This is a quarter you’re going to hear about Quantitative Easing.
I hate it.
It’s my belief the increased money supply will stay on the books of the banking industry to offset any potential commercial real estate downgrades they’ll be making in the future.
From the banks’ point of view, it makes perfect sense. For you and me, not so good.
How did QE work in Japan and the UK? Not well at all.
This week’s diatribe is about off-balance sheet accounting and alternative financing.
I’ve been approached multiple times in the past month or two about investment opportunities funding some activity outside of the normal funding channels (banks or equity financing).
This leads me to wonder how much lending is happening in our economy this way and if it’s under the radar. I don’t like the sound of it.
If you look back at my 3rd Quarter Preview (here) I mentioned I forecast the 3rd quarter would be up. That’s proving to be a great move (if I do say so myself).
But what makes me nervous?
This article sums up a lot of my feelings.
Does that mean I’m bearish for the 4th Quarter?
I guess you’ll have to wait until my 4th Quarter preview in a couple of weeks to find out.