Countdown to QE3
Ben Bernanke did what most everyone expected and didn't announce QE3, but the Fed chief made a strong case for why it may be necessary and hinted strongly that the FOMC is moving in that direction. There was a little confusion in the early going, but then the spin that the Fed is on a mission to deliver another round of quantitative easing took hold and that put a bid under the market. Market players will be expecting an announcement in the next couple of months, unless we have a sudden and sizable improvement in unemployment, which seems very unlikely.
Gold, silver, oil, banks and bonds all rallied, which is exactly what led during the last quantitative easing program. Volume continues to be abysmal, but it feels almost foolish to consider since it hasn't been a very good indicator of anything lately....248 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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