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Though the Fed didn't mention a target level for unemployment, Bill Gross suggests the bank has...

Though the Fed didn't mention a target level for unemployment, Bill Gross suggests the bank has 7% in mind, and will buy MBS "until the cows come home." Recently making news for slashing his Treasury holdings (so far so good), Gross suggests "real assets ... gold ... a house." (see "QE forever")
Comments (5)
  • Lint
    , contributor
    Comments (391) | Send Message
     
    Middle-income savers will continue to get crushed. what a sad state of affairs.
    14 Sep 2012, 10:52 AM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    "...until the cows come home" or until Bernanke joins the ranks of the unemployed. Hopefully, that day is coming soon for him.
    14 Sep 2012, 11:12 AM Reply Like
  • petten
    , contributor
    Comments (128) | Send Message
     
    Nope. The move helps the incumbent, who will reappoint him for sure.
    14 Sep 2012, 04:22 PM Reply Like
  • kmi
    , contributor
    Comments (4305) | Send Message
     
    Really? Seems to me Ben set the ball rolling cause he's ready to get out of the business, and figures open ended QE was a safer bet than leaving the door closed on his way out....

     

    The question will be, who will end QE when Ben is gone, and what will it take...
    14 Sep 2012, 06:37 PM Reply Like
  • J 457
    , contributor
    Comments (952) | Send Message
     
    2 trillion and 2mm jobs later the unemployment is still above 15%, the debt has increased to 16 trillion, and growth is contracting. If QE 1& 2 & 3 didn't;t work, why would buying more MBS do anything more this time? Especially when rates are at historic all-time lows already. What will happen is oil will pop, gas price will jump, and any extra money that could have been used to boost growth will instead be used to pay for rising gas and food prices. $2 trillion for 2mm mediocre jobs is $1,000,000 per job. I want to be optimistic, but I foresee tough times ahead, at least until the country faces its economic reality. You can't spend $1.5 trillion more than you collect each year and not expect negative consequences.
    14 Sep 2012, 11:56 AM Reply Like
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