QE2

A number of elections will not be decided until sometime later today, if not much later.  The most significant in my part of the world would be the Minnesota Govenor's race.  It looks as if the Republicans will seize both houses of the State Legislature for the first time since 1972. 

If they gain the executive mansion as well, the road will be paved for whatever program they come up with to deal with the state's budget shorfall.  Personally, I would prefer a real solution that is negotiated by both the parties, if that is possible.  Either way, much drama awaits in the months to come.

There is a lot of other news.  The Federal Reserve will announce more details about QE2.  That announcement should come out around 11am CDT.  Every aspect of the financial system is waiting for this announcement and will respond.  How?  Unknown.  There are some noises being made, however:

Libyia believes decline of dollar and food prices warrent $100 oil.
QE2 risks a currency war and the end of the reserve currency status for the dollar.
Will China use QE2 to sell our debt back to us?
Copper prices on the rise due to QE2.

and the list goes on...