I am not surprised that the Fed has embarked on QE3, especially given the complete failure of America to create new jobs for the future -- that failure has the potential to overthrow the USA as we know her, something that economists simply cannot comprehend -- said another way, QE3 is required to avert the overthrow of the USA by fascists and socialists -- the same is true in Europe, so I expect to see the ECB announcing monetary expansions as well -- politics always wins over economics -- always.
US First-Class Postage Stamp (1998)
The jobs that America will create will be low paying -- while the number of jobs will increase, real working wages will continue to stagnate at late 1960's levels through the remainder of the century.
The good news is that those who have been buying up cheap equities will see their fortunes rise in the short-run -- assuming that the amount of QE3 required to restore employment growth exceeds a trillion dollars, at least some of that money will find its way into equities.
Watch for cries for capital flight legislation (in one or more of its sinister forms) to appear in the headlines by early 2013 -- also, keep an eye on oil prices, and to some extent gas prices -- finally, watch for global skill poachers to appear in the US seeking to hire professional atheletes, moviestars, skilled surgeons, top scientists, and skilled engineers to work in Asia and elsewhere, either in person or remotely.
We should also keep an eye on the Chinese who are likely to begin buying up equities in the US with abandon, including equity positions in America's prized corporations such as Apple, Cisco, and Intel -- stock prices will surge in the short-term.
Accredited investors stand to win big -- world-class skills will likely earn even higher premium wages in the coming year -- everyone else should remain under cover.