Thursday, August 25, 2011

Anticipating Bernanke

what will he say?

QE3 is a doubtful forecast.  check this Many are thinking the Fed might not go there again.

Other options:

Buying longer end Treasuries -- lower real rates -- bad for dollar, good for gold & possibly stocks
Reduce bank reserve's interest to zero -- force loans/credit
Cap yields on treasuries (short and medium term) -- spur spending / lending

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