confirms my thoughts, seekingalpha. after today's market action in stocks and forex, there is no reason for QE3 (other than that Ben likes to surprise traders). the stimulus job has already been done by the ECB with a little help from China last friday. USD is weak and S&P is high. jobs cannot be created by QE3. I reckon the only chance for QE3 is a surprise decision by the German court tomorrow.
Zero Chance For QE3 - The Fed's Job Is Done
Stocks have moved dramatically on the "bad is good" theory of investing in recent weeks. That theory states that more bad news will motivate the Federal Reserve to go to QE3 and inflation will be the result, driving equities and other assets higher. The flaw in that thinking is that investors simply don't understand what QE actually does and why additional QE will not have any impact. To assume that QE3 will work to expand money supply and regenerate inflation is a flawed assumption. Investors who are basing their investment decisions on QE3 are going to be disappointed. A little refresher course on Money and ... (full story)