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Monetary Policy from Hell

Friday's first round of QE2 (quantitative easing) was not well received by the markets. The Fed bought $7.22 billion of bonds, as the first installment of its $600 billion target over the next 6 months. Stocks reacted by falling 2% for the week, bonds lost 2.2%, commodities fell 3%, and gold was down 2%, while silver dropped 2.6%.

Monetary Policy from Hell

 

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