The market will react by crashing down with no new infusion of money.
The fed will panic and will resume business as usual.
Topic: QE being "reduced soon" (Read 843 times)
soonish 
!
and when we hit the next crisis, QE 23 will happen. it will never end. USA , Asia (japan) and EU are going this way.
!and when we hit the next crisis, QE 23 will happen. it will never end. USA , Asia (japan) and EU are going this way.
According to news networks, Japan is in a 'deflationary spiral' and they're doing that thing of painting deflation as a horrible thing that must be avoided at all costs, but when I see some full detached houses going for less than a flat in the UK I seriously question whether it really is as bad a thing as they claim.
Sorry, I'm being too nice, I never believed that bullshit in the first place.
soonish !
and when we hit the next crisis, QE 23 will happen. it will never end. USA , Asia (japan) and EU are going this way.
!and when we hit the next crisis, QE 23 will happen. it will never end. USA , Asia (japan) and EU are going this way.
Most if not all of this QE is going into the stock market and that's their last big standing thing that's showing signs of life and rebound. Normal people are likely not that fooled about whether we're really turning things around. They toned it down to $65 Billion a month last time I believe so it'll likely be reduced to $60-55 Billion so as not to pull the rug out from underneath their baby too fast.
AFAIK they have already slowed down the purchase of bonds several times this year (I believe the rate has been slowed by $10 billion per month at each Fed meeting. I do agree that much the money from these purchases likely does go into the stock market, but I don't think all of it does. I would be very interested to see how both the stock market and the economy performs once the additional fed purchases has stopped and they become net sellers of bonds. 
Most if not all of this QE is going into the stock market and that's their last big standing thing that's showing signs of life and rebound. Normal people are likely not that fooled about whether we're really turning things around. They toned it down to $65 Billion a month last time I believe so it'll likely be reduced to $60-55 Billion so as not to pull the rug out from underneath their baby too fast.
What they're going to keep doing as they have done already is reduce the amount ever so slightly and keep it going as long as possible but they'll never fully give it up without being kicked out after a collapse, I have also noticed they're trying to keep it quiet that they're buying up various assets to keep things pumped up, the ECB and probably the bank of England is doing this too.
Sooo my be it is Reduced.. negativily to 115 Billion a month LMAO.
Anyone else got a guess at what the new QE amount will be?
Also how long until there are negative interest rates? I say 1 year tops.
Anyone else got a guess at what the new QE amount will be?
Also how long until there are negative interest rates? I say 1 year tops.
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