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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