The Fed QE3 is a political move: " There is much rejoicing on Wall Street right now. And this stock market bounce is great for Bernanke's good buddy Barack Obama. Obama nominated Bernanke to a second term as Fed Chairman, and this might be Bernanke's way of paying him back. But of course the Fed is supposed to be "above politics" so that would never happen, right? The Federal Reserve essentially "crossed the Rubicon" today. No longer will quantitative easing be considered an "emergency measure". Rather, it will now be considered just another "tool" that the Fed uses in the normal course of business. Considering how vulnerable the U.S. dollar already is, announcing an "open-ended" round of quantitative easing is utter foolishness." This is all going to end up in tears.
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