Wednesday, March 28, 2012
PIMCO: QE3 in Sight!!
Pimco has been buying mortgage-backed securities for months in anticipation of another round of quantitative easing , the so-called QE3, when he thinks theFederal Reserve will buy up these securities.
"The periods after QE1 and QE2 when Chairman Bernanke applied the brakes ... produced 10 to 15% declines in the stock market. He doesn`t want to make that same mistake again," said Gross.
Since there is no Fed meeting in May and Operation Twist expires in June, the Fed`s next meeting in April will be "the logical time for strong hints" on whether QE3 is imminent, Gross added.