Tuesday, November 2, 2010

QE expectations

http://macro-man.blogspot.com/2010/10/you-know-qe-expectations-are-getting.html

You know QE expectations are getting a bit out of hand when...

1. Goldman calls for $2trn.
2. Rumours fly around that the Fed may eventually do $4trn.
3. China starts complaining that the Fed is about to purchase $1trn of USTs despite buying a similar amount themselves.
4. Xerox is up 36% since Jackson Hole.
5. Your Mom calls you asking what QE is.
6. The BoJ buys a promissory note from TMM for $1bn whose principal is equal to their combined yearend bonuses price in Gold today.
7. IBM issues a super long bond.
8. Mexico issues a really super duper long bond.
9. You find out that both of these organisations have a guy who had Bernanke as a thesis advisor in their Economics PhD program before joining their respective Treasury departments.
10. Greek tourist-tat shops sell QE wallets three times the size of normal ones.
11. The guy that trades European Telecoms on the Equity floor explains to you how QE works.
12. The TDI (Taxi Driver Index) flashes Red when your taxi driver starts using QE to justify the Gold he bought in May.
13. A word score of 36 in Scrabble is nicknamed "scoring a QE" in old folks homes.
14. Your FX sales shag starts giving you minute by minute updates about 10s30s, but doesn't know what "10s30s" is.
15. Handing out an extra 200,000 quid to all players when any one goes bankrupt is now mandatory and in the official rules of Monopoly.
16. The DPI (Dinner Party Index) flashes Red when you are in Islington and the Guardianistas around the table start debating just how much more QE is needed.
17. Your Mom calls you back and asks if she should put her 401k in Gold to hedge against inflation.
18. Bill Gross, an otherwise nice guy, goes on a rampage, and while not naming names is clearly not happy with the FOMC right now.
19. The UK decides to privatise the Royal Mint.
20. Your Mom calls you again and explains to you how QE works.

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