GOLD 0.51% $1,391.7 gold futures

multi-trillion plan to save the eurozone , page-11

  1. 24,765 Posts.
    "SP,

    Have you wondered why Ben hasn't already brang on QE3 but did a twist instead?"

    Reply:

    Bernanke imo knew by adding the word "significant" in "significant downside risks" to the US economy and then simply doing a "twist" by selling near dated bonds and putting the money into 10 year bonds that the markets would get smashed because this is not creating enough liquidity - in fact it is not creating any additional liquidity.

    In my opinion if the markets are getting smashed and screaming for a QE3, then it is politically acceptable for Bernanke to bring on QE3. Bernanke wants to be begged to bring on QE3 - to then be seen to be doing the right thing to save us all.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.