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FOX Business Live at 9:37am


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Just heard this on Fox Business LIVE at 9:37 am PST. Cheryl Cassoni interviewing Sal Cantrini, a Cantor Fitzgerald Equity strategist.

Sal: "The latest rumor making the rounds of speculation out there from very credible people, I might add, is that there could be a huge intervention this weekend with all the central banks around the world; the ECB, the FED, the DOJ all coming into a major intervention, maybe an additional QE as soon as this weekend going into G7."

Cheryl: "A global intervention or a European intervention?"

Sal:"A global intervention; that's the latest speculation that's going around the street."

Global monetary stimulus (Guest comment)

( ONLY 1 COUNTRY CAN DO THAT IN MY OPINION ) The rest are broke

Sal: "It's speculation but QE has been part of that speculation"

Cheryl : "We have some good journalist here, we'll check it out."

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What does this mean for us? Can I get some Cliff Notes please!?!? :0)

Definition of QE if anyone needs it (like me)

Quantitative easing

From Wikipedia, the free encyclopedia

Quantitative easing (QE) is an unconventional monetary policy used by central banks to stimulate the national economy when conventional monetary policy has become ineffective. A central bank buys financial assets to inject a pre-determined quantity of money into the economy. This is distinguished from the more usual policy of buying or selling financial assets to keep market interest rates at a specified target value.

A central bank implements quantitative easing by purchasing financial assets from banks and other private sector businesses with new electronically created money. This action increases the excess reserves of the banks, and also raises the prices of the financial assets bought, which lowers their yield.

Expansionary monetary policy typically involves the central bank buying short-term government bonds in order to lower short-term market interest rates (using a combination of standing lending facilities[8][9] and open market operations).However, when short-term interest rates are either at, or close to, zero, normal monetary policy can no longer lower interest rates. Quantitative easing may then be used by the monetary authorities to further stimulate the economy by purchasing assets of longer maturity than only short term government bonds, and thereby lowering longer-term interest rates further out on the yield curve.

Quantitative easing can be used to help ensure inflation does not fall below target. Risks include the policy being more effective than intended in acting against deflation or of not being effective enough (if banks do not loan out the money).

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