Friday, September 14, 2012

US Credit rating cut to AA - as Fed increases QE

Ratings firm Egan-Jones cut its credit rating on the U.S. government to "AA-" from "AA," citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country's credit quality.

http://www.cnbc.com/id/49037337


Perma-QE: Lessons from Bernanke's Latest Splurge



http://www.marketoracle.co.uk/Article36525.html

The Fed’s launch of QE3 looks more than a tad desperate. If you believe the central premise of the Fed’s action, that propping up asset price gains would have enough effect on consumptions to lift the economy out of stall speed, it would seem logical to sit back a bit and let the recent stock market rally and the (supposed) housing market recovery do their trick. But the Fed has finally taken note of the worsening state of the job creation in an already lousy employment market and has decided it needed to Do Something More.
Read more at http://www.nakedcapitalism.com/2012/09/the-feds-qe3-no-exit.html#Gv1iHbCxHdDBXjPh.99


Global stock markets have risen after the US Federal Reserve moved to kick-start recovery by pumping more money into the economy.
It followed the Fed's decision on Thursday to inject $40bn (£25bn) a month into the US economy.
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