I'll give myself a break on the QE call to arrive by fall (since QE2 ended in spring, and our economy needs drugs I always assume the Fed will step in within 4-5 months of stopping the previous operation) since Operation Twist ruined my chance for a quick QE3.... but give it a meeting or two from here and we'll all be dancing like we did last summer.... err, 2 summers ago.
Summary format: Dear plebeians, our omnipotent leader shall suck the dirty mortgage paper from our friends the banks, and then shower you filthy heathens with new U.S. dollars. Soon. Your stock market shall levitate and you shall partake in the same riches the 0.1% will have. Nevermind those elevated spring and summer 2012 gas prices - our powers do not affect the commodity complex, we only provide beneficial asset inflation. Now kiss my hand in thanks.
Long format: Yellen said the “Fed continues to provide highly accommodative monetary conditions to foster a stronger economic recovery in a context of price stability,” she said “the scope remains to provide additional accommodation through enhanced guidance on the path of the federal funds rate or through additional purchases of longer term financial assets.”
Atlanta Fed President Lockhart is skeptical, but he is almost a plebeian himself:
- "I am skeptical that further asset purchases will produce much gain in terms of increased economic activity," he told business students at the University of Georgia in Atlanta.
All that's left is to hear it directly from the horse's mouth, either in a speech, or through his puppets in the financial media. And our gift shall be delivered.
In a non related note - hello $5 Bank of America (BAC). Below $5 a lot of funds are required to sell....
No reports yet of how many Congress members and staffers have been short the name the past month.