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Dr. Doom @Nouriel tweets:
QE2 will be followed by QE3 and QE4 as QE2 will fail to revive the real economy and to prevent deflationary pressures… QE3: more Treasuries purchases by the Fed in 2011 once QE2 has little traction on deflation risk and anemic growth QE4: another round of reckless tax cuts pushed by the GOP financed by Fed monetization of deficit (effectively an helicopter drop of money) QE5: The Fed targeting the 10yr Treasury yield at 1% by committing to buy unlimited Treasuries at that price/yield as it did in the 1950s.
QE2 will be followed by QE3 and QE4 as QE2 will fail to revive the real economy and to prevent deflationary pressures…
QE3: more Treasuries purchases by the Fed in 2011 once QE2 has little traction on deflation risk and anemic growth
QE4: another round of reckless tax cuts pushed by the GOP financed by Fed monetization of deficit (effectively an helicopter drop of money)
QE5: The Fed targeting the 10yr Treasury yield at 1% by committing to buy unlimited Treasuries at that price/yield as it did in the 1950s.
