Wednesday, May 23, 2012
When Will The Federal Reserve Begin Printing Money?
Not being an insider, I don’t know. However, here are some of the estimates:
1.When the S&P500 gets down to 1150 (currently at 1290) where it was last December.
2.When the 10 year Treasury yield gets down to 1.5% (where it was the last time they intervened.)
3.When we get a series of really bad numbers on the economy (like the Philadelphia Fed report last week.)
4.When Chairman Bernanke “sees” prices decline (i.e., Consumer Price Index) as he fears deflation.
5.When Chairman Bernanks needs to keep the dollar from rising too high (which hurts exports and the recovery) and because he needs to support the Euro to prevent a disaster.
6.When Chairman Bernanke needs to help the European Central Bank flood the financial system with liquidity if/when Greece votes to exit the Euro and austerity.
Labels:
Chairman Bernanke,
ECB,
jim zitek,
printing money
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