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Author: loveoldcars Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 458948  
Subject: Will QE3 Generate Jobs? Date: 10/3/2012 10:08 AM
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Hi Guys,

Remember that under Quantitative Easing I and II, the Fed printed roughly $2 trillion in new money. And yet still we’ve experienced the weakest US jobs recovery in a half-century. Will printing even more money under QE3 really generate jobs in the US and what do mortgage backed securities have to do with jobs? We're asking these questions as we believe there is at best a very weak linkage between Federal Reserve printing of money and actual jobs creation. Moreover, the structural issues the US employment market is facing strongly suggest the true motivation of the Fed in unleashing unprecedented and unlimited QE3 is asset reflation, not jobs creation, despite this being quite the noble perceptual focal point. The key point is asset reflation. This is exactly where theoretical success, or otherwise, of QE3 will be measured by the Fed itself.

The Fed’s QE I saw its greatest success in reflating a broad spectrum of financial asset prices. We saw very much the same outcome, although to a lesser degree, with QE II. And so QE III will all of a sudden be effective in creating domestic jobs? Again, a noble perceptual focal point, but one not supported at all by the data or character of the current economic cycle itself. The new QE III is once again all about asset reflation, as have been the prior two Fed balance sheet expansion stimulus programs. Make absolutely no mistake about it and act accordingly.


http://www.contraryinvestor.com/mo.htm

rk
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Author: RaptorD2 Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 405268 of 458948
Subject: Re: Will QE3 Generate Jobs? Date: 10/3/2012 11:10 PM
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Allow me a few points, Cars.

1. QEI & II were designed to send the cash to the largest financial firms and that's exactly what it did.

2. As much as I make fun of The Bernank, the guy can't fix the economy without the politicians, period. In every speech I'm sure he would like to preface each new idea or point, with: "Since our political leaders won't do anything, all the Fed can do is ...."

3. The guise of lowering employment is just that, a guise, to hide the fact that the 1%'ers are not happy with 3/4 of the wealth; they want it all. I figure QE VI should just about accomplish their goal.

Dan

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Author: notehound Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 405272 of 458948
Subject: Re: Will QE3 Generate Jobs? Date: 10/4/2012 12:39 AM
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"Since our political leaders won't do anything, all the Fed can do is ...."

3. The guise of lowering employment is just that, a guise, to hide the fact that the 1%'ers are not happy with 3/4 of the wealth; they want it all. I figure QE VI should just about accomplish their goal.


Dan,

You are so right that QE will ensure that the highest tier of the 1% ends up with it all.

As to Bernanke's implicit/explicit complaint that "our political leaders won't do anything," he can thank his imposed Financial Repression and endless ZIRP for that.

Politicians will borrow until interest costs force them to cut spending or raise taxes - and will not stop borrowing one second before interest rates rise.

Bernanke is responsible for the fiscal problems.

He's an enabler. No different that a drug pusher.

The pusher is nuts if he expects the addict to cut back on drugs - especially when the pusher is giving the addict their drugs for free.

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Author: mauser96 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 405301 of 458948
Subject: Re: Will QE3 Generate Jobs? Date: 10/4/2012 3:17 PM
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more on the Fed
http://finance.yahoo.com/news/divided-fed-considers-numerica...

There was clear support for an approach favored by Chicago Federal Reserve Bank President Charles Evans, who has advocated allowing inflation to rise as high as 3 percent for as long as it takes to get the jobless rate below 7 percent.
and if 3% inflation doesn't work, they will try 4% , then 5%, then...

Is the Fed is like somebody trying to thread a nut on a bolt using a hammer, because that's the only tool they know about ?

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Author: MadCapitalist Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 405311 of 458948
Subject: Re: Will QE3 Generate Jobs? Date: 10/4/2012 8:54 PM
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more on the Fed
http://finance.yahoo.com/news/divided-fed-considers-numerica......

There was clear support for an approach favored by Chicago Federal Reserve Bank President Charles Evans, who has advocated allowing inflation to rise as high as 3 percent for as long as it takes to get the jobless rate below 7 percent.
and if 3% inflation doesn't work, they will try 4% , then 5%, then...

Is the Fed is like somebody trying to thread a nut on a bolt using a hammer, because that's the only tool they know about ?


You would think that they would have rejected this Phillips Curve nonsense long ago.

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