EURUSD

Quoting DMA Trader

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i'm trying to compare situation in US with EZ.

so economy is doing better compared to 2009
both country's

what about connection between unemployment and Q.E

Company's are not hiring. so I am still waiting for the answers.

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Quoting DMA Trader

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q.e will not bring back jobs that's my point.
did in worked last time ? no.

so why q.e. at this point.

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Quoting mfoste1

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if there are no jobs, there will be no consumer confidence since people don't have any disposable income. when there is no consumer confidence, consumer spending obviously goes down. when calculating gdp through the spending approach, consumer spending accounts for the largest percent, so when consumer spending goes down so does growth. So in order to keep int rates low, gov must intervene w stimulus to avoid crowding out effect.

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Quoting mfoste1

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if there are no jobs, there will be no consumer confidence since people don't have any disposable income. when there is no consumer confidence, consumer spending obviously goes down. when calculating gdp through the spending approach, consumer spending accounts for the largest percent, so when consumer spending goes down so does growth. So in order to keep int rates low, gov must intervene w stimulus to avoid crowding out effect. Higher int rates will always mean reduced demand for investment.

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Quoting tonyo524

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Because our government is only interested in corporate profits. And that goes for the current and previous. On a side note. remember, all of this QE2 isjust media speculation. The fed have never came out and said that they would do that. They through hints that they may do something similar, and they let the newswires, and sheople run with it. Good plan. They get the weaker dollar, while being able to if need be deny that they actually said they would do a second round. It's all in the wording.

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Quoting DMA Trader

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ok makes perfect sens. until we get to Q.E.
i think Q.E. can stop a damage so we don't go into worse shape.
but still can't see if unemployment can't go down with Q.E. help.

all the money are being kept. costs are being cut. people - company's use money to take risk assets. but money doesn't go into hiring.

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Quoting mfoste1

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qe is a complete market failure. It has never worked, it never will work for any economy. The more qe, the more it doesn't work. Think of the economy like an athlete on steroids(jose canseco) or drug addict(john frusciante). Each time they use, their bodies become more resistant to the drug, achieving less desired effect. Then when the economy is off the drug, it becomes dependent on it and is very weak.

http://en.wikipedia.org/wiki/Quantitative_easing

http://en.wikipedia.org/wiki/Liquidity_trap

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Quoting DMA Trader

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i totality agree
but here is where i can't figure.

it's either only for the language. or why would they go for Q.E ?

on a liquidity trap they can only use language. that's it.

for example. saying rates would stay near 0 for a specific period of time.

i think this Q.E. talk can be a huge disappointed in November.

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Quoting Venice

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... and heres 1.4 again... make or break yeah?? haha...

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