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Fed ‘Backed Into A Corner,’ Low Rates And QE Here To Stay

Thursday, November 7, 2013 - 8:47 PM
Another fairly scathing review of QE; this time from finance.yahoo:

     "Four years and a few trillion dollars later, and the jury is in, so to
      speak, on the efficacy of what has been called "the greatest experiment"
      in the history of monetary policy.

      Quantitative easing doesn't work.  At least not towards achieving either
      of the central bank's two core objectives; full employment and price
      stability."

Read more:
9
cumuluscumulus336 posts since
Jan 16, 2010
Rep Points: 1,576
1. Friday, November 8, 2013 - 7:48 AM
From the article:

"Adding to his belief that the Fed will follow an extra dovish route is the fact that at least two Fed governors in the past week have begun talking down the current policy unemployment target of 6.5% as too high, and perhaps not being as reflective of an improving economy as once thought."

"We have now reared an entire generation of investors that all they really know is to buy stocks because of monetary policy," Belski observes, noting that his own price target for the S&P 500 went up to 1,900 the moment the Fed took tapering off the table in September."
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There is now increasing speculation that the Fed may not even begin raising rates until 2016 or 2017.

Goldman Forecasts Fed Will Lower Rate-Hike Threshold In December To Counter Taper Tantrum | Zero Hedge

In one of my posts, fairly long ago, I went out to 2019 as when to expect the first meaningful rate rise from the Fed.
9
ShorebreakShorebreak2,615 posts since
Apr 6, 2010
Rep Points: 14,182
2. Saturday, November 9, 2013 - 9:44 AM
And what are considered "Low Rates" any longer??  Look how excited Ken gets when he can find and post the 2% rates now for us.  2% seems to be our new "high" rates for some of us.  I am not concerned with what they call them any longer, high, low or whatever.  As long as I can still find what I need for my purposes, I can survive financially a little longer. 
3
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
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