Thursday, November 18, 2010

QE2: 3 signs to watch for progress

A $600 billion investment in our economy might be the fix that this situation requires. Yet, the possibilities of higher employment, stock surges, and greater investment are coupled with inflation, potential market bubbles, and large fluctuations in the trade market. How can we tell that it's working?
Watch out for rising business investments. So far, lower interest rates have not particularly stimulating, but there is still plenty of time. What matters is how much of the new money is snatched by small business owners.
Also, look for any increase in new home investments and refinancing.
Lastly, rising stock prices are great, but most individuals are not investors, so this would come to only make the rich richer.
Only time will tell..

1 comment:

  1. These are all very good indicators, and it seems like the economy has been progressing very slowly. My oppinon is that the housing market will really be the biggest indicator in terms of how the economy is doing. It seems many sectors are on the rise, except for the housing market. I do think though that increase in investment and increase in business investment will help stimulate the housing market.

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