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HomeHow Big Is the Punch Bowl?
Posted by Larry Doyle on October 7th, 2010 1:00 PM |
Party on.
In watching a midday Bloomberg interview, the host Tom Keene asked his guests just how big the punch bowl will be that Fed chair Ben Bernanke puts in front of investors at the next Fed meeting. The punch bowl being the size of the highly anticipated second round of Federal Reserve quantitative easing that is driving interest rates lower and asset prices higher.
While this punch bowl may be smaller than the initial party launched in 2009, the fact is expectations are that this punch bowl will run anywhere from $500 billion to $1 trillion in size. That is a lot of liquidity to keep the Wall Street party going. However, that figure is also a very strong indication as to the enormity of the underlying problems embedded in our economic foundation. (more…)
