David Rosenberg sees QE3 coming

Well known economic bear David Rosenberg, chief economist at Gluskin Sheff & Associates, David believe that the real unemployment rate is actually closer to 12 percent than 9 per cent , the rising consumer spending is mostly due to the rising inflation in food and fuel , David believes that there are great chances that the FED will announce a QE3 may be this sumer or in a year from now....




“When it comes to the stock market as an asset class, in the past two years, there has been an eighty eight percent correlation between the movements in the Feds balance sheet and the direction of the S&P 500.” So, will the Fed inflate the money supply in perpetuity? This could be ugly. I know that I am not going to get on the wrong side of this bubble!

Joseph Stiglitz for Full Employment as an Entitlement

Nobel Laureate Joseph Stiglitz is for a full employment as an "entitlement" and a government responsibility for the workers , :" ...we need social protection ,... workers eventually can't control the economic environment , you know in the old economy , agricultural economy you could work your field you're still buffeted by vagaries and the weather international prices but you can always get a job because you could always work your own field , but in a modern economy if firms are firing you have no choice there are very limited opportunities that the individual has , so it is the responsibility of the state the government to maintain the economy and ful employment and we recognize that ion the Full employment act of 1946 unfortunately we are not living up to the commitment we made in 1946 to maintain the economy and the full employment , we have one out of six workers that are unemployed and increasingly large number are unemployed right now for over six months ..."