Looks like we have a rate rise by the fed on tap this year. Should start to get priced in on monday
Yeah, no. QE4? Yep.
I'm expecting both, with unlimited Keynesian hubris on the side.
This is a confidence game, so with sufficiently disorganized alternatives, the Fed may be bold and anyway they are not afraid of Bitcoin... at all.
Indeed. And for those that are still counting it will be QE5 next.
http://useconomy.about.com/od/glossary/g/Quantitative-Easing.htmQE4 was a re-bailout of the Treasury market for new issuance plus a much needed cash infusion for the primary dealers (banks)
QE3 was a re-bailout of the MBS investors (re-bailout of Fannie & Freddie) and banks
QE2 was a bailout of the Treasury market, FDIC, plus domestic and foreign banks
QE1 was a bailout of the MBS investors (bailout of Fannie & Freddie) and the banks
TARP was a bailout of the merchant banks (Citi, Squid etc) plus AIG, car-makers and (why not?) foreign banks
the time to have raised rates was during the towering stock market advance of the last few years before what appears to have been the peak on May 19, 2015. now that we have a Dow Theory non-confirmation on the board which looks to confirm the latter half of this year, it would be highly unlikely they raise interest rates into the the teeth of that as that would only accelerate an ongoing plunge.
it will be interesting to see how they handle this one but i doubt it will include a raise in rates.