The One Chart To Explain The Real Effect Of QE3

SEE3772's Avatar
TexTushHog's Avatar
So it decreases beta? How is that, in and of itself, harmful?
Fast Gunn's Avatar
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's Avatar
So this one chart explains it all?

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



Originally Posted by Fast Gunn
Not really, that's sort of the point of the chart.
Fast Gunn's Avatar
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's Avatar
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!


Originally Posted by Fast Gunn
Maybe, you just don't understand.

Black hole physics is "gobbly-gook" to me; that doesn't mean it isn't true.
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's Avatar
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. Originally Posted by acp5762
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.
A quick 7 minute lesson on Keynes economics.

http://www.youtube.com/watch?v=d0nERTFo-Sk
http://www.zerohedge.com/news/one-ch...eal-effect-qe3 Originally Posted by SEE3772
Bullshit.

That's my EKG from my first session with Alyssa Nicole. I'd recognize it anywhere.
joe bloe's Avatar
A quick 7 minute lesson on Keynes economics.

http://www.youtube.com/watch?v=d0nERTFo-Sk Originally Posted by icuminpeace
That's the weirdest thing I've seen recently.
SEE3772's Avatar
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.

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This indicates the Federal Reserve is altering the behavior in the markets.
Also indicates the FED plans to create future bubbles
.
Bubbles I love Bubbles....fuck bubbles...Bubbles has 6 reviews on eccie...
Fast Gunn's Avatar
Well, that makes more sense now.

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




Bullshit.

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