Disclaimer: this is not an investment site; this is just idle chatter waiting for Friday's daily activity report.
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September 8, 2012: It looks like both could happen this next week: a) QE3; and, b) an announcement to release oil from the SPR.
If the Fed has one more "we're still looking at the data" non-decision, it will speak volumes that a) they know it won't work any way; and/or, b) there are no more meaningful arrows in the quiver. QE3 will do nothing for the "average" American before the election (but will push the market higher).
With regard to the SPR, that's a bit more iffy. There's no reason in the world to release oil from the SPR unless it's a purely political ploy or the Israeli strike on Iran is all but guaranteed. It will be interesting to see what oil speculators do when/if oil is released, knowing that it will be replaced at higher prices.
My hunch: neither will happen. Can't wait to be shown to be wrong.
Gold at $ 2,000 per oz . next week..
ReplyDeleteWill more QE3 add $ 3-5 more to WTI..
Yup QE1 didn't work, so do QE2, that doesn't work, so do QE 3. I think I see a pattern. Reminds me of my golf game where I keep on doing the same things but expect to get better. At least I'm not damaging anybody with my golf game insanity. But seniors who are getting 1% on their savings are being bludgeoned by the Fed's actions and THOSE ACTIONS ARE NOT WORKING. I'll benefit from QE3 but printing money is wrong in my opinion. Just a thought.
ReplyDeleteRight, wrong, or indifferent, I'm just curious if the Fed has anything left.
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