Barclays' Joseph Abate Muses: It's Not The Size Of QE2, It's How You Use It

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Tue, 08/10/2010 - 09:58 | 512433 LoneStarHog
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It's Not The Size Of QE2, It's How You Use It -- Oh Boy! -- Another MCC, "Faster, Deeper, Harder".
Tue, 08/10/2010 - 10:34 | 512522 rapunzel
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be F O R E  warned, i suppose.


Tue, 08/10/2010 - 10:01 | 512440 Chartist
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All I know is the FXY is lower today.....I think someone is buying this selloff and I suspect we'll see a higher market this week.

Tue, 08/10/2010 - 13:31 | 512930 DavidC
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What sell off? The Dow is still around the 10,600 level and FTSE still between 5350 and 5400. I'll call it the start of the sell off when the FTSE is below 5300 and the Dow below 10,500.


Tue, 08/10/2010 - 10:01 | 512442 Traianus Augustus
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And not one mention of KY usage!!!

Tue, 08/10/2010 - 10:02 | 512444 Amsterdammer
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This from a Credit Suisse's analyst: "QE works via five routes:

* (1) It pushes up asset prices (holders of government bonds or other bonds have cash and are forced to make an asset allocation decision in an environment where real bond yields are artificially low). Indeed, Charlie Bean, Bank of England Deputy Governor, highlighted that this was the key rationale behind the MPC’s QE in 2009.

* (2) The rise in asset prices has a wealth effect on the consumer and corporates (it becomes more expensive for corporates to buy, so they build!);

* (3) Lower real bond yields/ credit spreads help to improve housing affordability;

* (4) Low bond yields give governments more discretion on fiscal policy and might encourage a looser fiscal policy (as otherwise they might be forced into premature tightening by high and rising bond yields)-it is worth noting that in the last 3 weeks the US have de facto eased fiscal policy slightly as a result of lower bond yields (we saw $32bn of further unemployment benefit being renewed and more recently $26bn of help to states/local governments);

* (5) Weaker currency. A weaker dollar in effect will export US monetary policy (if the Yen were to for example strengthen dramatically further, then the BoJ would probably resort to more aggressive QE).

Tue, 08/10/2010 - 10:31 | 512515 SteveNYC
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We should focus the entire US economy on this wonderful phenomenon, "the printing of money". Heck, with all these benefits, it seems to me that's pretty much all we'll need to do forever more!

Perhaps we can even export this amazing phenomenon, sell it as part of our "service" economy?

This CS guy should be shot......

Tue, 08/10/2010 - 12:11 | 512774 AccreditedEYE
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++ Amen brother.

Tue, 08/10/2010 - 10:03 | 512446 lizzy36
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If size doesn`t matter why are there no 3 inch dildos?

Tue, 08/10/2010 - 10:23 | 512491 The Rock
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LOL. ... Just 3in pricks.

Tue, 08/10/2010 - 10:29 | 512504 Miles Kendig
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Luck of the Irish is en Vogue at Barclay's... and wow..  glass with no bowl and it can still smoke some

Tue, 08/10/2010 - 10:40 | 512537 rapunzel
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miles miles miles.

never knew. and to think my master glass teacher wouldn't let me blow glass bongs, he sure of hell, never mentioned this sort of object to blow. i wonder how it works, like a finger?

Tue, 08/10/2010 - 11:18 | 512585 Miles Kendig
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naw  It's the six tongue tips on the end rotated at the direction of the user via the channel created by the guide n slide dots near the center.  Looks like this could not only push a button, but flip tease the immediate environs at the same time..  an essential skill set for all aspiring jungle boys and/or girls to learn from their sponsoring cougar/s.

No wonder there are all sorts of low rider chicks out there...

Tue, 08/10/2010 - 13:27 | 512890 rapunzel
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miles, your going to have to show me.

Tue, 08/10/2010 - 20:17 | 514070 Miles Kendig
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3.1, how six can be better than two or that being Irish is more than it's cracked up to be?

Tue, 08/10/2010 - 20:20 | 514092 rapunzel
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still don't get it. maybe, the irish thing.

Tue, 08/10/2010 - 20:35 | 514123 Miles Kendig
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hmm   It seems you get the rest which is sufficient for the moment.  peace  and thanks for adding your commentary to the mix.

Tue, 08/10/2010 - 10:05 | 512450 ussa
ussa's picture

The should just send a  $30k check to every US citizen.  It would have more effect than any of the worthless QE that has occurred.  At least the inflation would be somewhat fair to Americans.

Tue, 08/10/2010 - 10:08 | 512457 Tense INDIAN
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HOW TO FIX the economy.......this is what i read in sometime lastv year....

they have spent TRILLIONS in Bailout.....its amazing to see that it can be done with a few millions....


There are about 40 million people over 50 in the work force. Pay them $1 million apiece severance for early retirement with the following stipulations:
1) They MUST retire. Forty million job openings - Unemployment fixed.
2) They MUST buy a new American CAR. Forty million cars ordered ­ Auto Industry fixed.
3) They MUST either buy a house or pay off their mortgage ­ Housing Crisis fixed.
It can't get any easier than that.
P.S. If more money is needed, have all members in Congress pay their taxes...
Mr. President, while you're at it, make Congress retire on Social Security and Medicare. I'll bet both programs would be fixed pronto.
this also shows how DUMB the population have become ...they cant fathom BILLIONS millions TRillions....n what can be done with these amounts
Tue, 08/10/2010 - 10:22 | 512492 MachoMan
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Or plan B, tell them a part of their monthly check isn't coming because you're cutting back...  everyone is cutting back...  if the economy grows, they might get more...  if not, better luck next time.  But we're paying our international treasury holders 100 cents on the dollar. 

PS, that's $40t....  which would cause holyfuckinstacollapse.

Tue, 08/10/2010 - 10:25 | 512500 Internet Tough Guy
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Pull down long rates? But banks like steep curves, not deflation.

Tue, 08/10/2010 - 10:34 | 512520 Shishya
Tue, 08/10/2010 - 10:35 | 512526 The Rock
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Size does matter. As one black woman put it, "I don't want no tugboat in my harbor, I want a luxury liner!"

Tue, 08/10/2010 - 10:41 | 512545 rapunzel
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Goldilocks once said, just enough is best.


Tue, 08/10/2010 - 10:39 | 512535 Miles Kendig
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Disruptions!?  Bad air and bloodletting usually lead to all that.

Tue, 08/10/2010 - 10:47 | 512559 Eduardo
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... and Bernanke. Do not show your QE after being in a swimming pool because it shrinks! 

Tue, 08/10/2010 - 11:11 | 512616 Grand Supercycle
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SP500 important chart update :

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