QE3 all but dead.

[spdrun]

Fed minutes finally spoke of a concrete taper plan. -$10 billion this month. -$10 billion in September. -$15 billion in October. DONE!

OK data from last quarter are pretty certain, which will take us through at least the September meeting. About time!

ZIRP’s future is indefinite, but remember that after the QE1 and QE2 programs ended, mortgage rates fluctuated quite a bit. (Even hitting 5% in 2010 and going to high 4’s in 2011).

[SD Squatter]

If history is going to repeat, then:

Read more:

CNBC Confused As To Why Interest Rates Are Falling

TFTB – Likely Rates Will Continue To Fall

[moneymaker]

So spdrun when you say done, you mean fed will keep buying $50 Billion a month forever. What is their “normal” bond buying? Pre-2008. Nice article SD Squatter, didn’t read the whole thing but liked the graphs.

[livinincali]

[quote=moneymaker]So spdrun when you say done, you mean fed will keep buying $50 Billion a month forever. What is their “normal” bond buying? Pre-2008. Nice article SD Squatter, didn’t read the whole thing but liked the graphs.[/quote]

No done means the fed will stop buying completely in October. QE3 or QE infinity as some people called it started at $85 billion per month and it will be pared down every fed meeting until it goes to 0 in October.

The question is will we see yields go down again this time when the fed stop buying? I’m not sure but if the stock market corrects hard or crashes then I suppose we could see that behavior repeat itself.

[CA renter]

[quote=SD Squatter]If history is going to repeat, then:

Read more:

CNBC Confused As To Why Interest Rates Are Falling

TFTB – Likely Rates Will Continue To Fall[/quote]

Great articles. Thank you, SD Squatter.

[Author]

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