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Street Smart: Here Comes QE2, but Do You Know What It Means? [VIDEO]

by Nikhil Hutheesing Nov 1st 2010 5:00PM
Updated Nov 6th 2010 12:10PM
Drop the term QE2 and many people will think you are talking about the British monarch or a luxury ocean liner. But Gary Shilling, president of A. Gary Shilling & Co., explains that while there may actually be some comparisons to ocean liners, QE2, which is expected to be announced by the Federal Reserve on Wednesday, actually refers to the second stimulus plan that is about to hit our economy.

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14 Comments

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Sonny

Huge Federal Deficit.........and no one else buying our debt/treasury bonds........it is the only way to sustain this huge federal spending. It will bite all of us...especially the savers, in the form of huge inflation .............. and everyone sleeps...What a Tradegy!

November 08 2010 at 10:52 AM Report abuse rate up rate down Reply
scottee

QE2 means that The Fed needs to be audited and ended and that our dollar needs to be put back on the gold standard. I hope the tea party candidates in Washington will demand that.

November 07 2010 at 7:33 AM Report abuse +1 rate up rate down Reply
1 reply to scottee's comment
scottee

can't we stop Bernanke? we need Volcker back and Obama needs to listen to him and Ron Paul.

November 07 2010 at 7:37 AM Report abuse +1 rate up rate down Reply
rammiser18

Except that they aren't loaning out money! Heck my CC bank is refusing to lower my rate because 'lending is more expensive' (what happened to all that taxpayer money they were given?). Yet my Credit Union offers a Visa with a low FIXED rate of 7.9%...I've switched to that and am paying off the other one. Besides, with the VISA, I am essentially paying myself back since I'm actually a MEMBER (read: owner) of my credit union, instead of just a number to a bank.

November 03 2010 at 8:43 AM Report abuse +1 rate up rate down Reply
vdema26408

The details when published will show how the "to big to fail banks" will end up with a minimum of 30% of this "stimulus" The objective here is simply to "stuff" the banks with equity so they will start to loan out money.

November 02 2010 at 8:36 PM Report abuse rate up rate down Reply
bowser74

I think were doomed there is going to be a financial collapse very soon and were 3rd wolrd or less.

November 02 2010 at 5:42 PM Report abuse +3 rate up rate down Reply
BUFFALO

How about a hands off approach? They print money and the what? Lend it for nothing?Buy back bad debt? Pay intrest on our bonds?Bail someone out? What the FEDS are doing is deflating our dollar and then giving money away.The FEDS should stick to monitory policy and stay away from economic issues.There is plenty of money out there they should be taking money out of circulation like they said they where going to do last time they where busy bailing out the banks..

November 02 2010 at 4:33 PM Report abuse +3 rate up rate down Reply
1 reply to BUFFALO's comment
scottee

The Fed should be audited and ended...same with the department of education and department of energy...and our troops in foreign countries should be brought home.

November 07 2010 at 7:35 AM Report abuse +1 rate up rate down Reply
Mason Benson

FANTASTIC REPORT ACCOLADES FINALLY THOROUGH INTELLIGENTLY PRESENTED.......MORE LIKE THIS PLEASE......

November 02 2010 at 2:42 PM Report abuse rate up rate down Reply
kanometz

where does the FED get the money from when thy write a check to the banks???

November 02 2010 at 7:37 AM Report abuse +3 rate up rate down Reply
3 replies to kanometz's comment
marine1942

Yes, I know the Fed borrows on future tax receipts and the grandchildren will never get out of debt. You go to Pay Check store and borrow, then next week do the same, etc. until your whole pay check goes to the Pay Check ( China maybe ) Pretty simple and pretty dumb

November 01 2010 at 7:51 PM Report abuse +7 rate up rate down Reply
1 reply to marine1942's comment
Donald G

Since our creditors now see us as a risk they are less prone to loan and if they do then at higher rates. ( We claim our rating is AAA but those who lend to us have it much lower). Thus we are now in the position to do QE2. This is a hidden tax on the middle class that will lower the value of the dollar - thus inflation. Due to high unemployment we will have inflation and falling wages. This is the worse scenario possible.

November 02 2010 at 10:27 AM Report abuse +2 rate up rate down Reply