The most important upcoming day is not Election Day November 2nd, but rather, the day after, November 3rd. Why? That is the day the Federal Reserve is expected to announce QE2 (Quantitative Easing #2 – more money for the system.) However, there is currently an internal civil war occurring at the Fed since some believe that QE2 will do more harm than good. Those in opposition argue the banks will simply hold onto the money and not loan it out, choosing to build up their cash reserves as the foreclosure fiasco continues to develop. (This foreclosure fiasco will be worse than the Lehman affair.) The stock market has built QE2 into its expectations. What happens if it doesn’t take place?
November 2nd? Just a sideshow for November 3rd.
Till next time,
Bill
P.S. – In Europe, anarchy can be defined by angry participants taking to the streets. In the United States, anarchy can be defined by not paying your mortgage because it’s a “broken chain of title.” More on this next time.
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