If the S&P drops by another 10-20% for sure you will get QE3

Marc Faber : "...No further stimulus. We have to qualify that statement. I think they will end QE2 and not tighten monetary conditions, but there could be a relative tightening the way we had it after the end of QE1 until QE2 was announced last August. So for the next three months or so, asset markets will continue to drift lower. Traditionally the month of May is very weak.Also June and then from June on, we have some seasonal strength developing until the end of July, early August and then we have weak September-October months, seasonally speaking. The markets are oversold at the present time. We could re-bounce somewhat from herein to the end of July and then have another ground draft in October-November, but my forecast is very simple. If the S&P were to drop from here by, say, another 10-20%, for sure, for sure you will get QE3. There is no doubt about this." - in ET Now

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!