Amid talks of a financial stimulus and what will be announced after the meeting at Jackson Hole, the markets have seemed to pick up somewhat only to stop and pause for answers. What is happening? What sort of stimulus is in store? If Qe2 was not very effective, what can be expected this time?
Mario Dragi of the ECB is not going to attend, due to a full intray at home and ongoing developments with the Eurozone.
I guess some reassuring statement will once again be the order of the day, that if things so neccessitate, then a stimulus will be considered by the Federal Reserve.
As the economic indicators in the States seem pretty healthy, suggesting a moderate growth which is likely to strengthen into 2013, perhaps some stimulus in the shape of residential and commercial portfolio consolidation by the government agencies and then more cheaper jumbo loans for hard-working and deserving families to share in the country's wealth, may prove most effective. That is my suggestion. More jobs, and side by side easier loans to buy houses and cars. A common-sense formula for growth, which would see all sectors pick up.
I looked at the figures published by the Brookings Institution this morning. It seems like a very steady Recovery for the U.S. The Case-Schiller Index and the auto and transportation sector figures auger well for the next 9-12 months, a continuation of Recovery.
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