The One Chart To Explain The Real Effect Of QE3

[SEE3772]

http://www.zerohedge.com/news/one-ch...eal-effect-qe3

[TexTushHog]

So it decreases beta? How is that, in and of itself, harmful?

[Fast Gunn]

So this one chart explains it all?

. . . Can someone explain the damn chart in plain English without the beta, LSAPS and signal suppression bullshit?

[TexTushHog]

Originally Posted by Fast Gunn

So this one chart explains it all?

. . . Can someone explain the damn chart in plain English without the beta, LSAPS and signal suppression bullshit?

Not really, that's sort of the point of the chart.

[Fast Gunn]

Ha-ha-ha, Mr. doody.

. . . Tell me when we get to the funny part.


Risk sentiment in relation to data surprise? That's just gobbly-gook!

[joe bloe]

Originally Posted by Fast Gunn

Ha-ha-ha, Mr. doody.

. . . Tell me when we get to the funny part.


Risk sentiment in relation to data surprise? That's just gobbly-gook!

Maybe, you just don't understand.

Black hole physics is "gobbly-gook" to me; that doesn't mean it isn't true.

[acp5762]

I don't know all the intracacies of QE3,But the way it has been explained to me from people in the know. The economic strategy behind QE3 , { Quantative Easing} is to help boost a mildly struggling economy and help it to a more productive trend. It will have very little long term effect on an economy that is in total ruin such as ours. I honestly believe the Fed is implementing QE3 as a political strategy to strengthen people's confidence rather than strengthening the economy.

[joe bloe]

Originally Posted by acp5762

I don't know all the intracacies of QE3,But the way it has been explained to me from people in the know. The economic strategy behind QE3 , { Quantative Easing} is to help boost a mildly struggling economy and help it to a more productive trend. It will have very little long term effect on an economy that is in total ruin such as ours. I honestly believe the Fed is implementing QE3 as a political strategy to strengthen people's confidence rather than strengthening the economy.

Bernanke is probably just trying to prop up the stock market until after the election, so Odumbo can get re-elected.

When this thing finally crashes, it's going to be Biblical.

[icuminpeace]

A quick 7 minute lesson on Keynes economics.

http://www.youtube.com/watch?v=d0nERTFo-Sk

[Guest032516]

Originally Posted by SEE3772

http://www.zerohedge.com/news/one-ch...eal-effect-qe3

Bullshit.

That's my EKG from my first session with Alyssa Nicole. I'd recognize it anywhere.

[joe bloe]

Originally Posted by icuminpeace

A quick 7 minute lesson on Keynes economics.

http://www.youtube.com/watch?v=d0nERTFo-Sk

That's the weirdest thing I've seen recently.

[SEE3772]

Large-Scale Asset Purchases (LSAP)

As the following chart from Barclays shows, the real effect of LSAPs is to suppress the signaling effect of macro data from the real economy. During periods of extreme monetary policy, the stock market's beta to macro-economic data surprises is dampened massively - and hence the forced mal-investment and mis-allocation of funds occurs.

-----------------------------

This indicates the Federal Reserve is altering the behavior in the markets.
Also indicates the FED plans to create future bubbles.

[IIFFOFRDB]

Bubbles I love Bubbles....fuck bubbles...Bubbles has 6 reviews on eccie...

[Fast Gunn]

Well, that makes more sense now.

. . . I imagine those peaks on the chart were when you found her G-spot then!

Originally Posted by ExNYer

Bullshit.

That's my EKG from my first session with Alyssa Nicole. I'd recognize it anywhere.