Friday, May 17, 2013

More on The BIS and The End of QE

Great minds and all that.

Following up on "BIS General Manager: 'Loose Central Bank Policies Looking Increasingly Dangerous'":
I'm trying to figure out if the rising drumbeat of hints of and calls for Fed tapering are a coordinated scheme of pre-announcement or if they've risen spontaneously, akin to the concept of "multiple discovery" in science.
I'm leaning toward the former....
From FT Alphaville, yesterday:
The end of QE?
Marc Ostwald at Monument Securities has spotted that an important theme is developing: a rise in the number of warnings about QE suspension and QE exit.
As he noted on Thursday regarding the recent warnings from the BIS and the IMF:
To my jaundiced eye, I would have to say that the warnings below from the BIS and IMF within one hour of each other today on QE, suggests that this is the beginning of the end for QE! Am not sure that everyone else will share that view, but this cannot be a simple coincidental warning shot that has no material consequences – watch this space!...MORE
And today she ties it all up with a neat little bow:
The US collateral shortage lives on
...Arguably, by bringing collateral or new issuance back into the market, something which is most easily done by suspending QE if not beginning to reverse it....MORE