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FOMC Statement: SSDD (And Comparison To November Statement)
Most notable in this relatively unchanged statement is the change in language on housing weakness from one of "housing starts" (as of November 3) to "housing sector" which is substantially broader...
Full FOMC Minutes
Information received since the Federal Open Market Committee met
in November confirms that the economic recovery is continuing, though at
a rate that has been insufficient to bring down unemployment. Household
spending is increasing at a moderate pace, but remains constrained by
high unemployment, modest income growth, lower housing wealth, and tight
credit. Business spending on equipment and software is rising, though
less rapidly than earlier in the year, while investment in
nonresidential structures continues to be weak. Employers remain
reluctant to add to payrolls. The housing sector continues to be
depressed. Longer-term inflation expectations have remained stable, but
measures of underlying inflation have continued to trend downward.
Consistent with its statutory mandate, the Committee seeks to
foster maximum employment and price stability. Currently, the
unemployment rate is elevated, and measures of underlying inflation are
somewhat low, relative to levels that the Committee judges to be
consistent, over the longer run, with its dual mandate. Although the
Committee anticipates a gradual return to higher levels of resource
utilization in a context of price stability, progress toward its
objectives has been disappointingly slow.
To promote a stronger pace of economic recovery and to help
ensure that inflation, over time, is at levels consistent with its
mandate, the Committee decided today to continue expanding its holdings
of securities as announced in November. The Committee will maintain its
existing policy of reinvesting principal payments from its securities
holdings. In addition, the Committee intends to purchase $600 billion of
longer-term Treasury securities by the end of the second quarter of
2011, a pace of about $75 billion per month. The Committee will
regularly review the pace of its securities purchases and the overall
size of the asset-purchase program in light of incoming information and
will adjust the program as needed to best foster maximum employment and
price stability.
The Committee will maintain the target range for the federal
funds rate at 0 to 1/4 percent and continues to anticipate that economic
conditions, including low rates of resource utilization, subdued
inflation trends, and stable inflation expectations, are likely to
warrant exceptionally low levels for the federal funds rate for an
extended period.
The Committee will continue to monitor the economic outlook and
financial developments and will employ its policy tools as necessary to
support the economic recovery and to help ensure that inflation, over
time, is at levels consistent with its mandate.
Voting for the FOMC monetary policy action were: Ben S. Bernanke,
Chairman; William C. Dudley, Vice Chairman; James Bullard; Elizabeth A.
Duke; Sandra Pianalto; Sarah Bloom Raskin; Eric S. Rosengren; Daniel K.
Tarullo; Kevin M. Warsh; and Janet L. Yellen.
Voting against the policy was Thomas M. Hoenig. In light of the
improving economy, Mr. Hoenig was concerned that a continued high level
of monetary accommodation would increase the risks of future economic
and financial imbalances and, over time, would cause an increase in
long-term inflation expectations that could destabilize the economy.
Comparison between November 3 and December 14 FOMC statements:
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Yawn .............
One of these "reports" could serve to be the breaking point for FIAT failure.
Indeed... it will.
The world is asking Blackhawk if he wants to fight. If he continues to say yes he is going to be punched in da moaff.
I predicted a few months back that the end result (at some unknown point in time) would be war. World war. Civil unrest, riots and all that typical stuff nobody seems to think about (you're a doomsdayer if you speak about it!) It's already here. Instability will lead to more problems.
The Chinese will NOT take lightly to this. I promise you that.
Yeah I just hope that there is not enough oil for another world war. And by hope I mean, I do not think there is enough oil for another world war.
You threating full retard? Never go full retard man
http://www.youtube.com/watch?v=svwGRJA28lY&feature=related
Really? China will have no problem with QEII and III? Ok mongo...
In case you are serious, such a prediction was made a little bit before your time. Does "there will be wars and rumors of wars" ring a bell? Care to produce a record in time where there were no wars and civil unrest? I will also go on record and predict that somewhere, sometime in the future, there will be wars and civil unrest. Oh and I'll also predict droughts, floods and famines. I'll even be so bold as to predict colder than normal winters followed by warmer than normal winters. By God, I predict all manner of things will happen!
There. Can I join the ZH genius club now?
The world is asking Blackhawk if he wants to fight. If he continues to say yes he is going to be punched in da moaff.
You can say that again
Looks like I did! Hahaha
The world is asking Blackhawk if he wants to fight. If he continues to say yes he is going to be punched in da moaff.
Snore
http://lhmarketwatch.blogspot.com/2010/12/debunking-federal-government-d...
But The Ben Bernank is 100% sure that he is still full of shit!
decimation of the dollar and the US middle class to continue. does he want to see dead bodies in the streets? i suspect that's around the corner in high gun ownership states.
Only $75 billion/month!?! Those stingy bastards.
Don't forget the $30+ billion a month from QE-lite. Happy times!
Isn't that about twice the pace of initial indications? Weren't they talking about an 10 month time frame for the $600B??
Drop your bids.
Drop you (naked) shorts, Blythe Masters and John Pierpont Morgan!
Anyone else see the 6-dollar candle printing on gold futures? Man, that's a hell of a tail!
