Bill Gross Warns QE3 Is Coming In The Form Of "Operation Twist" For The 2 Year

Bill Gross released a very troubling tweet earlier:




'Why is it odd? Because as David Rosenberg predicted two weeks ago when he expected that Operation Twist could be coming back with the Fed "capping" the 10 Year, Bill Gross, who has Larry "Fed Expert Network" Meyer in his ear and thus knows better than most what is coming, is predicting some "Twisting" though not at the 10 Year mark, but at the very short end. This is very disturbing. Because as we suggested at the end of May, QE3 will in reality be Operation Twist 2...

This means that Rosie's prediction that "the Fed would basically lose control of its balance sheet" could be about to come true, and in fact be far worse than expected, because it would mean that not only is the Fed no longer able to control the 10 Year but is concerned about controlling the 2-3 Year sector, a place on the curve that the Fed chairman has typically never had much to worry about.'

http://www.zerohedge.com/article/bill-gross-warning-operation-twist-coming-2-year

 

Is this going to be the next QE?

 

These central planners are such arrogant buffoons. They will destroy this country.

 

I hope QE3 comes. We need the liquidity to get the economy back on track. Plus a little inflation with help debtors.

Thanks for the good news.

 

but that liquidity isn't reaching Main Street. It stays suspended in the stratosphere of commercial banks injecting it into equity markets. I hear the commercial bond market has gone bonkers due to the huge volumes of money that will chase after anything.

 

Fine banks for keeping reserves above the Fed Minimum (instead of rewarding them as we are now). Increase taxes on Corporate reserves that aren't reinvested in the year of accumulation.

Problem solved.

 

You honestly think the fed gov't. is going to go after their biggest campaign/personal contributors?

No offense, but you cannot be that naive.

 

Ah that meme.

I honestly think democracy works, if people take responsibility like adults, instead of acting like teenage boys who whine whenever they don't get their way.

 

Yea, more central planning is what we need. It's worked so well in the past...

 

It works in every other country, so it's time we try it. Oh, I get it by "central planning" you don't mean industrial policy you mean any rational regulation.

Dereguation = BP disaster and the Bush Recession.

 

Government ordering banks to make home loans to people who can't pay them back is a legacy of central planning.

 

help them not afford food ?

 

BP was virtually a business partner with the Obama regime (like GE) at the time the well in the gulf blew, and the incompetence Obama showed at responding to it is central planning at its finest.

 

Why let poverty get in the way of the biggest bubble in the history of the world?

 

Yes, so they become more dependent on the state.

 

that's the kind of help all debtors need.



I have a great idea, extend more debt, to people who cannot afford pay their current debts, then make their costs of living more expensive.
That'll stimulate the economy for sure. Back on the road to prosperity !

 

Pssst: deregulation by Bush. Bad idea.

And I love your revisionist history. It's peppy and fun.

 

It's not deregulation when goverment orders banks to make loans to poor people who can't pay them back.

It's central planning.

 

I'm glad that didn't happen.

You need to stop reading Tea Party signs.

 

No, so I'm glad that didn't happen.

Try to get out of your fact-free zone. People are starting to notice.

I love it when conservatives try to trick you into their memes.

 

The government is the biggest subprime borrower on the planet right now.

 

You mean people the world over are dying to buy t-bills because unlike you they realize that the US government and the US economy is the safest haven in the world in an uncertain financial situation.

Is that what you mean?

Only in Tea Party land is getting people to give you low interest loans in the trillions a bad thing.

 

No. The buyers are drying up fast.

Nobody in the world believes what Obama is doing is working.

 

A lie. It has never outperformed markets, ever. It is an abject, historically manifest failure that defies the laws of supply and demand.

We've been trying it since 1913.

No, by "central planning" I mean "central planning". One example would be our central banking system.

 

Loans you can't pay back are still subprime loans, no matter what the rate of how much you borrow.

Obama is just another borrower of a liar loan.