And since speculation that we'd be getting QE3 caused yesterday's rocketing Dow, today . . . down it goes. Now down 173..
Aug. 25, 2011, 9:27 a.m. EDT
Jackson Hole guests tell Fed to keep rabbit in hat
Many at Jackson Hole don’t want to see QE3
By Greg Robb, MarketWatch
JACKSON HOLE, Wyo. (MarketWatch) — As prominent economists gather here for the scenic Federal Reserve’s annual summer retreat, many said they don’t expect, or even want, Chairman Ben Bernanke to try to pull a rabbit out of his hat to please the stock market.
Bernanke will open the Fed conference with a speech on Friday morning at 10 a.m. Eastern. Stocks have moved higher this week after being pummeled in mid-August, and many analysts attribute the move to investor hopes that Bernanke will use his speech to promise another round of asset purchases, or QE3.
Economists said that the recent weakness in the economy stems from structural issues like foreclosed properties and an unskilled pool of unemployed labor that are immune from monetary policy stimulus.
“I hope he talks about the limitations of monetary policy,” said Mickey Levy, chief economist at Bank of America.
Fed policy is very effective at preventing a downturn but once weak demand is in place, monetary policy cannot lift it, Levy said.
“All the targeted counter-cyclical stimulus is not going to address the huge pocket of distressed properties,” Levy said.
John Silvia, chief economist at Wells Fargo, agreed that the woes facing the economy are structural in nature and described the Fed policy options as modest.
“The Fed has shot the big cannons. They are now playing the game with smaller ammunition,” Silvia said.
Full story: http://www.marketwatch.com/story/jackson-hole-guests-tell-fed-to-keep-rabbit-in-hat-2011-08-25
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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