What QE-infinity has done so far6 November, 2012, 21:39. Posted by Zarathustra
The third round of quantitative easing (or QE-Infinity as we like to call it) has been announced for close to two months now.
Although Fed “printing money” always mean for many people that the dollar has to be weaker, gold has to rise, and stocks will go up, don’t fight the Fed, etc, has the reality turns out like that?
Well, not really.
For instance, gold is now lower than it was before QE-Infinity was announced.
Stocks are now lower.
US dollar is now higher.
Maybe it has to do with the fact that despite increasing pace of purchases in mortgage backed securities, the Fed’s balance sheet is still not really expanding for various possible reasons. Or maybe it is something else, like a mediocre earnings season.