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The WeeklySnapshot 11/07

Risk-Off Day In The Markets As of 2:34 EST, the S&P 500 is down -2.11%, and Average Volume at Time (AVAT) using a 30-day period was higher by +31.77%. The 10yr Treasury dropped -12.7bps to 1.623%. AVAT is the percentage…

QE3 – Not with MY Money

Let’s not get me started on the merits (or lack thereof) of Monetary Easing.

We need real fiscal solutions to help us get back on our feet, not an artificial increase in demand for Treasuries. If QE3/Twist3 take place – how will this benefit average Americans when borrowing costs have remained at historic lows? To get the world’s largest economy growing again we have to fix real structural problems, like the fiscal-cliff we are staring down at the end of this year. We have to create jobs and the housing market has to rebound before we can get consumers to spend the amount of money necessary for a recovery.

What could can more easing possibly accomplish?!

Thursday is the FOMC meeting. If we get more easing (and enough of it) markets will move artificially higher. If we don’t, the bottom will fall out and we’ll retrace the majority of our last bull move up to a four-year high on the S&P 500. I wish I knew what Bernanke’s plan was…

In addition to the FOMC meeting, we have German court rulings out tomorrow that could change the course of the euro-crisis. If they decide Germany will not support the ESM (Europe’s permenant bailout fund), we are in for some serious volatility.

These are some trying times for asset managers. Where do you find yield in this interest rate environment without taking too much risk? Seriously, I’m asking – where is it?!

Why The ECB’s Bond-Buying Program May Fail to Contain The Debt Crisis

The unlimited bond-buying program announced yesterday by ECB President Mario Draghi may fail in its efforts to contain the debt crisis and may call bank’s credibility into question, according to Bloomberg analyst TJ Marta. The intention of the program is to lower borrowing costs for nations that are at risk, as Draghi said the program will enable the ECB to “address severe distortions in government bond markets,” which results from “unfounded fears on the part of investors of the reversibility of the euro.”