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Verbal Deflation: FOMC Statement Has Fewest Words In Over A Year

The Fed's implicit tightening and simplification of monetary policy was not apparent merely in the message conveyed by the FOMC moments ago: it was also clearly visible in the grammar of the statement itself, and specifically in the word count. Because after hitting a record 895 words last month, the October statement tumbled in complexity and its message to just 707 words: this is also the fewest words the Fed used to explain its actions in over a year, or since July of 2013.



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Hilsenrath Warns: Fed's "Vote Of Confidence In US Economy" Means Mid-2015 Rate Hike Possibility

Pointing to “solid job gains” and a falling unemployment rate, the Fed said a range of labor market indicators suggest that labor market slack is “gradually diminishing.” In the process it struck from the statement an earlier assessment that labor market slack was substantial, a phrase investors have been watching closely for signs the Fed is becoming more confident about the economy. If all goes as they plan, officials will turn their attention in the months ahead to discussions about when to start raising short-term interest rates and how to signal those moves to the public before they happen. Many expect to move on rates by the middle of 2015.



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FOMC Ends The QE Dream, Keeps "Considerable" Period Hopes Alive - Full Statement Redline

"Steady as she goes" was expected... having kept the "considerable time" dream alive last month, the FOMC ended QE3 on schedule but remained 'data-dependent' on reviving it... (even as Kocherlakota dissented)

  • *FED ENDS THIRD ROUND OF QUANTITATIVE EASING AS PLANNED
  • *FED SEES `SOLID JOB GAINS' WITH LOWER UNEMPLOYMENT
  • *FED REPEATS RATES TO STAY LOW FOR `CONSIDERABLE TIME'

And so now the "flow" has stopped; given that "bond buying" did not work, we are reminded of Alan Greenspan's warning that  "I don’t think it’s possible" for the Fed to end its easy-money policies in a trouble-free manner. Full redline below.



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As Fed Pauses Printing, Total World Debt Tops $100 Trillion

If, as Lacy Hunt explains "debt is an increase in current spending in lieu of future spending," then we have some 'un-spending' to do...



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Bond Buyers Spooked By Imminent FOMC, Lead To Tailing 5 Year Auction, Lowest Bid To Cover Since July 2009

A Treasury auction an hour before the Fed is set to announce the end of the latest (if not last) iteration of QE may not have seemed like the best idea, and sure enough moments ago the Treasury sold $35 billion in 5 Year paper in what can be described as a miserable auction, when the 1.567% high yield tailed by 1.5 bps to the 1.552% When Issued. Not only that but the Bid to Cover tumbled from 2.56 to just 2.36: this was the lowest BTC since July 2009 when it actually had a 1-handle. Finally, the less exciting internals showed that Directs were largely in line with recent auctions, taking down 10.5% of the auction, above the TTM average of 13.5%, as Indirects bought just less than half or 47.8%, leaving Dealers with 41.7%  of the final allotment, slightly above the 39.3% 12 month average.



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Pentagon Approves Mandatory 21-Day Quarantine Of US Troops Returning From Ebola Missions

As President Obama explained yesterday, "it's different this time" for the military. And sure enough, while non-symptomatic civilians can come and go around the world in the hopes that they do not become symptomatic following potential contact with Ebola patients, Chuch Hagel has ordered a 21-day mandatory quarantine for all US troops returning from West Africa. The use of the 'q' word is clearly against White House protocols and so The Pentagon refers to it as "controlled monitoring" but, as AFP reports, Hagel calls it a "prudent" measure to prevent the spread of the deadly disease - which just this morning the WHO said had topped 13,000 cases worldwide.



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A Day After Tim Cook's Veiled Threats, ApplePay Alternative Gets Hacked

Just yesterday Apple's executives went on the offensive against retailers that refused to play by the Cupertino company's rules with veiled threats. So it is ironic at best that today, Wal-Mart's alternate-to-ApplePay mobile payment system - CurrentC - has been hacked. The company explains "within the last 36 hours, we learned unauthorized third parties obtained email addresses of some" of their clients...and "no other information."



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Goldman Expects "Steady As She Goes" FOMC With QE Ending On Schedule

Of the last 150 years of developed market monetary policy, we suspect nothing will prepare market participants or Fed members for the twisted terms and double-speak the FOMC will try to unleash today as they attempt to 'end' the most extreme policy measures ever. Goldman Sachs' 'base-case' for today's FOMC is a "steady as she goes" message with few substantive changes in language and asset purchases ending on schedule... but Goldman warns, recent macro and market action might bias the Fed dovish.



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Why Every Banker On Wall Street Suddenly Wants To Be Jefferies' Managing Director Sage Kelly

Because, allegedly, according to a divorce complaint filed by his admittedly "cocaine-snorting" estranged wife and mother of two, former UBS healthcare banker poached by Jefferies in 2009, Sage Kelly (henceforth known as the "defendant") is quite an entertaining, all around swell guy who singlehandedly would have boosted Spain's GDP by several basis points. Here are the details from her recently filed affidavit.



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Mortgage Purchase Applications Plunge To 19-Year Lows

Presented with little comment.. because realistically what is there to say about a so-called 'housing recovery' when the volume of applications for home purchases is the lowest since August 1995. Keep believing that lower rates will support home prices... keep believing the Fed's QE worked... or face facts, this is not your mother's housing market any more...



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US Dollar Tumbles Ahead Of FOMC

Whether it is European banks (Greece and Italy) plunging again, lower-than-expected crude inventories, or expectations of an uber dovish Fed this afternoon, the US Dollar has suddenly gone bidless against the major currencies.



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Good Riddance To QE - It Was Just Plain Financial Fraud

QE has finally come to an end, but public comprehension of the immense fraud it embodied has not even started. In stopping QE after a massive spree of monetization, the Fed is actually taking a tiny step toward liberating the interest rate and re-establishing honest finance. But don’t bother to inform our monetary politburo. As soon as the current massive financial bubble begins to burst, it will doubtless invent some new excuse to resume central bank balance sheet expansion and therefore fraudulent finance. But this time may be different. Perhaps even the central banks have reached the limits of credibility - that is, their own equivalent of peak debt.



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Rosneft "Radical" Sanctions Retaliation Proposal Sends Russian Bonds, Currency Plunging

10Y Russian bond yields have broken above 10%, trading at the highest yields since 2009 as the Ruble plunges once again to fresh record lows against the dollar. These significant moves come on the heels of two notable headlines overnight. First, German exports to Russia slumped 26.3% YoY in August (down a stunning 16.6% year-to-date with vehicle exports plunging 27.7%) as sanctions batter bilateral trade. Secondly, Rosneft has proposed what is being described as "radical" reactions to the West's sanctions, which the Kremlin has (for now) denied.



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Oil Residue The Size Of Rhode Island Covers Gulf Of Mexico Seafloor In Macondo Well Disaster Aftermath

Ever since the April 2010 disaster on the BP-operated Macondo well in the Gulf of Mexico, there was one big outstanding question: where did the bulk of the oil gol? Now, thanks to a research team led by David Valentine, a microbial geochemist at the University of California, Santa Barbara, sampled more than 534 locations near the spill site, gathering more than 3,000 individual samples, we know the answer: the oil spill - some 10 million gallons of coagulated oil - left an oily "bathub ring" on the sea floor of the Gulf of Mexico, about 25 miles from the well, that's about the size of Rhode Island.



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