Will QE3 come tomorrow?

[brandon]

It's widely expected that the fed will announce QE3 tomorrow afternoon. I have my doubts because stocks are near all time highs and with the election looming the fed might not want to seem political. What do you guys think? Do you think QE3 is already priced into commodities, or will we see a jump in prices if they announce QE3? Conversely, will metals tank if they don't announce QE3?

[RickyJ]

I can't see them not doing it. I think they have waited as long as they could.

[The Goat]

I don't see them doing it yet. and yes medals will take a hit if they don't, if they do medals will still jump though.

[brandon]

I can't see them doing it either, but most wall street pros seem to think it's coming. I'm inclined to side with them. Where's cowlesy at? We need an insider opinion!

[ninepointfive]

just one more month, and they can do whatever they want

[awake]

Here is a fact: it won't be calld QE3. It will have another name.

[brandon]

The financial media has already dubbed it QE3 so regardless of what the fed calls it that name will stick in financial circles. The MSM might call it something different though.

[jtstellar]

obama got a bump from his convention.. everybody knows it's fed's undeclared mandate to help a president get re-elected. since printing money is controversial thanks to us, why would they risk this unnecessary gambit when they already have a minor lead? they can still postpone 0% interest rate and continue to talk up future QEs without actually doing it. it's not going to occur unless obama starts losing big and needs a hail marry pass

[puppetmaster]

obama got a bump from his convention.. everybody knows it's fed's undeclared mandate to help a president get re-elected. since printing money is controversial thanks to us, why would they risk this unnecessary gambit when they already have a minor lead? they can still postpone 0% interest rate and continue to talk up future QEs without actually doing it. it's not going to occur unless obama starts losing big and needs a hail marry pass I disagree as the fed is golden no matter who is elected and bernake is still in with either BS president they elect.

[jclay2]

Yes QE3 will come. The Ben Bernank will not put his job at risk. He will do whatever it takes to keep Obama in. Expect QE3 or whatever they call it to be announced tomorrow. My expectations (as a clerk in the short term options market) is that the Fed will announce some type of program to buy mortgages and treasuries (more weighted toward mortgages). I think that the size of the program is definitely in question. Given how much the fed is already involved in these markets on the long end of the curve, they will probably be squeezed. This makes me think that the size of QE announced will be either small or that they might just announce some type of open ended QE with a moderate $/month. Also, I do think that they will extend the maturity for 0 interest rates into 2015 as opposed to the current late 2014 date. Right now eurodollar futures (short term interest rates in the future) for september 2015 are trading just 45 basis points above 3 month Libor. So, the extending of 0 interest rates into 2015 is for the most part priced in. Given that the 10 year is trading 23 basis points above its low (1.39 I think). I think this is evidence the fed will favor mortgages or nontreasury asset purchases. We will see what happens though.

[fr33]

It has to happen eventually if they want to continue this sham of a system.

[ninepointfive]

They will keep this system going for as long as possible - expect inflation - and invest your dollars for what they are worth as soon as possible!

[brandon]

So they basically announced an indefinite version of TARP with no government oversight or accountability. 40B a month to buy mortgages from banks.

[headhawg7]

So they basically announced an indefinite version of TARP with no government oversight or accountability. 40B a month to buy mortgages from banks.Only half a trillion a year!! What is half a trillion here...half a trillion there?

[youngbuck]

Only half a trillion a year!! What is half a trillion here...half a trillion there?

Yep, exactly...

TRILLION.:eek::confused:

[Lucille]

http://image.blingee.com/images18/content/output/000/000/000/773/730982900_367911.gif


http://www.youtube.com/watch?v=6_9blTxwFeA

http://www.zerohedge.com/news/live-webcast-politician-bernanke-explaining-open-ended-qe-two-months-election

http://www.zerohedge.com/news/guest-post-psychoanalyzing-fed

[BenIsForRon]

So they basically announced an indefinite version of TARP with no government oversight or accountability. 40B a month to buy mortgages from banks.

Yep, QE is the new normal. They want the slowest, most excruciating crash of the housing market they can muster. I can't believe Austrians are the only economists that can see this is a horrible idea.

[HOLLYWOOD]

Where is THE FED getting the money?

BTW: RON PAUL on FOX Business interviewed on FIAT PAPER money FEDERAL RESERVE BALLOON.

4-4:30PM EST 1-1:30PM PST

[Seraphim]

This is not QE3.

It's QEn. There is no end date. It's EXPLICIT, perpetual QE until The Fed says otherwise.

QE is now officially The New Normal.

[jclay2]

This is not QE3.

It's QEn. There is no end date. It's EXPLICIT, perpetual QE until The Fed says otherwise.

QE is now officially The New Normal.

Yes!!! This was definitely one of the most scary fomc meetings ever. The fact that Bernanke just explicitly stated he "will print no matter what" is pretty much an endorsement to buy gold without any gold.