be announced before the end of September. Many think Bernanke will announce more QE at the Jackson Hole speech next Friday (Aug 31). It was at the same place in 2010 he hinted at QE2, so the pundits seem to hope he will mention it there next week for QE3.

I don't think in the next 20 years we will have what is considered a healthy economy, where debt is dropping and savings are improving along with jobs and productivity. I hope I am wrong about that call though.

Jim

 

[Marchas45]

Good post Jim, I for one don't see the QE3 going into the stock market but to the Banksters like it did the last time to bail them out. Hope I'm wrong but I don't think so. Of course just my opinion. Charlie