On QE’s Effect on Gold, Emerging Markets and Other Links

The QE1, Victoria Harbour 1972

QE’s effects and afterthoughts

The Fed came out with a plan that was devilishly clever in that it was not geared to the short end but also allowed the banks to continue to benefit from a steep yield curve by dampening rates in the belly of the curve. This is having an impact beyond bonds though as the market was up 2% across the board. Emerging market, European, Asian shares were all up. Gold, silver and commodities are all up too. Asset price reflation is what we got on day one of QE2.

The QE2, not looking a bit naff

The Usual Fare

Credit Writedowns

Tech Stuff

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