Monday, January 31, 2011

Calculated Risk Mentions a Possible End to "Quantitative Easing"

I'm hearing speculation that the Fed might taper off the QE2 purchases of treasury securities to "promote a smooth transition in markets". Currently the plan is to purchase $600 billion in Treasury securities by the end of Q2 or about $75 billion per month. The speculation is that the size will remain the same ($600 billion), but that the Fed will taper off the purchases through the end of Q3 or so.

3 comments:

Eric said...

So how is a $1.5t deficit to be financed without QE? What kind of a "smooth transition" will that be?

CP said...

Flight to safety!

http://www.creditbubblestocks.com/2010/06/squaring-inflation-deflation-conundrum.html
http://www.creditbubblestocks.com/2010/05/treasury-bears-are-wrong-they-need-to.html

whydibuy said...

Everyone into the bomb bunker, the world is going to end!!!!

Look, the market is just cras....oh, wait, its rising higher, LOL.

Silly, silly bears. Now that Egypt didn't end the world, its back to the old standby that Bernie will end qe and send the market swooning.

We can always count on cb coming up with another shadow to scare bulls.....and cost them more gains, lol.