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Conspiracy: Jobless Equals QE3



May 05, 2011 – Comments (4)

The markets are wild today on the back of comments from the ECB and Jobless Claims that shot higher to 474,000.  The SPDR S&P 500 ETF (NYSE:SPY), SPDR Dow Jones Industrial Average ETF (NYSE:DIA) are trading lower while the PowerShares QQQ Trust, Series 1 (NASDAQ:QQQ) are higher.

The Jobless Claims numbers have skyrocketed over the last month. Just a month ago, people filing for unemployment sat below 400,000. Last week, the number of filings jumped to 431,000 and this week to a staggering 474,000. This massive jump in Jobless Claims has many wondering if it is another ploy by the Federal Reserve and government to enact a controversial QE3.

In June, QE2 is supposed to come to a close as the $600 billion will have been used up. It is obvious, this infusion of money has done little to fix the massive housing problem or even truly curb the unemployment number. On the negative side, food and energy prices are killing the average American. If you take away the drug (free money), the junkie will freak out. Even Ben Bernanke must see this. Therefore, is it plausible to think that a sudden spike in Jobless Claims may give the Federal Reserve the ammo to push out QE3? It is hard to imagine this spike in Jobless Claims being a mere coincidence just one month prior to the end of QE2.

Gareth Soloway

4 Comments – Post Your Own

#1) On May 05, 2011 at 1:44 PM, leohaas (30.08) wrote:

Are you for real? Now you are claiming that the BLS purposely increases the unemployment numbers, just so the FED has a reason for QE3? Have you any idea how sick that suggestion is?

What is the next conspiracy? Osama is not really dead? Obama was born in Kenya? We never landed on the moon? Aliens killed JFK?

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#2) On May 05, 2011 at 2:08 PM, buffalonate (44.13) wrote:

ADP just reported we gained 179,000 jobs in the month of March.  There may be a lot of people getting canned but there are a lot more being hired.  With oil dropping back down today gas prices should come back down which will give the economy a shot in the arm.  I am in the Buffett camp which believes we will see slow steady growth as long as oil is above $90.

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#3) On May 05, 2011 at 2:17 PM, JTShideler (50.15) wrote:

The BLS already hides the true unemployment numbers by not counting people that have become so depressed they gave up looking or people that are under employed.  I am convinced that the Fed has to do QE3 if only because the Fed is increasingly becoming the only buyer for U.S Treasuries.  Conspiracy?  I think NOT, but only because its its almost so blatant now that they don't try to hide it. 

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#4) On May 05, 2011 at 4:59 PM, mtf00l (43.07) wrote:

"God grant me the serenity
to accept the things I cannot change;
courage to change the things I can;
and wisdom to know the difference."

Not the original however, an awesome modification... =D

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