Thursday, September 8, 2011

Is G7 Coordinated Stimulus/Easing Surprise Coming?

I am no conspiracy theory subscriber. But some players in the markets are expecting some kind of coordinated bazooka stimulus/easing by G7 and CBs this weekend. I see how maybe the case could be made. ECB, BOE, BOJ, and BOC are participating in the meetings. They all passed on any action in their meetings this week, but all appeared very concerned about recent growth deterioration in their countries as well as entire world. Fed Chairman will be there as well, and just said he is open to further action to stimulate the economy. Again, I am not suggesting this will happen. But why have they all done nothing at their respective meetings this week? Especially when they sounded so concerned about the slowdown. Are they waiting for this weekend to coordinate and surprise the markets with shock and awe? We will see...

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