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[2012] QE3 vs the Debt Ceiling

By tdeloco   Follow   Sun, 24 Jun 2012, 11:27pm   519 views   3 comments
In San Jose CA 95112   Watch (0)   Share   Quote   Permalink   Like   Dislike  

For some reason, the market was expecting the next QE last Wednesday the 20th of June. That puzzles me since we're so close to the debt ceiling, there's no room for a QE. At the time of this writing, the debt clock is at $15.81T, and the debt ceiling is at $16.39. That gives us less than a hundred billion a month from now until the end of the year.

Don't get me wrong. I think we'll simply raise the debt ceiling. And no, we won't default, at least not anytime soon. And if we do, it probably won't be an honest default.

All I'm saying is that there is no room for QE3... at least, not until after congress had increased the debt ceiling. Bernanke has no power over that.

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1. woppa Follow Befriend (3) 2 threads 179 comments Bronx, NY

   1   5:43am Mon 25 Jun 2012   Share   Quote   Permalink   Like   Dislike   If we do hit the ceiling before November it should make for some interesting events. And I think we will hit it in September at this rate.

2. FortWayne Follow Befriend (13) 106 threads 3,863 comments

   2   7:46am Mon 25 Jun 2012   Share   Quote   Permalink   Like   Dislike   They'll strike a deal last minute, not without some significant drama. Both parties know that we need significant spending cuts, and both want to blame each other for any cuts that will occur... politics will be entertaining.

3. tdeloco Follow Befriend (2) 11 threads 218 comments San Jose, CA

   3   10:55am Mon 25 Jun 2012   Share   Quote   Permalink   Like   Dislike   FortWayne says They'll strike a deal last minute, not without some significant drama. Both parties know that we need significant spending cuts, and both want to blame each other for any cuts that will occur... politics will be entertaining. Exactly. In the nick of time, a deal will be struck, and the politicians have saved the day. But what about QE3? All I'm saying is that there's no room for QE3 at this time.