re: Weak Retail Numbers = More Fed Pumping

quote:

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I prefer looking at QE like crack......try to quit and there will be at least withdrawals. Its not going to be fun or pleasant.

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That's one way as well, some of my colleagues (and myself) used to call it financial heroin, then we had to start explaining QE/ZIRP to clients. I actually misquoted myself there, QE is surgery and ZIRP is ICU. You have to put someone out before you can do surgery, however you have to make surgery effective. You can't do too much as the patient's natural processes may be permanently affected. However, you can't do too little as the surgery will be ineffective (Japan). Also, when surgery is done, you can't just bring them back immediately, you have to give the body time to rest. Similar to raising rates after ending QE, can't do it all at once as it would be too much to rattle the markets.