Goldman's Take On The FOMC Minutes

Tyler Durden's picture

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molecool's picture

"The language used in the minutes suggests that upside inflation risks were a slightly greater concern to the committee at the time of the meeting."

And why again are we all forced to subjectively interpret the hallow words of the mighty oracle?

How is that different from a bunch of Incas awaiting the [drug induced] judgements of their high priests a few centuries ago?

Dollar Bill Hiccup's picture

It would be more enlightening if we had the drugs?

hangemhigh77's picture

Just call the FOMC Minutes, "A note from Lloyd"

TruthInSunshine's picture

Something is causing this "rush." I wonder what it could be? Hmmmmm....

05-18 15:32: Companies rush to borrow - WSJ
Josh Randall's picture

Wellll the "do as I say, not as I do" boys have an opinion, huh ? SQUID ALERT

slaughterer's picture

From FRBNY Bill Dudley's successor, Jan Haztius


Can they really employ Jan at the FRBNY?  Does he even have US citizenship?  Wouldn't he make more money staying exactly where he is?

Tyler Durden's picture

Dudley preceded Hatzius as Goldman head economist.

fuu's picture

Is there a citizenship requirement for the Federal Reserve? Has anyone checked Ben's BC?

StychoKiller's picture

I'd be in favor of a general INTELLIGENCE test myself! :>D

NOTW777's picture

"showed greater uncertainty about both growth and inflation"


then stop lying if you are uncertain

NOTW777's picture

it was only weeks ago we were barraged with happy talk about the strengthening recovery, improvement, growth, etc

Pepe's picture

Goldman: "Gimme" more money. I will tell ya what to do next.

NOTW777's picture

"However, others disagreed"  but we still characterize that disagreement as "evenly balanced"

Hugh G Rection's picture

any sales of securities will come after rate hikes


So they're not going to sell any securities?

I am a Man I am Forty's picture

this is the part that i am not getting, don't understand why they would say this

vas deferens's picture

When you are 75% of the mkt, on the buy side, you can't sell the market would implode.  You can only buy less as suggested in ending QE2.  The fed may raise rates 25 basis points (may as well be zero) and keep buying!!  Even with a quarter point increase in rates there still will be very few buyers other then the FED.

You are looking at this as if it is a free mkt.  The FED is fixing rates (this is just like price fixing only with interest rates) who knows what the the interest rates would be if the FED was not involved other then much higher.  ECON 101 teaches you price fixing does not work in the long run. 

ECON 101 lesson:

If you price fix at a price below the mkt price there will be a shortage.

If you put a price floor there will be a surplus. (this is what the fed is doing)...   Bonds prices are artificially to high creating a surplus (that the FED is buying up)



Bubbles the cat's picture
Bubbles the cat (not verified) May 18, 2011 3:19 PM

Yeah. Nicely proportioned, quietly comfortable, well balanced, soft and evenly textured. I just flushed a pile of it down the pan.....

Cognitive Dissonance's picture

As usual, to get the best take on the Fed's minutes, it pays (metaphorically) to listen to those who actually set them...

So tell me again, who is the master and who is the dog?

darkaeye's picture

Every time I see Jan Haztius, I can't shake the image of Rick Moranis locking himself out of his apartment in GhostBusters.

MarketFox's picture

What´s that smell......


Smells like FASCISM.....

American Style.....

It´s that GS sort of smell.....



The firm serves as a pertinent proxy for the effectiveness of the that although they operate in a securities business frought with risks.....they can show profits for many days straight.....


Of course this is nothing unusual....

At least according to the SEC .....everything is fine.....and speaking of fines.....of course they are always a small fraction of the take......and there is never any jail time.....


And of course the poorer people of the planet can thank GS for their commodity based paper products....


You know.....those products that have caused hardships like feeding their children.....etc....


But of course....


It´s of no concern to JewYork City.....

Let the profit´s matter to whom´s expense.....





Elmer Fudd's picture

Why does the FED even bother putting together a balance sheet?  Seriously, what's the point?

Bartanist's picture

The most pertinent question of all.

When an entity has the supreme power to create and destroy money at will; with no consequences, no checks and balances and no oversight ... and use that money to favor or destroy anyone it wants on a globa basis, including an entire generation of American savers and retirees, WTF do they care about balance sheets.

The Fed's balance sheet is whatever they say it is and no one can challenge them or stop them from tinkering with the journal entries or the money they create for themselves.

fuu's picture

“Although most participants continued to see the risks to their outlooks for economic growth as being broadly balanced, a number now judged those risks to be tilted to the downside.”


Some of us see the sewage is just at chin level, some notice that not only is the sewage at chin level it is also rising.

Eireann go Brach's picture

Tyler(s) you are one funny bastard LOL!

ebworthen's picture


Key sentence:

"However, others disagreed: 'some participants indicated that … an early exit could unnecessarily damp the ongoing economic recovery'. In our view, the latter is likely closer to the sentiment of the committee leadership."

Meaning = QE3

They MAY start by reducing purchase of securities and treasuries (and see what happens).

The end of MBS reinvestment MAY come after that

Then rate hikes MAY come after that.

The FED is having a nice game of MAYbe "JENGA" with itself and our money:


Noah Vail's picture

Cynics, I tell ya, cynics all.


Must be something in the air,

Or martinis without olives, or

More likely, filet of sole,

Without the fillet.

ebworthen's picture

I have a filet of beef for the FOMC.

I'd like to fillet their books.

I am tired of their red herring.

I'm not cynical, I'm marinated.

PulauHantu29's picture

...meaning....No ratus hikus com'n for a long, long time....

Praise the Lord!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Quinvarius's picture

"If we weren't trapped in a box, we'd do this..."

Kokulakai's picture


"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."

Ned Zeppelin's picture

Puh leze.

QE stops, Decent Interval follows, then QE 3.0. Repeat to infinity, or more likely, system collapse. The facade can endure as long as the foundation is sound.  It is not.