It appears the markets and most economists welcome the fact that the FED is reducing QE3 from $85 billion per month to $75 billion. It is good news, and long overdue.
Had the elected leaders of the world been more responsible it could have happened sooner. BUT let's not forget the fact that $75B/month is still almost a trillion $ per year!
I would be surprised if QE will be entirely off the table in less than 6 months to a year. Is the economy really that strong? or is this move really a PR stunt on by the FED? Remember, this is more like the Captain of a ship who just told the passengers that things are improving - we are only pumping 75000 gallons instead of 85000 gallons to stay afloat...
1 comment:
good analogy.
i think it will all come crashing down.
(see below)
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