Investors have been all but ignoring a fairly miserable earnings season as hopes proliferate that it's only a blip on the profit radar.» Read More
QE2 sounds like something out of a Star Wars movie. One of my kids who overheard me talking about QE2 thought it was C3PO's brother. When I tried to tell him it was quantitative easing, that was all a six year old had to hear. His eyes glazed, and it was like I was talking Ewok.
Too bad QE2 wasn't a guarantee that the force of the Jedi would be behind it and save the day. This is what economists and CEOs are debating as the important two day Fed meeting approaches. The economy, while still sluggish, looks "less bad" than it did a year ago. But with interest rates already near zero, just how much oomph can this additional quantitative easing have on the economy? ??
In the first quantitative easing, the Fed purchased some of the bad assets from the banks. But this time the Fed is tackling a different set of economic problems. It's not just bad paper. It's the overall economy that's in need of a serious jolt.
Hedge funds have seen the worst start to the year since the financial crisis, as returns in January and March were both in the red.
The Fed indicated to Citi that it would get more time to fix "stress test" planning problems before rejecting its capital plan.
Goldman Sachs reported quarterly earnings and revenue that topped analysts' expectations on Thursday.