QE doesn’t work. The economy is muddling along. It is not worsening. QE creates uncertainty among market participants and consumers. Why do it now?
Manufacturing is soft, employment is improving too slowly.But at the end of the day will more liquidity pumped into a market that isn’t using the liquidity it already has at its disposal gonna make a dime’s worth of difference?
Nope.
After the upbeat data this morning, the stock market is roaring and bond yields are soaring (ok, that’s a stretch, but 10s are up a hefty 6 bp to 1.65%). Looks like Mr. Market likes him some economic growth and does not subsist on liquidity alone.
