qe2, page-7

that could work 10c, although its going to be so so volatile, IMO, we will see some very very big moves closing in on the fed, this is a huge event for currency markets and the like

I will be staying away for sure, but, my expectations are that the fed will get cold feet, and lessen the size

when you think about it, the stock market was lingering around 10k, looking very fragile, on the verge of possibly a fall well below 10k and a double dip scenario. The fed had to do something, and it did. They came out just as it was looking like dropping like a stone below 10k, and announced plans to begin QE2

This took markets to where we are now. IMO, the fed sees the stock market as almost as important as houses...it makes people feel richer, although paper gains, people feel more confident, get out and spend more and when locking in profits, boosts wealth overall and i think this is the feds strategy


Now that the markets are just north of 11k, i would not be surprised to see a 100bn per month for 3 months, then re assess plan for QE2, well below expectations, but still seen as doing something, this will probably dissapoint markets and we may see a triple digit sell off, maybe 3-5% over a few days, but this will still have us around 10,700 or thereabouts....a good support level, and better than where it was several months ago

this is just my thoughts only...but if the fed do come out and announce a half trillion or more package, then my god, America are going to be so screwed....i would def go and buy euros, aussie dollars, swiss francs, canadian dollars, because the us dollar index will fall below 70, and head for 50 if they go overboard here