qe2

A good deal of the money that the Federal Reserve pumped into the U. S. financial markets through QE2 didn't stay in those markets.

Since Ben Bernanke, the Federal Reserve chairman, hinted in late August that it was on its way, financial markets have responded vigorously.

The Fed is therefore expected to announce a new round of asset purchases, widely known as QE2, at the end of its November meeting next week.

With the end of QE2, that could turn into a 15% to 20% discount by the end of 2011, he said.

The autumn recovery started when the Fed signalled that it would resort to a second round, the so-called "QE2" .

But long-term rates have risen since the Fed launched its latest program of so-called quantitative easing, known as " QE2" .

QE2 focused solely on Treasurys in an attempt to entice investors into buying riskier assets like stocks.

At the moment the fastest cruise ships, such as the QE2, which is capable of 32. 5 knots, take about a week to make the journey .

Some of that cash might be from QE2.

This view is a little strange, given that Treasury yields have fallen dramatically since the end of QE2.

With the luxury of hindsight, it is possible to argue that QE2 did more harm than good to both the economy and the polity.

Even though a good ISM increases the chances that QE2 might be curtailed, investors cared more about economic strength.

As conditions have worsened since the meeting, QE2 could be imminent; best to brace for it in October.

It could be a boon for Treasurys if economic growth slows, knocking down commodity prices and reducing the risk of inflation.

There's still a lot of criticism of the Fed here at home, and its legacy remains to be seen.

Q: Do you think the United States is going to change its quantitative easing policy after QE2 expires in June?

While I acknowledge the potential for rising rates, I don't think the expiration of QE2 is the catalyst that most believe it to be.

We think that this approach would allow the Fed to manage the varying expectations from the market of the amount of so-called 'QE2'.

The central bank is likely to buy Treasurys and TIPS again as part of any QE2 program, encouraging investors to buy both assets.

It is also being associated with both the recent correction in commodity prices, and, for some analysts, the cyclical downturn to follow.

My second point is about the possible influence on China by Federal Reserve's second round of Quantitative Easing policy, also known as QE2.

Some fund mangers have stayed away from QE2 bets, in favor of a more global approach.

That case is unlikely to be derailed despite opposition from some on the FOMC who feel that the risks of QE2 are too great.

Yet even the equity bulls say that the QE2 factor cannot be ignored.

Even if the inflation hawks at the Federal Reserve can be subdued, a third bout of quantitative easing will be even less effective than QE2.

Mr Gross said that this risks a temporary void in demand once QE2 ends.

I agree QE1 and QE2 have done nothing to help the economy and in my opinion have actually hurt it.

It means that the FOMC had already discussed many of the important issues about QE2 before the November meeting at which it was launched.

After QE2, this would likely be mostly Treasury bonds but it could also be mortgage-backed securities.

"We have to weigh those in the decision" on whether to stop the Fed's QE2 program earlier than planned, Bullard said.

The USD remains a net beneficiary even as the Fed continues to print more USDs in the form of QE2.

QE2 would be implemented when governments are already skirmishing over currencies.

The swift decline in stocks and commodities last week further bolstered the argument that the end of QE2 would actually benefit bonds.

On this side of the "pond, " the data don't support an early exit from QE2 and interest rates will likely remain near zero.

Yet QE2 seems already to have exceeded the low expectations it has aroused.

The Fed is expected to confirm its $600 billion asset purchase program, known as QE2, will end as scheduled in June.

And when the economy remained stagnant for another year, he did step on the gas a bit with QE2.

This does not argue against QE2. But it suggests that it will not help much.

The Fed's launch of a second round of quantitative easing (QE2) of $600bn has reinforced this view.

A significant portion of the QE2 could then leak offshore, sparking asset bubbles in high-return developing economies.

While QE2, as it has been dubbed, has its critics, Mr. Bernanke is a believer.

Then, just like a bad Hollywood film series, we may end up talking about a sequel to QE1 and QE2.

