Formerly NE North Dakota, now NW MN | I would argue yes, because when the original quantitative easing program was announced, some shrewd (some would argue too shrewd....topic for a different time and place....) market players moved the 10 and 30 year notes massive amounts in just minutes. As soon as they announce they are going to buy something, everyone else races to buy it first, and those market moves ripple out into other markets and the broader economy. So, essentially as soon as they announce they are going to do something, it's effects are baked in.
They were a bit smarter this time, opting to make the time and amount open ended so as to avoid a bit of that... But that makes it's possible effects even scarier in my humble opinion.
Anyways, to answer your question, If we original flavor QE and QE2 are at all representative, I believe QE3's effects are already in the marketplace. Maybe not 100%, but a good chunk of em. What makes it look like a monumental waste and unnecessary risk is- Everyone taking long positions in DX know that between the gov't and the fed, basically everyone with any shred of power is doing whatever they can too debase the dollar...... yet bond yields are crashing and DX is gaining. |
europes rioting affecting markets
