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Stocks, more than housing, seen as initial QE3 winners

By tovarichpeter   Follow   Sun, 16 Sep 2012, 10:57am   279 views   1 comment
In South San Francisco CA 94080   Watch (0)   Share   Quote   Permalink   Like   Dislike  

http://news.yahoo.com/stocks-more-housing-seen-initial-qe3-winners-120507234--business.html

Mortgage rates are already near record lows, they point out. But it is also quite possible QE3 will help the economy in other, potentially more powerful ways. By giving an open-ended commitment to pour money into the market for mortgage-backed securities, the Fed will likely keep on supporting stocks and other asset classes by keeping returns low on MBS. Investors in search of yield will have more reason to buy equities and to lend money to companies. Peter Hooper, an economist at Deutsche Bank in New York, thinks the Fed's bond buying program will add at least a half a...

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1. michaelsch Follow Befriend 21 threads 581 comments South Pasadena, CA

   1   2:47pm Mon 17 Sep 2012   Share   Quote   Permalink   Like   Dislike   The only point of QE3 is rewarding bad financial decisions. Stocks bulls may hope the payments will raise the stock market, such predictions are by themselves self fulfilling. One thing is clear it will make America even less competitive and will make the collapse of our economy even quicker.