QE 3 at a Whopping USD 600 million

Another round bring the total to a tune of USD 2.9 trillion, QE 1 and QE 2 stands at 2.3 trillion. This was done, the QE 3, for the single reason to strengthen the US economy. One of the many sectors, is the job market, the Fed's intent to bring it down to 7% unemployment from the current 9%.

According to the Fed's statement last week, they will be "highly accommodative" in terms of their monetary policy and they will "remain appropriate for a considerable time after the economy recovery strengthens"

Since the sub prime crisis 3 years ago the housing starts has increase to 765,000 annual rate owing to record low borrowing cost and very cheap properties from the foreclosures. A sign of better times to come but slowly.

This QE 3 USD 600 billion again will see a slur of events unfold, namely reduced unemployment but will be far from the pre crisis range of 5% unemployment.

Whilst a recession is happening in the US, EU, UK of bond buying and the PIGs nations are delaying repayments - Asia, Asia Pacific are seeing a whole different situation. In Australia, its is running a budget in order to return to surplus this year, yes 2012. India is looking at a growth of 8.2% with most other countries expecting growth but reduced form their projections earlier this year.

Till then and Adios.

TjLim