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Sailing the Good Ship QE4

August 15th, 2014 - 12:04 pm

L.A. Little says that despite the taper, there might still be more quantitative easing to come:

Looking back at the SPDR Gold Trust and iShares 20+ Year Treasury Bond ETF chart, there was one period during this ongoing experiment that is noteworthy and that is when both bonds and gold exploded higher during the first six months of 2011. Looking back, we know that QE1 underwent a tapering phase throughout late 2009 – 2010. But, the Fed reversed course in late 2010 and introduced another round of QE — this time focusing specifically on Treasury debt to push interest rates lower. By 2011, bonds and gold were leaping higher driving bond yields to historic lows.

If we fast forward to today, once more we are tapering again and QE3 should be finished up this year but if we look over to the gold and bond markets, both seem to be suggesting that our three experiments with QE may not be the end of it.

We’re addicted to stimulus.

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All Comments   (3)
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QE is what keeps the stock market from looking like the rest of the economy, and if the stock market keeps chugging along, business journalists will keep writing stories about the recovery.
13 weeks ago
13 weeks ago Link To Comment
Maybe we should go back to calling it Government Cheese. Or attaching any stigma whatsoever to being an entitlement wh0re.
14 weeks ago
14 weeks ago Link To Comment
- "But, but, if we cut off stimulus, the economy will tank!"

- "You are assuming that the stimulus isn't the problem."

- "Huh? What?"
14 weeks ago
14 weeks ago Link To Comment
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