Fed Decision: Will Reinvest MBS, QE 1.999 Is Here As $250 Billion More In Debt Monetizations On Deck

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Tue, 08/10/2010 - 14:20 | 513030 John McCloy
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   Well now we can all stop wondering. Wonder if it will be sell the news now that we have clarity. Looks to me like Bears have been on the sidelines simply waiting for a decision.

Tue, 08/10/2010 - 14:27 | 513063 johngaltfla
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As I said in the other thread:


The 2/10 yield curve would flatten.


Da bitch has flattened like Senator Robert Byrd's EKG.


Now we're going to see compression in the markets where the 2 sticks around 0.50% and the 10 dives down to test 2.25-2.5% yield levels.

Tue, 08/10/2010 - 14:28 | 513082 equity_momo
equity_momo's picture

Fed just jumped the shark. All credibility gone. Gold blue sky this month. >1500 by year end. And im not even a gold bug , im just stating how this is going to go down. JPM are going to have to short the output of South Africa and China combined to keep a lid on this.

Tue, 08/10/2010 - 14:20 | 513031 LeBalance
LeBalance's picture

Become flexible.

Grab ass.

Kiss it, Goodbye.

(but we knew that along time ago).

Tue, 08/10/2010 - 14:29 | 513078 NotApplicable
NotApplicable's picture

It's too late to become flexible.

Question is, can one remain flexible?

Semper Gumbious

Tue, 08/10/2010 - 14:31 | 513089 Rusty_Shackleford
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It took me a second, but that was funny.  Thanks.

Tue, 08/10/2010 - 14:40 | 513137 DoChenRollingBearing
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Agree with Rusty 100%.  Truly funny.  Great minds here at ZH.

Buy gold!

Take $500 (or local currency) from the ATM Thursday!  "Let's Deflate the Bitchez!"

Wed, 08/11/2010 - 02:51 | 514666 MonkeyMan
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Black Friday to follow - the 13th will be unlucky for some. I call crash.

Tue, 08/10/2010 - 15:23 | 513324 -Michelle-
-Michelle-'s picture

Too funny.  That's the second time I've seen that today and on two wildly different forums.

Tue, 08/10/2010 - 14:33 | 513108 Eternal Student
Eternal Student's picture

Thanks for that crappy advice, LeBalance. I tried it and got slapped.

Tue, 08/10/2010 - 14:41 | 513134 LeBalance
LeBalance's picture


Thanks for the reply.

Tue, 08/10/2010 - 15:22 | 513314 rapunzel
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grab ass kiss it
whoooosh hee-ha

Tue, 08/10/2010 - 15:33 | 513333 rapunzel
rapunzel's picture

safari atnt suck

Tue, 08/10/2010 - 14:20 | 513032 oklaboy
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what a croc of chit

Tue, 08/10/2010 - 14:21 | 513033 LePetomane
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Moving day!

Tue, 08/10/2010 - 14:22 | 513034 Andy_Jackson_Jihad
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S&P up 5+ points in seconds based on a bad economic outlook.

Tue, 08/10/2010 - 14:29 | 513085 assumptionblindness
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Any news that borrowing costs (bonds) are going to remain low is beneficial to the S&P companies who are waist-deep (and soon to be neck-deep) in debt.

Tue, 08/10/2010 - 14:22 | 513036 SheepDog-One
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'SWOOOOSH'!! Trademark that quick! Oh wait...

Tue, 08/10/2010 - 14:22 | 513037 FASB 666
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Hoenig was that 4th dentist who just never believed in flouride

Tue, 08/10/2010 - 14:25 | 513050 Anonymouse
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I think the quote you are looking for is "4 out of 5 dentists surveyed recommended sugarless gum for their patients who chew gum".  I think that would make Hoenig (in your analogy) dentist #5 (who apparently recommended taffy).  I don't think the analogy holds.  It's Bernanke giving out the candy.  Consequences be damned

Tue, 08/10/2010 - 15:16 | 513292 CrockettAlmanac.com
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Who wants gum?

I do! I do!


Tue, 08/10/2010 - 14:36 | 513039 GoinFawr
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Machoman: I respectfully disagree.

And special thanks to ZH for being so quick on the draw with these bulletins <removes hat>


Tue, 08/10/2010 - 14:22 | 513040 Anonymouse
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Bernanke to China:  Screw you.  We'll buy our own bonds.

Tue, 08/10/2010 - 14:33 | 513100 assumptionblindness
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China to Bernanke:  Since you are buying treasury bonds, how about buying some of the ones that we are selling.  XOXO

Tue, 08/10/2010 - 14:41 | 513133 GoinFawr
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China to China: Hell, let's take a lesson from the US and buy our own bonds


Tue, 08/10/2010 - 14:41 | 513142 LeBalance
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for just a leetle while.

