QE3? Ben is an A$$

I wrote a couple of months ago that I though QE3 was baked in the cake. Odd thing is that most folks thought then it would never happen but a lot more are thinking now it might or likely will happen. Funny how a lot of market turmoil can change a lot of thinking. I am thinking right now, however, it is not too likely just yet, as three of the voters on the Fed voted against the relatively benign statement of keeping interest rates low until 2013. And that is the last time three dissented in nearly 20 years. Go figure.

http://www.businessweek.com/news/2011-08-21/jackson-hole-bankers-reflect-on-qe2-amid-pressure-for-stimulus.html

Mind you, I think helicopter Ben would do QE3 tomorrow if he could but there seem to be some more reasonable folks that he needs to convince - and let's all hope his powers of persuasion are not working too well right not. QE1 and QE2 were total failures so I am not too keen on a repeat.

Still, let's not fool ourselves on Ben's plan here or what he has been doing. He does not give a rat's a&& about the regular Joe on the street. He has been all about saving the big banks and providing them with liquidity. QE2 did this and much of it supported international financial institutions, not just domestic.

Seriously, Mr. helicopter loaned out over a trillion dollars with hundreds of millions going overseas. Don't believe me, read it here:

http://www.bloomberg.com/news/2011-08-21/wall-street-aristocracy-got-1-2-trillion-in-fed-s-secret-loans.html

This guy was on a tear and throwing money at any bank or financial institution that moved. And we now know how well that worked out.

LET ME SAY ONE THING HERE YOU HAVE TO DO, READ THE LINKED BLOOMBERG ARTICLE ABOVE. IT IS EARTH SHATTERING IN ITS REVELATIONS ON THE FED.

Bottom line, the Fed has been more of a problem than a cure for a long time. Between Greenspan and Ben there has not been a lot of proper analysis at the helm. It is in need of serious brain power and really soon.

Disclosures: none