QE 3 is not the name of an ocean liner. It means "quantitative easing" and this is the third time the Federal Reserve Bank has done it. Simply put that means the Fed is printing money to buy government bonds which have been downgraded by rating companies. This time the Fed is pumping 40 billion dollars a month into Treasury's bank account.
A simple analogy would be a family that gets into serious debt by overspending on a credit card and can't make the minimum payment. They use another credit card that hasn't yet found out they're deadbeats and they pay the minimum payment on the original card. If they get away with it, they do it a third time to make the minimum payment on the second card.
The stock market and big investment banks love the QE maneuvers and "Operation Twist" which pumped funny money into the banking and brokerage systems to keep them lucrative. The current scandal on insider trading is just the tip of the iceberg. I predict a day of reckoning is coming after the election in November. Better hunker down.
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