It’s too soon to completely underestimate and understand the impact of something like this [Libya, Japan]. World growth is struggling, given the debt overhang, given the unemployment situation, given the excess capacity and all the problems in the world economy, even a small shock is enough to cause a default back to earth.
QE3? Range of views:
# No time soon. Baby boomers need to have this market rise, at all costs, in order to retire. Once they see that without his help the thing comes down, they will accept the poison.
Again, few pundits are dealing with the concept of “malice” in the market, only with incompetence.
# Has anyone tried to guesstimate how long the government can survive without QE3? One month, two months, maybe three??
What’s waiting in the wings? SDRs. Is anyone seriously not factoring that in? What follows SDRs?