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QE 2.5?


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This is the first financial article I have read in the past 3 weeks. I suppose you could characterize rolling over mortgage debt to Treasury bonds as QE 2.5, but honestly I never had too much doubt that they wouldnt do this. However, I should of stuck with my gut feeling back about 6 months ago, I was absolutely wrong when I believed that the economy would grow at 3.5% in the first half of this year, I figured the slowdown was gonna be in the second half of the year.

 

Ben Bernanke, this is how he deals with things, prints more money with the hope that something will stick, he wont change course now. Also, there is gonna be some more cuts not just on the state and local level but now on the federal level and that won´t help grow this economy over the short-term either.

 

This is the new normal.

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