The Emerging Issue of QE2 Expiration

This is a short but effective article that communicates concern over several world events and the lack of movement in stock prices in response to the uncertainty.

Vigna, Paul, 2011. It's easy to keep drinking when the fed's buying. DowJones Market Talk, Mar. 22.

The author attributes the lack of concern to Quantitative Easing 2 (QE2), the program by the Fed to purchase government bonds thus injecting large sums of money into the US economy. Of course so many bondholders are from foreign countries that there is perhaps some leakage in the simulative effect of the program.

The main issue; what happens to stock prices when QE2 stops in Jun.?

I would like to see more articles in the business press on this topic. My guess is that there will be down ward pressure on stock prices.

I agree with the author that no one yet knows the full effect of the Japanese earthquake and tsunami. It will take several more weeks to play out.