Posted by rahrens_1 on June 14th 2011 at 08:16 am
Yra Harris, a former Jim Sinclair business partner, had an interesting piece out on what the Fed may do next. He references a speech Bernanke did on Japan’s situation in 2000 and how he is likely open to trying many different options. This leads Yra to speculate that the Fed may not do a formal QE3 but instead fix long term rates at a level that would lead to effective negative returns thus pushing money out of bonds and into other assets. This approach was apparently used in the US from the mid 40′s till 1951.
See full article here.