The same motivation for QE1 and QE2: namely, stimulating growth to help employment recover.

You might say? I thought not only has it started last November, it's about to end?

For although QE is a potent weapon against deflation, its power to support recovery is limited.

As the 'QE2' debate continues, it is likely that markets may be range bound ahead of next week's FOMC meeting.

So "QE2" is the fancy name given to a very base and simple act: money printing.

Still, the early evidence suggests that QE2 is already working as advertised.

The second issue is about the Fed's second round of Quantitative easing monetary policy (QE2)and its possible influence on china.

First, it could be neutral, pledging to adjust the size of QE2 depending on the data.

Another reason: The Fed is buying buckets of bonds through its second quantitative-easing program, dubbed QE2.

It does not look like QE2, or strong data, have pushed up inflation expectations.

The global implications are equally worrisome.

QE2 drew heavy fire from abroad, from Republicans on Capitol Hill and from within the Fed.

In the US, the recovery faltered, forcing the Federal Reserve to order a fresh round of quantitative easing, dubbed QE2.

But dollar bears are trimming positions before the end of June, when the Fed ends its second round of "quantitative easing" , dubbed "QE2" .

Instead of playing defensively, some investors look at the Fed's exit as an opportunity.

That suggests that the ultimate size of QE2 may end up being smaller than markets had hoped.

Focusing on QE2 might also raise questions about what caused the crisis in the first place that Beijing does not want asked.

Faced with the shock from QE2 of America, China cannot afford to pay no attention.

It has rejected the 4 per cent cap proposed by Mr Geithner on the current account, and will target QE2.

First, let's say Mr Bernanke is right and QE2 prompts an asset-market-led rebound of US consumer demand.

So expect that $600 billion or more to start hitting toward the end of 2011.

The China-bashing subtext of Mr Bernanke's latest QE2 defence as presented on November 19 in Frankfurt only heightens these risks.

Option three is the strongest because it gives an open-ended commitment to keep expanding the size of QE2 until the economy improves.

Bond bulls suggest the end of QE2 could cause that history to repeat itself.

My conclusion is that QE2 may be a short-term expansionary force, thereby lessening concerns about deflation.

NIA believes that most of QE2 has already been priced into the market, before the Federal Reserve even prints the $600 billion.

'When QE2 ends, maybe those assets go the other way, and people buy more Treasurys. '

We believe it is questionable whether QE2 can solve the chronic economic problems dogging the US.

Those betting on a post-QE2 rally in Treasurys have history on their side.

The announcement of "QE2" was hardly breathtaking.

The consensus forecast for US growth in 2011 is now lower than before the adoption of QE2.

QE2 will be over in 30 days. That removes a $600 billion injection of money in the financial system.

Several dozens more dead diggers and high currency exchange rate when QE1 and QE2 hit the market.

Is there substantial gain from the underlying risks of QE2?

However, among more pessimistic investors and strategists, the big fear is that QE2 will be undermined by external factors.

Get the champagne bottle ready; the UK's QE2 could launch within weeks.

The presumption is that QE2 will regenerate the animal spirits of America's now dormant asset-dependent economy.

When you stop QE2 a major source of stimulus disappears.

But what happens when QE2 ends in June?

Time will tell if Brazil's Central Bank's bet on falling commodity prices post-QE2 will pan out and lead to lower inflation in 2012.

'The Fed is acutely aware of the risk. This is one reason QE2 will be incremental. '

This is largely because circumstances are less dire than when the second round (QE2) began last autumn.

A tightened money supply is underway in China as US just passed the second round of quantitative easing (QE2).

And now came the trap: 40.

Proof comes from the reaction of economists and investors to the announcement and delivery of QE2 by the Federal Reserve last year.

Last year's $600bn QE2 (along with $1, 000bn of tax cuts and transfers) produced a growth bump of barely 3 per cent, for one quarter.

Bernanke's bold QE2 finally explained -- with burgers and fries