why martis is worried, page-121

IMHO there can ne no overt QE3. It will be in their best interests to spread rumours and rhetoric re: QE3 but it won't happen.

S&P have fired a shot over the bow, and so have China (see revaluation of the Yuan today). Further QE will be met with further downgrades which will defeat the purpose of the QE - ie to inflate out of trouble.

There will be no QE3 - the political and financial risk to the US is now realised by the market.

I believe that we will have massive deleveraging over night and over the coming week.

Doc