Pick up on line one, please. It is time for Helicopter Ben to do what he does best - rain money on us.
Consumer spending came in @ negative 0.2% this morning. With no inflation anywhere, both Core PCE and Personal Income came in @ 0.1%, and all the weak econodata released in the last month, it is obviously no-brainer for FED to announce the beginning of QE3. Let's call it something else and go on with it already. I would say before the end of August, Mr. Bernanke will announce the savior program to help the market cope with the idea that US Economy is heading for yet another possible recession, or stagnation, or anemic growth at best.
DXY is weaker this morning, equities are not falling off the cliff, and gold is skyrocketing. I believe it is all a result of the notion that QE3 is about to start. Mr. Market is way ahead of you, sir. Yield on 10-yr Note is now the lowest since November of last year. Please follow us, once again, we have no time to wait.
UPDATE Aug 2 @ 2:05
Full-fledged panic on market.
Watch "FED speak" to hint us on possible QE3 in the next week or two. They will "whisper" their thoughts into our ears first. They are getting market's message loud and clear now (no pun intended).
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