QE-2 is here and begins tomorrow. The Federal Reserve Bank will begin their $600 billion quantitative easing operation tomorrow. The Federal Reserve announced that they would do a $105 billion operation(U.S. Treasury purchasing) over the next month and average around $100 billion a month going forward. Many other nations such a Germany, China, Japan, and Brazil, have openly stated that they are against this action by the central bank, however, Ben Bernanke says he knows better and will go ahead with the plan anyway.

Many traders and investors are expecting the stock markets to rally higher during the dates that the Federal Reserve Banks will buy the bonds. Therefore, today’s stock rally off of the morning lows could be viewed as investor or institutional front running ahead of tomorrow’s massive POMO(Permanent Open Market Operation).


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