Posted by lotsofmoney > 2012-09-16 10:22 | Report Abuse

The present QE is specifily to buy the bankrupt asset off the bank's balance sheet. The banks will benefit and the CEOs will get another 10million in bonus. Nobody else will benefit except for the psychotic stock market, commodities and currecy market.

I do agree with you to swtich to dividend stocks.

Posted by alexisvics > 2012-09-16 11:04 | Report Abuse

When US government starts printing more US dollar, its time to buy share, comodities and gold.

Posted by kkbee > 2012-09-16 11:20 | Report Abuse

more lending and more stimulation.....they keep on repeating this. Why not just do another QE4 next week and QE5 another week later

Posted by andy118 > 2012-09-16 11:36 | Report Abuse

Why does QE's does not work in the US? QE's most probably benefit the rich people who can afford to borrow cheaply from the banks and invest all over the world to reap gains from the stocks, bonds, currency, commodities etc. Meanwhile the poor are too poor to borrow from the banks (or the banks would not lend to these high risk borrowers) to invest or to consume more.
At the moment it do benefit us stock kakis but we have to be careful for they may run off suddenly leaving us in the lurch. They are here to make money not for charity.
Just worth my 3 sens. Happy investing.

Posted by sure88 > 2012-09-16 12:02 | Report Abuse

Read what Marc Faber has to say about QE 3.
A good read since we have an extended
weekend ahead.!,

Posted by KC Loh > 2012-09-16 12:09 | Report Abuse

Mr everyday-doom-coming Faber has been predicting wrong for the past 2 years. Next year maybe his year! :)

Posted by KC Loh > 2012-09-16 12:24 | Report Abuse

in my mind, Bernanke's hands are tied. he had to respond to ECB's positives. Banking on job returns is the only way out after no more fiscal policy room to manouver. So far 40bn buying of bond every month is good to keep debt rates from ballooning only. However inflation will cancel out any positives in the long run. The only flaw i can see is he declared he is leaving interest rates low til 2015. after the QE3 wears off, and without proper handling, that will be the start of recession, stagflation and God forbids, depression.

he need to raise interest rates as soon as 2 or even 3 solid quarters are reported.

Posted by KC Loh > 2012-09-16 13:56 | Report Abuse

good write up:
http://biz.thestar.com.my/news/story.asp?file=/2012/9/15/business/20120915210426&sec=business

an addict fix at the most and Malaysian stock is at all time high again. Vulnerable to bear now and problems in middle east!

Posted by KC Loh > 2012-09-16 14:04 | Report Abuse

in short, get out of US dollar denomination backed business and focus on counters that trades mainly in East Asia, India, Russia and Latin America!! Select local defensive stocks! :)

Posted by kkbee > 2012-09-16 14:45 | Report Abuse

when it comes down, do another QE again.
when feel tired and need to look strong again, just inject another steroid shot

Posted by KC Loh > 2012-09-16 14:59 | Report Abuse

that can work, provided you wanna see the 2nd biggest economy in the world turn to another zimbabwe!

Posted by KC Loh > 2012-09-16 15:04 | Report Abuse

good reading : http://online.wsj.com/article/SB10001424052748703730804576314953091790360.html

Posted by kkbee > 2012-09-16 15:09 | Report Abuse

this reminds me of our Japanese banana money

Posted by nick > 2012-09-16 21:23 | Report Abuse

Yep. An inevitable economic downturn is coming soon. This easy money will end up in assets, creating another big bubble. Dow is approximately 6% from it all time high of 2007. US unemployment rate stands at 8.2%, with debts of almost 100% of GDP. It makes me wonder whether the US stock market is severely overvalued considering the economic environment they are facing.