Tag Archives: QE1

Weekend Reading

Quote of the Week:

As commercials for Fram oil filters used to say, “You can pay me now or pay me later.” In our case today, “pay me later” is a perpetuation of weak banks, substandard growth, persistent unemployment and stymied productivity. Better to do takeunders of banks now than to hire an undertaker for the whole U.S. economy later. ~Andy Kessler

Links for the Week ending Nov-20, 2010 Read more of this post

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QE2 through the lens of QE1

A survey released yesterday on the subject of the markets’ expectation for the future size Federal Reserve balance sheet has me curious regarding what another round of quantitative easing (QE) would mean for the equity markets. 70% of survey respondents believe the Federal Reserve will resume QE with the average expected increase in balance sheet size being $500 billion.

Several people have already weighed in with their opinion on what QE2 would mean for the markets. David Tepper, president & founder of Appaloosa Management, says there are only two scenarios (h/t pragcap.com):

1) The economy improves and stocks rise. OR

2) The economy will decline and the Fed will induce a rally in stocks via QE. Read more of this post