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More on FOMC Minutes: It looks like the doves won the debate, says Fed-watcher David Jones,...

More on FOMC Minutes: It looks like the doves won the debate, says Fed-watcher David Jones, reckoning QE3 just got a lot more likely at the September 12-13 meeting. "Many members judged that additional monetary accommodation would likely be warranted fairly soon."
Comments (19)
  • Wm the Shrubber
    , contributor
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    Except that data has been stronger than expected since the FOMC meeting, market is banging against yearly highs, Brent is back above $114/bbl, corn and soy are parabolic. Fed has no latitude for more QE here. It is just smoke and mirrors, hope and fantasy!
    22 Aug 2012, 02:22 PM Reply Like
  • Dana Blankenhorn
    , contributor
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    I don't think so. Growth is still slow. I think the Fed wants to give Europe a chance to make the first move. The demonstration of weakness -- and the statement -- seem to be for their benefit.

     

    And European action would be as bullish for us as for them.
    22 Aug 2012, 02:24 PM Reply Like
  • Joe Razorback
    , contributor
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    I think we see a pop later today? Any buyers?
    22 Aug 2012, 02:25 PM Reply Like
  • Swass
    , contributor
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    Sounds like a bunch of Draghi's sitting around a room and posturing. I don't think they or the market is going to like the results of another attempt at QE. That would be the overdose that kills the Fed.
    22 Aug 2012, 02:29 PM Reply Like
  • pollyserial
    , contributor
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    This is going to melt up for a few days but it won't end well.
    22 Aug 2012, 02:29 PM Reply Like
  • demiurge
    , contributor
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    Hard to agree with Jones. It seems more likely that the FOMC is choosing to exploit the intimation of further action as long as it produces the desired effect. There is very little evidence of impending deflation, equity markets are soaring, and recent macroeconomic data is at worst lackluster.

     

    Bernanke has been explicit that they view monetary policy in terms of stocks, not flows. Given our current situation the only immediate argument for further QE is competitive currency devaluation if other central banks devalue their currencies in concert.
    22 Aug 2012, 02:35 PM Reply Like
  • Spin
    , contributor
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    Rumors and hope from the FOMC should be enough to boast the market in the short term, which will allow those GS clients still long to sell into the rise.
    22 Aug 2012, 02:35 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    They will QE...who else is going to buy our 1.1 trillion deficit....and who is going to buy the election...JPM canĀ“t now....
    22 Aug 2012, 02:44 PM Reply Like
  • wapiti
    , contributor
    Comments (694) | Send Message
     
    FED induced MELTUP Thanks Uncle Ben!
    22 Aug 2012, 02:49 PM Reply Like
  • SoldHigh
    , contributor
    Comments (979) | Send Message
     
    If the Fed wants growth, then they need to advocate for Obama and his anti-business policies to leave.

     

    Rates are already dirt-cheap - it's the uncertainty that comes with a hostile occupation regime that's keeping the economy weak.
    22 Aug 2012, 02:52 PM Reply Like
  • SoldHigh
    , contributor
    Comments (979) | Send Message
     
    Throw me all the free cash you want - but DON'T expect me to HIRE when my hands are tied by an extremist anti-business president who tells people to loathe those who provide their jobs!
    22 Aug 2012, 03:40 PM Reply Like
  • Kapitalist
    , contributor
    Comments (10) | Send Message
     
    SoldHigh, Well said. The hostile environment, uncertainty, and short-term band-aid fixes drive main street decisions.
    22 Aug 2012, 03:59 PM Reply Like
  • Dana Blankenhorn
    , contributor
    Comments (5674) | Send Message
     
    I think we can get new entrepreneurs. Those who refuse to invest and do business will be left at the starting gate, and broken on the wheel of competition.

     

    Soldhigh acts like there's some sort of union of businessmen who can uniformly decide to go on strike. There isn't.
    22 Aug 2012, 08:19 PM Reply Like
  • Poor Texan
    , contributor
    Comments (3528) | Send Message
     
    Yes, after all its the government that creates entrepreneurs, so nothing to worry about.
    22 Aug 2012, 11:29 PM Reply Like
  • Dana Blankenhorn
    , contributor
    Comments (5674) | Send Message
     
    It's opportunity that creates entrepreneurs and anyone who doesn't think there's opportunity in this economy isn't an entrepreneur.
    23 Aug 2012, 08:23 AM Reply Like
  • Poor Texan
    , contributor
    Comments (3528) | Send Message
     
    There's opportunity for entrepreneurs in every economy. But the government doesn't build that vision.
    23 Aug 2012, 10:37 AM Reply Like
  • Dana Blankenhorn
    , contributor
    Comments (5674) | Send Message
     
    Yeah, like the government didn't have anything to do with the Internet you're using now.

     

    Ideology didn't build this economy. People did. And some of them worked for the government. From DeWitt Clinton through Dwight Eisenhower, we've depended upon government infrastructure to help private enterprise prosper.

     

    Ignore that at your peril next time you're on the Interstate.
    23 Aug 2012, 11:32 AM Reply Like
  • pollyserial
    , contributor
    Comments (1034) | Send Message
     
    Dana, those aren't popular opinions around here and I respect your willingness to stick up for them. I completely agree. I believe we should all be grateful that we live in a country that has superior infrastructure and offers us security to pursue our lives, and we have to be willing to pay for that or our quality of life will deteriorate even if our bank account grows. I've traveled in deeply messed up parts of Africa and Latin America and I don't want that for my children or myself.
    23 Aug 2012, 09:19 PM Reply Like
  • Dana Blankenhorn
    , contributor
    Comments (5674) | Send Message
     
    I don't know how small a minority I am any more. I sort of assume I'm in a minority with my political views here at SA, but increasingly I read people, like you, who are on the same side of these issues.

     

    There are two schools of investment, growth and extractive. We have both here.
    27 Aug 2012, 12:30 PM Reply Like
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