I would like to touch base before the night is out on Goldman's latest GDP forecast yada yada. What it very interesting are these two paragraphs:
"We believe Bernanke’s Jackson Hole speech will include a detailed discussion of the potential for more easing through large-scale asset purchases. A variety of indicators suggest many investors already expect more QE. For instance, a recent CNBC survey shows that more than $300bn of purchases may already be priced in. The sharp decline in forward real rates is also partly related to QE expectations, in our view (Exhibit 2).5 Based on our conversations with clients, we believe investors would be very surprised if the speech did not include a discussion of asset purchases...
While listing the easing options looks probable, Bernanke is very unlikely to pre-commit to taking action next week. This is a monetary policy decision, and any announcement would come at an FOMC meeting. In addition, core inflation continues to accelerate, and Fed officials seem to have a rosier outlook than our forecast or the consensus. While we expect additional QE and the odds are rising at the margin, it is not yet a done deal."
I'm laughing my ass off over here because the market just got TUNED in the last 2 weeks, and QE3 or 300 bill may already be priced in? LOL.
This is my interpretation (As Goldman):
Ben isnt going to say shit. We will buy the market 20% lower, and then Ben will be forced to print, and then us Goldman's make a shit ton on the rally into the Abyss. Then after we have raped and pillaged the entire USA, we will move our rapege to China, as the Indians are way too stinky to fuck with.