Thursday, October 28, 2010
Fed's QE2 survey like Santa Claus checking holiday wish lists; maybe open Factory Outlet stores but first the "F" word
Ann Taylor is going to open 40 new factory outlet stores, maybe the Fed, in quest of new channels of distribution of "securities" can take some space in those new outlets?
NEW Alternatives to any QE 2, 3, 4:
Correction - instead of buying US Dollar based securities like US Treasuries, Agencies
instead buy Euro-dollars, foreign currency (single or baskets thereof), SDR's. And this - in GOLD and other "precious metals" including the nascent REM's (the 17 Rare earth minerals). Since the Fed is already committed to uncharted territory seeking as they should to diversify hoping to both lower risk and costs, but there looms more to consider.
Was the "F" word in the Fed's Survey?
Back to the Fed's "survey," of the 18 Primary Dealers; did the Fed ask about the effect of the "F" word? Fiduciary duty owed to customers? Note Fiduciary duty, unlike suitability requires both Before and After ongoing due diligence, recommending a security to a customer-why? To determine that same is in the BEST interests of the customer.
Not with standing the recent passed Dodd- Frank, fiduciary duty may apply already depending on the unique facts and circumstances of each customer's relationship with the 18.
Wonder if or will the 18 need to look into their respective COLLECTIVE knowledge base' for the answers?