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Mullooly Asset Management Podcast September 19, 2012 Mullooly Asset Management, LLC September 2012

Quantitative Easing (QE3) Announced Mullooly Asset Management

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Page 1: Quantitative Easing (QE3) Announced Mullooly Asset Management

Mullooly Asset Management PodcastSeptember 19, 2012

Mullooly Asset Management, LLC September 2012

Page 2: Quantitative Easing (QE3) Announced Mullooly Asset Management

The Federal ReserveNot a part of the federal governmentSmooth out boom and bust economic cyclesPromote stable prices (control inflation),

promote maximum (sustainable) economic output, and promote maximum employment

Mullooly Asset Management, LLC September 2012

Page 3: Quantitative Easing (QE3) Announced Mullooly Asset Management

What is Quantitative Easing 3?Rates are at zero already, can’t be lowered

anymoreManufacture a rate cut by buying bonds on

the open market Gives money to the banks and government

takes bonds“Hope” that banks make more loans

Mullooly Asset Management, LLC September 2012

Page 4: Quantitative Easing (QE3) Announced Mullooly Asset Management

Past IssuesFed insists that banks raise reserve

requirementBanks are -- just now -- meeting those

requirements

Mullooly Asset Management, LLC September 2012

Page 5: Quantitative Easing (QE3) Announced Mullooly Asset Management

Why QE3 is DifferentTime frames existed in past quantitative

easings QE3 will continue until unemployment is

under 7%Interest rates will remain low for a long timeHopefully spurs economic activity

Mullooly Asset Management, LLC September 2012

Page 6: Quantitative Easing (QE3) Announced Mullooly Asset Management

None of the securities mentioned are considered investment advice. If you’re relying on a podcast for investment advice, I want to tell you, you’re making a huge mistake. We strongly urge our listeners to consult with their investment advisor before they make a decision to buy or sell any investment.

Mullooly Asset Management, LLC September 2012

Page 7: Quantitative Easing (QE3) Announced Mullooly Asset Management

Mullooly Asset Management, LLCEmail: support (at) mullooly (dot) netPhone:     877-223-7300  toll-free

732-223-9000  local 732-223-9600  faxWebsite: http://www.mullooly.net

Mullooly Asset Management, LLC September 2012