The Japanese earthquake is going to spawn QE3 in the US…That’s what the talking heads on CNBC are saying.
How they connect those two dots, I have no idea…What a load of nonsense.
If anything, the disaster in Japan will boost US industrial output.
Japanese supply chains are likely to be messed up for a few months which should advantage US an non-Japanese auto manufacturers, Japan will need tons of heavy construction equipment (hello, Caterpillar!), oil prices may ease helping sooth fears of consumer consumption declines…
I see it as a net US plus…
Not necessarily a USD/JPY plus, but nothing to cause the Fed to stay any easier than they otherwise would have been…