Sunday, September 16, 2012

WashPost asks: Why Are Stocks Soaring?



Gee, thanks for nothing but a warm feeling in a dark suit, Fed!

Meanwhile, here's why stocks are soaring ... most people have no idea of the details of what actually happens in QE.  Including which bonds are being bought from whom, and what REAL impact it has.

QE dynamics one more time- it’s about price, not quantity

see also
QE2 Two: Equivalent to Issuing Bills in the First Place

and
QE
"QE in the US has again done what it’s always done- frighten investors and portfolio managers ‘out of the dollar’ and into the likes of gold and other commodities."

and
QE and the dollar

and
PIMCO admits Fed’s QE2 Failed to Boost U.S. Spending

and
QE2: Captain, your ship is sinking

and
QE and the term structure of rates

and
Central Bankers comment on QE

and ... (the list could go on, but that should suffice for anyone willing to read any of these posts anyway).

1 comment:

Joe said...

Hi, I drew out the T accounts of how I think this round of MBS buying works. If anyone would check it out and comment on its correctness, I'd greatly appreciate it! http://sites.google.com/site/jahufford/qe3/