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Showing posts from March, 2011

Post Your Predictions. When Will QE End and Securitization Begin?

We know that QE has been holding the economy together, or at least the fat cats. Low interest has allowed the government to spend and the big banks to make a massive amount of money by investing in safe treasuries. However, the effects of QE are obvious, worldwide inflation, at least of commodities. Now the Federal Reserve has no one left to buy US bonds except for themselves. They want a bubble of some sort, probably in real estate, in order to stop or pare back QE. The question remains, will they get their securitization bubble or will the Fed need to maintain a really destructive QE in the face of world unrest over commodity price rise? Maybe we need a little deflation in order to lower the cost of living for everyone the world over. Now that we have oil dislocations because of Mideast unrest, it is even more important that we not destroy the dollar and pursue QE forever. Maybe the rich need to take a hit. How that would affect mainstreet is anyone's guess. I hope mainstreet do…