Disappointing job data drove everything today. 8.2% unemployment rate and only 69k new jobs added in the month of May, this is not what America expected heading into the first day of June. Next step for the Fed is unclear, but the correction in the market brings QE3 back on the table. Fed needs a big drop like today’s to reconsider it. However, in my humble opinion, I don’t think QE3 will help much. The effect of quantitative easing is less and less; you already saw QE2 was a lot less effective than QE1 and I expect QE3 to follow the trend. With all due respect to the Fed, I think we could put out all these temporary feel good measures, but eventually we will have to pay for everything, the dollar will have to pay for everything. We can print more money, and we’ll have to live with the consequence.
