Bernanke Keeps Us Guessing
Regardless of your opinion of the Federal Reserve's new quantitative easing program, the open-ended nature of this latest round of bond purchases is critical. Fed chief Ben Bernanke and the Federal Open Market Committee realized that placing an expiration date on a stimulus program curtails its effectiveness as its end draws near, so they've decided to keep us guessing. That's a smart move; there will probably never be a QE4 because QE3 is, theoretically, infinite.
Does that mean markets will move infinitely higher? I'm uncomfortable now that so many players are expressing unbridled enthusiasm. It's not a bad thing to be a member of the bull herd, but when the herd consists of everyone, I get nervous. It seems too easy, but I have to go along....287 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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