Forget the tail! See the Q!
I thought the $600Bln purchases were for mostly short term Tresuries?
Thank God for Hoenig!
why?
Grr. Where's my pst FOMC PM pump, bitches.
zig up, zag dow, zig up...ziggy-zaggy...HFT AI's look a little "uncertain"
Just switched over to CNBC from Bloomberg, why I don't really know.
But, Is Bill Gross dead and just propped up in chair? He looks like a corpse.
You have to play the part of actually caring if you're going to go through the effort of a capitulation/CYA/plausible deniability letter...
but measures of underlying inflation have continued to trend downward."
Bernanke was looking at his zipper when he said that.
I can't even read this with a straight face. How can that mofo look himself in the mirror?
Dual mandate my ass.
I cant read it without a trash can at the ready to hurl in. Blah blah blah...hey BEN how about the $30 billion youve lost since the QE2 bond buying adventure began only weeks ago?
+1
Hey you really want to puke? Tune over to CNBC and hear Blackrock telling (and I'm quoting) "It's all good" This fu$ker must have said it 20 times.
So, just in case anyone still has any doubts, well drink some kool-aid because "it's all good"
Oh, and now comes Cramer! IT'S ALL GOOD!
It's all good..................duuuuuuh....brains!!!!!!!!!!!!
But no comment on the $30 billion Bernank just lost?
So with corporations and banks doing so much better the FED only needs to support the market with 75B a month. Does that sounds like a recovery?
They sucker punched gold this AM in prep for the FOMC release this afternoon, seems they have been doing this lately, always letting the market know who is (might be) in charge.
From here Gold will rework its way past $1420. Wall of worry and all that.
Nice rebound in silver.
The PMs get sucker punched on a lot of every Fed Days.
Its not PM-day after all. </s>
End The Fed. NOW.
"progress toward its objectives has been disappointingly slow"
B b b but ZimBen says he is 100% confident... why are they disappointed? Surely they have a crystal ball and could have forseen all this?
Long gold and short NFLX, bitchez.
Funny how crude oil, gold, silver, etc. are sucker punched each time the Fed Poliburo utters its statement.
Financials, on the other hand, remain unfazed....
pshaw, whatever.....
There you go making a comment about a sector (financials) while cherry-picking one stock. XLF down, REIT's down. So, your comment is not true.
Robo ~
I love massive volume ... I'm up 2% already .....
The move in AIG is almost certainly due the news getting out the last few days that Fairholme funds have accum 26% of AIG. The last several points up are due to the public jumping in. Fairholme is very smart but I'm certain their buying program is finished. Whether they are distributing any stock, I have no idea.
Meanwhile, what is vastly more impt is that JPM was down 1.7%.
FOMC minutes:
We had our coffee and donuts, talked about how pretty it was in Jackson hole. Decided the major banks still needed to be recapitalized so we left rates unchanged. Someone brought up retired people on fixed income, we decided to say F'm. Then Yellen started some shit about all the unemployed and how destroying the dollar won't really help them. So we took a vote, it was decided to F'm.
That's the meeting for this month have a great holiday everybody and oh yeah American people go F yourselves
Locked Hoenig in the bathroom 'cause we're tired of listening to his ass.
...and told him if he keeps it up he will have to pay for his own coffee and donuts next time, instead of billing it to the taxpayer
You must have been there! But you forgot, let's tell Congress they have our full support of a 5% COLA while the SS recipients can get JACK for the next 3 years.
same can be expected even in next fomc....
But, but...who will purchase Best Buy shares at $5,000 each?
Maiden Lane XXXVIII?
Reading one of these is like watching the best of the worst reruns of Beavis and Butthead at 3 in the morning; I find it about as exciting as freebasing LSD laced Red Bull & Vodka jello shooters lightly sprinkled with coke, while snorting Tabasco sauce off some fat guys hair ass as Mistress Fuckoff, sporting 7 inch stilettos, wearing a double d squeezing neoprene shower cap cracking her horse jockey whip across her hand is telling me that I've been a bad,..baaad boy.
But that's just me.
Clark, you need help.
It would be nice to have some "meaningful" activity. This is like bangin' off the walls of a cocktail straw! How about some real volatility?? Anyone remember? Geeze!!
Dullest Fed decision aftermath in history BAR NONE
Interpretation-
We will continue to do what hasn't been working- because it's not really about the economy- it's about keeping the banks solvent, and maintaining the banksters bonuses. Now get back to work, peasants.
QE2 is an epic fail. Bubbles forgot to
mention that.
Yield curve is blowing up. That
should be bullish for stocks.
No kidding. Guess they ignited some bond vigilantes as well as inflation expectations. The hole we have to dig out of just keeps getting deeper.
These people really are clowns.
the recession is over! There is no "hole"
Is this a joke?
I suppose you think they are going to buy the long end for shits and giggles.
At least Zen koans make some sorta sense, you on the other hand...
wow after all these years I finally have meaning behind that joke: I was at a party and everybody was blowing bubbles, then bubbles went home.
Well, everybody on Wall Street and in DC is certainly blowing bubbles!
aaaarrrrrgggggggg!
