Why QE2 is unnecessary

ON NORTH AMERICA

PSigma's James Abate on why he does not believe the US needs another round of QE.

The recent upturn in M&A and IPOs in the US are signs confidence is improving. This reinforces data that shows recovery is moving into fuller bloom. The subjects of late for US investors have been the Congressional elections and QE2. The Republicans were able to wrest control of the Congress from Democrats that, in turn, should lead to a better business-oriented environment for investors but one that was expected largely. Concerning QE2, we remain befuddled by its purpose as long-term interest rates are stimulative already and fell further in anticipation of the formal announcement; t...