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Bianco: Odds of QE3 Increasing Rapidly

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  • Description

    Bianco Research president James Bianco gives his outlook for the Fed and quantitative easing.

  • Duration 2:35
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This transcript is automatically generated

-- so many on Wall Street are expecting more Federal Reserve intervention this month.

Jim -- -- -- said that you know basically couple weeks ago -- even before the bad -- number he's with us now Bianco research -- thanks for being with us.

How much.

Percentage -- did the chances of QE3 go up.

After that bad jobs report on Friday.

I would have put the odds it like 5149.

You're gonna get QE before the jobs report and I put it at 75%.

Right now.

That you're gonna get it I think everybody's looking for I think the Fed's gonna start the debate it.

They don't have to do it right away because Operation Twist doesn't end until the end of the month.

But it's something that I think has very good odds of happening as the summer wears on and so July August what does that -- them.

I think that they'll probably announce it before Labor Day.

November 2010 every reacts about the politics of it in 2010 they actually did Bernanke hinted strongly -- so much everybody thought it was coming.

At the August.

Jackson hall meeting and he made it down -- of the day after the mid term election.

So you can't get an announcement something -- that during the summer and if they wanna push it off and started.

You know middle of November that that would be within the precedent that we saw in the last election cycle but at that point the market will expect it and those are trading as if it'd happened.

Well and if they do that some wondering what will stocks doing wire stuck doing analysis are supposed to be looking for for the next three to six months.

When are -- getting into the question there's always two questions with the -- what should they do and what will they deal.

And I think -- will they do is they would do QE3 I think they should they do -- should they -- has never done one into and twist.

I'm not a big fan of all of this.

And I think that the stock market is starting to realize that this doesn't work this meaning all this quantitative easing trying to push up the economy it does manipulate interest rates it may manipulate stock prices but it does not help the regular person that does that create jobs.

It may create higher gas prices so I think the stock markets had a -- data out.

And that it may not have the -- is that the Fed wants.

But the Fed only knows one thing -- since 2008 and that's doing quantitative easing so they'll probably do it and I don't expect much from it OK so that they will do it won't help stocks but that won't help the economy.

Just one quick 102 answer what should they do instead.

Nothing trust capitalism the markets are -- side that there's off balance in the economy.

Let that all sort itself out it may be ugly for a while but then it'll be better for decades.

Just trust that it will fix itself I like the message I wish the market for listen a little harder thank you very much.

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