Wednesday, October 8, 2014

The Next step after Quantitative Easing is Verbal Easing

For years the Federal Reserve has use Quantitative Easing (QE) as a way to push investors into riskier investments. Now though QE time is coming to an end. The next step is Verbal Easing (VE). What this is, is just reassuring the public that everything is going to be ok. Even now the market looks shaky and the Dow is showing the stress. It fell 270 points on Tuesday October 7 2014. At any given time when change is about to happen the market starts to wobble.

This is very interesting concept. To think that if only the Fed justified its action the market might not be so shaky. The VE is the next step that needs to be taken to insure that we have come back from the Recession of 2008.


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