Thursday, December 19, 2013

THE FED IS STILL PUMPING

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:

  1. good analogy.

    i think it will all come crashing down.

    (see below)

    ReplyDelete