Tue, 08/10/2010 - 15:39 | 513371 SteveNYC
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I mean, let's really think about this:

1) Government is financed via a "bank" that prints it little pieces of paper (or digits) that it can use to "pay" for its shit. Government issues IOU's to said "bank"

2) Millions all over the world get their asses out of bed every day to slave for said paper/digits. In this case, the slaves trade labor for said "paper" that said "bank" prints and gives to said Government

3) What happens when said slaves become aware of said scam?

Tue, 08/10/2010 - 15:45 | 513390 Geoff-UK
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4)  Guillotines appear.  Federal Reserve employees surreptitiously burn their IDs in fireplace and bury the ashes.  Tell neighbors they worked for Federal Employee Credit Union.

Tue, 08/10/2010 - 23:56 | 514490 StychoKiller
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It will probably get to the point where anyone with a "Federal" employer is gonna be watched VERY closely!

Tue, 08/10/2010 - 15:02 | 513249 DaveyJones
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) Chinese General Says U.S. Provocation Risks Economic Response

"Aug. 10 (Bloomberg) -- A Chinese general said U.S. plans to send a nuclear-powered aircraft carrier to the Yellow Sea may lead to retaliation from China, the biggest foreign holder of Treasuries.

"Imagine what the consequence will be if China’s biggest debtor nation challenges its creditor nation," Major General Luo Yuan, deputy secretary general of the People’s Liberation Army Academy of Military Sciences, wrote in an editorial today in the state-controlled English-language Global Times

Tue, 08/10/2010 - 23:57 | 514493 StychoKiller
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China to US: "Put that big D!ck in your pants, no one wants to see it!"

Tue, 08/10/2010 - 14:22 | 513041 greased up deaf guy
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dow to infinity... AND BEYOND!!!  (facepalms all around)

Tue, 08/10/2010 - 14:24 | 513042 etrader
etrader's picture

Its  Havenstein all over again.

Tue, 08/10/2010 - 14:44 | 513153 LeBalance
LeBalance's picture

Havenstein was kindergarten compared to this baby.

In the circles of gov-owned eCONomists, they do try to one up the big boy on the block.

Gets them a belt knotch at the Bohemian Grove.

Tue, 08/10/2010 - 14:57 | 513222 Sancho Ponzi
Tue, 08/10/2010 - 14:24 | 513043 flacon
flacon's picture

> "and will employ its policy tools as necessary to promote economic recovery and price stability."




The Federal Reserve is like a numbing agent, so that when you burn you hand you don't feel the pain -- until it's too late. 

Tue, 08/10/2010 - 14:24 | 513044 Sudden Debt
Sudden Debt's picture

market should end green today! ALL HAIL BB!

Tue, 08/10/2010 - 14:23 | 513045 MAGICWIZARD

and Rome burned.....

Tue, 08/10/2010 - 14:23 | 513047 Max Hunter
Max Hunter's picture

Euro Bitchez !

Tue, 08/10/2010 - 14:23 | 513048 nwskii
nwskii's picture

and gold is  turning green

Tue, 08/10/2010 - 14:25 | 513051 Lazarus Long
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whiskey tango foxtrot thank god i don't have children that will be fighting in the next war

Tue, 08/10/2010 - 14:43 | 513157 LeBalance
LeBalance's picture

but you will be.

Tue, 08/10/2010 - 14:46 | 513168 Lazarus Long
Lazarus Long's picture

yes i know and ready for it,this one will actually be justified

Tue, 08/10/2010 - 15:48 | 513395 Geoff-UK
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The war won't be middle class against ruling class/Federal Reserve employees.  That'll come after.

I'm guessing, when Obama has to pick an enemy to distract Americans from their emptied out 401-Ks, Venezuela will get the nod.  They have oil, after all.

Tue, 08/10/2010 - 14:24 | 513053 freshman
freshman's picture

Someone once said: " The Fed will NOT monetize the federal debt". Who was that guy that said it?

Tue, 08/10/2010 - 14:36 | 513114 NotApplicable
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Maybe he meant he won't monetize it with real money, because they are instead using that extra $1.5T in proceeds from earlier auctions to fund the current "demand?"

I might just hit my home refi target rate sooner than expected.

Tue, 08/10/2010 - 14:25 | 513054 curbyourrisk
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ASSHOLES!  Everyone of them.....  EVEN Hoenig.  If he was that adamant about his feelings he would resign his post and officially come out in favor of auditing the FED.

Tue, 08/10/2010 - 14:43 | 513152 DoChenRollingBearing
DoChenRollingBearing's picture


+ a +/- $1200.

Tue, 08/10/2010 - 15:00 | 513235 freshman
freshman's picture

No no no, we need him there and one day make him the Chairman when everyone else resigns.

Tue, 08/10/2010 - 14:26 | 513055 No Mas
No Mas's picture

You know, if one pays heed to the advice produced by ZH, one will lose out on many, many opportunities to make money in the market.

Why do you guys so fight the fed.  It seems everyone here knows the fed is going to inflate asset prices; why doesn't this site play up the earnings potential afforded by this reality?

Do NOT follow this link or you will be banned from the site!