Tyler Durden
Zero Hedge
Oct 29, 2010
Yesterday we made a big stink over the Fed’s reverse inquiry into the PD community over how much QE2 it should launch. Today, we find out what the distribution is: as Merrill’s Harley Bassman points out: “Four dealers are predicting a $1+ Trillion buy program.” It is good to finally know what the bogey is.
From Harley Bassman’s note, just distributed to clients:
I was feeling just fine about the world today…..until I was handed a survey of dealer opinions about next week’s QE2 event (aka the FOMC meeting).
Four dealers are predicting a $1+ Trillion buy program with a smattering of $900bn and $600bn votes tossed in. This would not have bothered me too much if not for the revelation today that the FED was asking dealer opinions.
This reminds me of how I tell my kids that our family is a democracy: They each have one vote…….and I have five !!! Why is the FED asking ??
They are supposed to already have the answer.
The result:
std px Nvol breakeven Terminal Breakeven Sep 28 Low
FVZ 1-00 97nv +/- 23