Bob Dahl is BACK ON CNBC...a double dose today.
He sends his love and message, "Buy stocks." Surprisingly, K. Heebner follows up Bob's message with, "Buy stocks." [but never mind that he dumped AAPL a month ago]
Heebner also cites the pending tax/stimulus legislation as part of our American exceptionalism, representing...wait for it....financial responsibility. I kid you not! This is not a typo.
We are freakin' doomed if the criminal syndicate known as Wall Street continues to be populated by freaks such as these who, apparently, had their moral consciences surgically removed decades ago.
Prepare for drinking heavily...
Did they just announce an additional 600B? It is says in addition to what was announced in Nov, they are buyimg 600B in longer Treasuries..
It looks like Ben's selling, not buying.
Must be his secret plan...more likely
Ben is actually incompetent.
It's poorly written to be sure, but I interpret that as a re-confirmation they're buying longer dated treasuries with the original QE2 amount already sludged...I mean set aside.
If The Bernank lets 30 year t-notes get too marked to any semblance of remote reality, well then...
...you know. We can't have that. Actual market-based prices on bonds would be real bad for The Bernank.
Correct...status quo statement.
The statement contained no statement, really, but the roaches sure scurried off, anyway. And the DOW is still up even though the longest dated Fed debt is currently collapsing in price, and ramping in rates...which as far as I know represents deep crap trouble for us.
Just switched over to CNBC from Bloomberg, why I don't really know.
And here is Cramer, THE Wall Street massa-mind, fcuk Jay Gould and Mike Milken and Bunky Hunt and Bob Doll and Bronco Billy Gross and George "I am not in the pay of communists, sorry" Soros
think we need a ddos attack to stop him and the printing presses
What an idiot. Ben's blown himself
up. Get out of dodge.
10 year will hit 3.5% in the next
15 minutes...Ben rides the short bus.
Count me Short Silver again at 29.5. Looking for 26.5 target against 30.25 stop. Also nice Head and Shoulders potential on Eur/USD over last 24 hours with the Neck at 1.335.
Uh huh, good luck with that.
Never try to catch a falling knife, and never try to stop a rising tide.
It occurred to me the other day that the roughly $900B to $1T in QE-Lite and QE2 may actually be a move by the Fed and our government to counter the Chinese.
We've been comparing the amounts to the budget deficit and they're similar. The focus has been on the Fed monetizing the deficit.
I'm not sure that this isn't about neutralizing the leverage (pun intended) the Chinese have over us. Has anyone analysed the POMO schedule relative to the maturities of what the Chinese are holding? Again, the amounts are similar.
I came to the same conclusion a
couple of weeks ago.
Bernanke is doing the correct thing.
I know you people want to see drama, but its not coming.
The problem China has is that they really will collapse if they suffer any significant blows to their exports, as their economic playbook to date has exports as its guiding principle, no matter how much they stimulate and subsidize their domestic consumers.
Proof of this is that China backed off its plans to hike rates again (as they threatened Bernanke with), while also refusing to cave in to the USDde-pegging demands.
China is losing in the game of chicken so far, and the inflation running rampant in China is going to cause some other political or economic distortion there, so something will have to give.
I am reminded of the FOMC meeting of August 10 which had an uneventful afternoon while the following day the SPX dropped 35 points.
What douchebags....they can't control
the PDs from dumping.
Or is it the Chinese? In any case, this
is it. Ben's moment to shine or get the
shit kicked out of him.
Jesus, Bubbles is getting creamed by
whoever. 8 minutes to go and no
stick save evident.
Ben is not gonna get a statue in the
park.
Good job, Ben. 30 year rates were
this high in 2006 during the
fraud mortgage boom.
Stick a fork in the yield curve.
Treasury yields are booming post-FOMC
Ben is the kid who couldn't climb the
rope to the ceiling in elementary school
gym class. Somehow, I knew this.
This article title doesn't make any sense.
SSDD (Same Sh_t Different Day) means you are constipated.
Whereas FOMC is all about monetary diarrhea.
They will soon do away with counting 'housing activity' altogether, like they did with keeping tabs on M3, because it's inconvenient and expensive.
Martenson once said "When everyone is complacent, I get concerned. When people get concerned, I try to remain calm". Well, I'm still concerned.
A search returns no hits on "CMBS" within this thread.
"There are 4,091 delinquent loans in CMBS valued at $53.8 billion at the end of November, which is an increase of 49 loans and $1.1 billion. October was the first month of more than 4,000 delinquent mortgages, analysts said.
Delinquency rates rose across all property types in November, with the largest gains in office space, 6.72% from 6.28%, and retail, 7.14% from 6.87% in October.
The delinquency rates for all property types last month are roughly double the rates for the year-ago November: industrial 6.38% vs. 3.11%; multifamily 13.9% vs. 7.4%; office 6.72% vs. 2.95; retail 7.14% v. 4.24%; and hotel 16.42 vs. 7.8%."
http://www.housingwire.com/2010/12/13/cmbs-delinquency-rate-rose-to-8-63-in-november-moodys