Market Currents
QE3 may be "QEternal" to some, but perhaps not "QEnough" for others, quips CNBC's Jeff Cox....
-
Monday, September 24, 2012, 6:13 PM ETQE3 may be "QEternal" to some, but perhaps not "QEnough" for others, quips CNBC's Jeff Cox. Morgan Stanley's Adam Parker agrees, saying that "although QE3 is open-ended, the currently announced pace and program of purchases is much smaller than previous QE programs," and "will likely be insufficient to significantly boost equity markets." Parker says he wouldn’t be at all surprised to see the Fed dramatically augment this program before year-end.
Other date
Latest Macro Articles
This news story has 4 comments:
Election day, 6th November. I guess we'll need to see some weakness from around this time to the end of the year to help make the case for further QE.
Even if another round of QE moves the employment needle (which it hasn't yet to a significant degree), it's a very poor transmission mechanism because it only potentially benefits a very narrow segment of the long term unemployed. Hell, I wish we could all be very well paid construction workers... but even construction workers on average are not that well paid. And as is probably more relevant, I wouldn't be qualified.
The Fed is using blunt tools to solve an employment problem that's inherently much more complex that it appears. We are going to be figuring that out very soon as the transportation and financial sectors (for starters) start laying off people.