[MadMarketScientist]

so we all know the Fed's "quantitative easing" is coming to an end June 30 ... how are you going to trade it? i think the following is going to happen:

- dollar rises
- yen\euro drop
- commodities drop
- interest rates rise ...

- then QE3 will start again to lower the rate and the exact opposite will happen

MMS

[Tams]

USA will print more money...

and the economy will improve,
and everybody will be happy.

let the grandchildren's grandchildren worry about the debt.

[MightyMouse]

Bernanke has already committed to "reinvesting proceeds" and stating that he doesn't want to have the economy go "cold turkey". It all means that he is not going to stop printing.

"Cold turkey" is usually used with terms like Junkie or Alcoholic. I would generally not use the term "cold turkey" in the same sentence with anything healthy.

In this case, I believe he is not ready to put away the smoke and mirrors to expose what is really there. So, we will hear about qe3 by September.

I plan to only trade ES and I will try to get a piece if it if it goes up and a piece of it if it goes down. If it goes nowhere, then it will probably get a piece of me.

[MightyMouse]

Originally Posted by Tams »

USA will print more money...

and the economy will improve,
and everybody will be happy.

let the grandchildren's grandchildren worry about the debt.

The US would never try to do that. That would be irresponsible. However, they will try to export our fiscal irresponsibility to other greedy dictatorial puppet governments that have been sponsored by the US and have them stuff it onto their children's children.

There are only a handful of times in history where governments have paid back debt. Hard for me to believe that we will be a part of that handful.


MM

[thalestrader]

QE2 will likely not end in June. Bernanke & Co. only stated an intention to purchase 600B by June - he never said 600B was the limit, or that June would be the end.

The real problem is that high gas prices are now pinching consumer and small business spending. The last recession, in my opinion, was the result of $3-$4 gasoline, and not the financial banking crisis. The financial crisis would have been averted or at least delayed had the consumer not been beaten by the need to divert discretionary dollars into Energy company coffers. My guess is that the market will top sometime between September-February, with another full-blown recession to follow.

However, for now, we are in a Bull market, and I will trade it accordingly until such time as price indicates the trend has changed from bull to bear.

Best Wishes,

Thales

[SIUYA]

QE2 is still going????

[MadMarketScientist]

If he doesn't stop the dollar is going into a freefall ... what are the foreign creditors going to do? What are the American people going to do if super-inflation hits? (inflation is already happening ...)

I don't see any good scenarios?

Originally Posted by thalestrader »

QE2 will likely not end in June. Bernanke & Co. only stated an intention to purchase 600B by June - he never said 600B was the limit, or that June would be the end.

The real problem is that high gas prices are now pinching consumer and small business spending. The last recession, in my opinion, was the result of $3-$4 gasoline, and not the financial banking crisis. The financial crisis would have been averted or at least delayed had the consumer not been beaten by the need to divert discretionary dollars into Energy company coffers. My guess is that the market will top sometime between September-February, with another full-blown recession to follow.

However, for now, we are in a Bull market, and I will trade it accordingly until such time as price indicates the trend has changed from bull to bear.

Best Wishes,

Thales

[Stock Trader One]

Originally Posted by Tams »

USA will print more money...

and the economy will improve,
and everybody will be happy.

let the grandchildren's grandchildren worry about the debt.

This looks like the right analysis