It looks like all sorts of risk markets have taken off for the sky with all such markets looking at brand new multi-year highs or at least looking to reach there. Even today's underwhelming Nonfarm payroll jobs number could not dent the continued enthusiasm for central bank action past, present, and future. How long this will last is the question. In regards to the ECB, it is no longer hope but a known quantity, the newly announced and oftentimes leaked Outright Monetary Transactions (OMT) for "unlimited" bond buying on the short end of Euro sovereign debt. The bond buying program is said to be sterilized. Despite that claim, gold prices have shot up dramatically these past few weeks and continue to outperform risk markets. Next on tap is the FOMC decision. Some anticipate QE3 sooner than later, especially since Bernanke has mostly focused on the employment part of the Fed mandate as of late.
Showing posts with label central banks. Show all posts
Showing posts with label central banks. Show all posts
Friday, September 7, 2012
Friday, August 31, 2012
Central Bankers at Jackson Hole
Well, the much anticipated Jackson Hole Bernanke speech has come and gone. Everyone from bloggers to the big fund managers have taken drastically different interpretations of the speech. Some argue that the speech was even more bullish than announcing a definite QE3 right then and there. Others interpret this as definitely indicating that there will be no QE3 soon and definitely not before the election. On Twitter, PIMCO's Bill Gross claims
"#Bernanke to go out with his guns blazing. #QE3 a near certainty. It will be open-ended but increasingly impotent."Most of the I-bank analysts interpret the speech as calling for more easing and on fairly quick order.
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