Quantitative Easing

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Quantitative Easing Has Been A Monetary Failure; Persistent Deflation Means More Fed Intervention Coming Soon





Economic observations courtesy of Fed Fund futures, and the Taylor Rule, imply that not only is the economy now worse than it was before the Fed embarked on the colossal monetization ploy that is QE, but that rampant deflation courtesy of a much worse economic picture than presented by the government, will force the Fed to launch QE 2.0 imminently. The probability of a Fed Fund increase for a long, long time is zero.

 
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Is Quantitative Easing About To End?





After having purchased over $243 billion in treasuries to date via a the QE bond buyback program announced in March, in some cases buying the bonds form primary dealers just days after an auction's completion, the Fed is now expected to wind down its $300 billion Treasury-buying program. As Bloomberg reported recently, "The FOMC “is unlikely to extend the life of these
programs, unless, of course, either the economy or the financial
markets take a significant turn for the worse,” Meyer, vice
chairman of St. Louis-based Macroeconomic Advisers LLC, wrote in
a report released yesterday. “We therefore expect the FOMC to
announce at its upcoming meeting that it will allow the Treasury
purchase program to expire in mid-September."

 
Tyler Durden's picture

What Quantitative Easing?





10 Year Treasuries trading as if the whole QE thing never happened. Courtesy of visible and invisible hands which have made holders dump their bonds and chase after an insane market.

Totally unconflicted commentary from Paul McCulley of Pimco "The data is indicating we are in the bottoming process. The rate of decline is slowing." Took the words right out of Grasso's mouth.

Time for QE 2.0? Why not - the Treasury and the Fed are not know for getting things right the first time around... or fifth...

 
Tyler Durden's picture

What Quantitative Easing?





10 Year Treasuries trading as if the whole QE thing never happened. Courtesy of visible and invisible hands which have made holders dump their bonds and chase after an insane market.

Totally unconflicted commentary from Paul McCulley of Pimco "The data is indicating we are in the bottoming process. The rate of decline is slowing." Took the words right out of Grasso's mouth.

Time for QE 2.0? Why not - the Treasury and the Fed are not know for getting things right the first time around... or fifth...

 
Tyler Durden's picture

What Quantitative Easing?





10 Year Treasuries trading as if the whole QE thing never happened. Courtesy of visible and invisible hands which have made holders dump their bonds and chase after an insane market.

Totally unconflicted commentary from Paul McCulley of Pimco "The data is indicating we are in the bottoming process. The rate of decline is slowing." Took the words right out of Grasso's mouth.

Time for QE 2.0? Why not - the Treasury and the Fed are not know for getting things right the first time around... or fifth...

 
Tyler Durden's picture

What Quantitative Easing?





10 Year Treasuries trading as if the whole QE thing never happened. Courtesy of visible and invisible hands which have made holders dump their bonds and chase after an insane market.

Totally unconflicted commentary from Paul McCulley of Pimco "The data is indicating we are in the bottoming process. The rate of decline is slowing." Took the words right out of Grasso's mouth.

Time for QE 2.0? Why not - the Treasury and the Fed are not know for getting things right the first time around... or fifth...

 
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