Who Cares About Sterilization? The Fed Pretty Much Just Announced QE3 |
| March 13, 2012 | March 2012 Bond Updates |
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A report that the Fed is considering “sterilized” QE sparked a risk rally that shouldn’t really make sense. On the one hand, the breakdown of the how the Fed would actually execute the operation provided nothing new, on the other, “sterilized” QE would amount to a capital injection that puts enough restrictions on that capital to make it unusable, making the injection neutral at the end of the day, at least in terms of speculative capital. |
| View more at: http://www.forbes.com/sites/afontevecchia/2012/03/07/who-cares-about-sterilization-the-fed-pretty-much-just-announced-qe3/ |
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