from Zero Hedge:
“While most are focused on the risks around a withdrawal of liquidity, we believe the biggest hit to confidence could be the opposite: if another round of US QE is necessary to prop up the economy. While the market could have a knee-jerk rally on an indication of forthcoming stimulus, we think this would likely be short-lived and could end in the red. QE fatigue is already evident: each subsequent round of QE has seen diminishing risk rallies. Another round of QE would imply that $4.5 Trillion was not enough. And it would also likely have a very negative read-through for QE programs currently underway in Europe and Japan.”
In other words, the Fed is cornered.
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