The Fed announcement tmrw, like previous announcements in the past few years, may excite markets in the short term, but in the long term and in the big scheme of things, it's inconsequential. The bond bubble will still burst eventually, whether it's forced by the Fed themselves (highly unlikely) or if it's forced by the market.
But just for kicks: They are more likely to continue/increase their QE size than to taper, cos they need to cover all those lost bond demands. Even if they announce tapering, the money printing still goes on behind the scenes, as has happened all the time in the past decade.
If i'm a short-term betting guy (which I'm not), I'll bet that he maintain the QE or even increase it. He may say something like: "The recovery is ongoing but the Fed wants to be extra sure. So we increase the QE."
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Mr Bernanke has done a great job in keeping the 2008 financial crisis under control. His policies has worked well, and will continue to.
ReplyDeleteI do not think he will continue yet another term, due to President Obama's comment on him.
Well done, Bernanke. American's hero. Person of the year, 2009 - Time Magazine.
Indeed... he has done well in stealing ordinary citizens' purchasing power and creating a giant bond bubble.
ReplyDeleteHe is the savior of United States, of the World buddy. With him, US can continue to consume the production of other countries.
ReplyDeleteyou need to pay for the imports with exports
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