QE3


ricohflex

Senior Member
Feb 24, 2005
3,353
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#1
It is official.

Up to US$85 Billion per month.

Question: If QE1 and QE2 failed, will QE3 be different?
 

donut88

Senior Member
Nov 14, 2008
2,182
5
0
#3
ricohflex said:
It is official.

Up to US$85 Billion per month.

Question: If QE1 and QE2 failed, will QE3 be different?
What's QE3?
 

Shizuma

Senior Member
Mar 19, 2012
2,557
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#4
QE3 will be the same . only more.
 

hanzohattori

Senior Member
Apr 16, 2010
999
5
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#5
It is official.

Up to US$85 Billion per month.

Question: If QE1 and QE2 failed, will QE3 be different?
I wouldn't say that QE1 & 2 failed. Some argue its not big enough in the first place. Which means it sustained the economy up to a certain extent.
 

Feb 10, 2010
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#8
Waiting for the greenback to weaken further. Then buy buy buy.

Btw, I noticed the price of some 2nd stuff in bns are going quite low while some sellers are still holding on to prices as if the market is so bullish.
 

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Big Kahuna

Senior Member
Dec 15, 2004
2,126
1
38
Singapore, Singapore, Singapor
#9
depends what you are getting. branded stuff?
Normally clothings stuffs for personal and software and services for company....

Branded or not is very subjective....for example things like Coach, Levis, Ralph Laurent, Gap or even Banana Rep and AF is mid range over there but down here is like super inflated :lol:
 

Shizuma

Senior Member
Mar 19, 2012
2,557
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#11
in any case, the foreign currencies are surging against USD . EURUSD up from 1.26 last week to 1.31xx this morning, kind of insane.
Implications of QE: Massive liquidity in USA , which will not stimulate domestic spending and consumption to build USA jobs.

instead this "hot money " (see my initial QE thread in Kopitiam) will cause inflation to be imported free to every country, from the good old US of A.

I will expect Big Mac burgers to push upwareds in the range of SGD$4 each soon :(
 

Feb 10, 2010
503
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#12
in any case, the foreign currencies are surging against USD . EURUSD up from 1.26 last week to 1.31xx this morning, kind of insane.
Implications of QE: Massive liquidity in USA , which will not stimulate domestic spending and consumption to build USA jobs.

instead this "hot money " (see my initial QE thread in Kopitiam) will cause inflation to be imported free to every country, from the good old US of A.

I will expect Big Mac burgers to push upwareds in the range of SGD$4 each soon :(
Theres the $2 doublecheese burger still. Just hope they don't shrink the burgers like they did with Burger King.
 

Shizuma

Senior Member
Mar 19, 2012
2,557
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#13
for those thinking USD will weaken significantly against SGD be reminded our MAS quite power to adjust NEER band and will not allow SGD to appreciate significantly such that SGD is "too strong " . strong domestic currency no good for economy
 

hanzohattori

Senior Member
Apr 16, 2010
999
5
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#14
for those thinking USD will weaken significantly against SGD be reminded our MAS quite power to adjust NEER band and will not allow SGD to appreciate significantly such that SGD is "too strong " . strong domestic currency no good for economy
Well.. they have to be cautious too. The big guns already eyeing for some action now that they have extra liquidity from QE3. If they spot too much government intervention, its Soros all over again.
And how much firepower do they have?
 

Shizuma

Senior Member
Mar 19, 2012
2,557
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#15
Well.. they have to be cautious too. The big guns already eyeing for some action now that they have extra liquidity from QE3. If they spot too much government intervention, its Soros all over again.
And how much firepower do they have?
many citizens are wondering when they are eligible to withdraw their CPF savings... ;)
 

ricohflex

Senior Member
Feb 24, 2005
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#16
Some US banker's great idea.

http://www.bloomberg.com/news/2012-...risk-transforming-collateral-for-traders.html

Quote from Bloomberg article:

[At least seven banks plan to let customers swap lower-rated securities that don’t meet standards in return for a loan of Treasuries or similar holdings that do qualify, a process dubbed “collateral transformation.” ]

UnQuote


Is collateral transformation the new poison? No wonder the US regulators cannot control them.
 

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hanzohattori

Senior Member
Apr 16, 2010
999
5
18
#17
Some US banker's great idea.

Big Banks Hide Risk Transforming Collateral for Traders - Bloomberg

Quote from Bloomberg article:

[At least seven banks plan to let customers swap lower-rated securities that don’t meet standards in return for a loan of Treasuries or similar holdings that do qualify, a process dubbed “collateral transformation.” ]

UnQuote


Is collateral transformation the new poison? No wonder the US regulators cannot control them.
I think thats the idea of QE, at least partly.. to get toxic assets out of the system so that financial institutions start to lend again, thus oiling the economy.
 

Shizuma

Senior Member
Mar 19, 2012
2,557
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#18
I've seen how bomb disposal squads work, they have controlled detonation.
what collateral transform seems to suggest is to put the suspiciously ticking object into a tupperware
 

ricohflex

Senior Member
Feb 24, 2005
3,353
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#20
May create a false sense of prosperity. Rewind the clock to the 1920's, US folk were feeling prosperous before the 1929 crash.

Mr X gets his worn out running shoes, bashed up Polaroid camera, some tinned food that were past expiry date from his kitchen and brings them to his bank. They do a "collateral transformation" for him. He gets a $1 Million bank loan. He goes on a spending spree. He feels rich.
In the mean time, more paper money is printed QE1,2,3.......(4,5,6,7,8,9?)

Multiply that by the US adult population, e.g. 250 million = $250 Trillion.

Still, that is smaller than the derivatives market total which is about $640 Trillion.
 

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