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Markets are killing the chance for QE3 by frontrunning the action (continually bouncing on hope...

Markets are killing the chance for QE3 by frontrunning the action (continually bouncing on hope of Fed action). The "liquidity put" will only get triggered at substantially lower levels, says Citi's Mohammed Apabhai. He sees 1,285 in the S&P as a key technical level (S&P is currently 1,325) and additional QE coming only if the market were to decline 12% from here.
Comments (5)
  • TruffelPig
    , contributor
    Comments (4064) | Send Message
     
    Those people are a joke saying this. The Fed is looking at economic numbers, unemployment etc. Do these joksters really think the S&P is a good gauge for the economy in the US? There are better parameters and they look bad. Operation twist was extended at S&P 1350. Wasn't that too high too? LOL
    22 Jun 2012, 07:31 AM Reply Like
  • QuoVadimus
    , contributor
    Comments (8) | Send Message
     
    Yep... this is almost an idiotic statement. If the Fed decided to act on something, it's based on the economic numbers such as manufacturing, unemployment etc. S&P number is a reflection of the economic data plus speculation. Therefore, the Fed will not use S&P number to decide whether QE3 should be initiated or not. My guess is ECB will announce their easing in July, then the Fed will do QE3 in Aug.
    22 Jun 2012, 08:30 AM Reply Like
  • TruffelPig
    , contributor
    Comments (4064) | Send Message
     
    Your time frame could be correct on the easing part. Easing will come.
    22 Jun 2012, 08:33 AM Reply Like
  • cszkalak
    , contributor
    Comments (22) | Send Message
     
    The timing has a lot to do with the outcome of a rain-dance. The election in November may be the most significant Fed datapoint. Ben the Beard will want a positive 401K experience before the worker bees go to the polls.
    22 Jun 2012, 09:20 AM Reply Like
  • NumberOne1Azfan
    , contributor
    Comments (8) | Send Message
     
    What a sad, sad story
    22 Jun 2012, 09:26 AM Reply Like
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