QE3, 100 Percent Chance if needed
That is what the market believes even though all the pundits say otherwise. QE2 showed that Bernanke believes the only way to to save the economy is through inflation. Ironically there are only a few people in Washington who will take him on and they are the Pauls and the Tea Partiers. All the other players starting with Geithner are ok with it.
We have a problem in Washington. It is all about big money and lobbyists. Obama has started his billion dollar drive for 2012 from a plush new office overlooking Grant Park in Chicago. Does he remember that his base would want to have the office be in the old warehouses on the south side of Chicago?