This page has been archived and commenting is disabled.
Goldman's Take On The FOMC Statement
Goldman sees the silver lining in an economy padded by $2.4 trillion ($3.2 trillion pro forma) in monetary stimuli and now over $2 trillion in various fiscal injections (of which the tax extension has yet to pass). Of course, in keeping with the tradition of seeing what one wants to see, Goldman percevies this reports as a "modest upgrade" despite the notably bearish extension on housing weakness from merely "Housing Starts", to the entire "Housing Sector", as Zero Hedge noted previously.
From Goldman Sachs.
A Very Modest Upgrade to the Economic Outlook
BOTTOM LINE: FOMC upgrades view of economy modestly but leaves policy settings unchanged, as widely expected.
1. We thought the FOMC statement would be fairly bland, and it was. As expected, meaningful changes were confined to the description of economic activity-the first paragraph-and those were strikingly cautious. Instead of characterizing the recovery in output and employment as "slow," the committee said that "economic recovery is continuing, though at a rate that has been insufficient to bring down unemployment." The description of household spending was also upgraded (we think) from "increasing gradually" to "increasing at a moderate pace"-a remarkably soft change given this morning's strong retail sales data.
2. On the other side of the ledger, the depressed character of housing activity was broadened from "starts" to "the housing sector" in a nod to renewed declines in home prices. And, despite the somewhat brighter growth situation, "measures of underlying inflation "continued to trend downward," a comment with more forward-looking nuances and hence slightly stronger than "have trended lower in recent quarters." Otherwise, changes in language were inconsequential. As also universally expected, Kansas City Fed President reiterated his lone dissent.
3. One might read into this one effort to maintain a super-accommodative posture in US monetary policy. With less time required to parse this statement, Fed watchers have more time to shop.
»
- 3371 reads
- Printer-friendly version
- Send to friend
- advertisements -
Must back up the conviction list and Apple especially.
Time to sell that's for sure. When these crooks start getting this bullish, just like in 2007-2008, it is time to get out before the crash hits. I guranatee they are unloading in the masses to suckers they keep bringing in.
Will Och Ziff file another secondary?
Check out Treasuries. Benny lost
total control today. Stocks haven't
noticed
Ben doesn't care about rates except to drive investors back to stocks. Never mind about housing - low mortgage rates aren't motivating buyers anyway. Was just good for those that "could" refi at lower rates and deleverage - but that is pretty much over now too. If you could, you did already. So . . . only care about equities up up up for wealth effect to drive consumption.
The Fed doesn't get that we need an economic model not built for or only driven by consuptive growth! Wake up already!!!
Higher rates are exactly what is going to kill this fake stock rally. When rates get higher, especially in the 3, 5, 7, 10 yr notes, all that money is going to flock into the bond markets and out of stocks quickly and abruptly. Think about it, which would you rather have a guaranteed 3-5% return for several years backed by the government, or another sure fire stock crash to wipe you out with no protection? The vigilantes are already pushing rates higher on Benny. As Eddie Wilson says "It's just a matter of time....."
The stock wealth model is all an illusion. Ask those who lost it all in the past.
Completely agree. The Fed is NOT actually going to be able to control this thing.
All bears turned bullish, bankrupt banks trying to 1-up the previous guy about certain doubles or triples in everything within months....surest sign certain top is in and everyones desperate to dump the pump.
ROTFLMAO!!!!!!!! STOP IT!!! I'M IN TEARS!!!!!
ES and ZB
Bonds, Ben. Bonds.
http://99ercharts.blogspot.com/2010/12/es-zb_14.html
Well, he's killed housing and household
formation for 2011. Stocks should
really roll with that backdrop. LOL
Stocks and treasuries lower post-FOMC isn't a good sign for Bernanke
He's a loser, just as we suspected.
18 months ago if the train had left the tracks we would have been able to salvage many of the cars, thus putting us back in business by now. When this current POMO train jumps the tracks it will be total destruction. We have dug ourselves into such a hole now there will be no chance for a planned recovery because it will be mathematically impossible. Ben Bernanke has put our economy in a pressure cooker and has turned up the temperature. When the next crash hits we are pretty much done, fini, toast...to say the least. For a visual example put a hot dog in the microwave and set it at 10 mins. Watch what happens at the 6 minute mark, that is what we will look like when inflation picks up and the rest of the world moves away from the almighty dollar. It's going to happen, it's only a matter of time. All this talk about the summer of recovery yet the FED is now monetizing 100% of our debt. In other words if they were forced to stop their ponzi scheme the Govt. would be forced to shut down. There is nothing else anybody can say to dispute the fact that we are approaching the end of this nonsense. It's going to be really bad now that the big banks own 65% of our economy and when they fall there will be no more options but to suffer the consequences of bad economic policy and the continued support of the Oligarchs sucking us dry. Sometimes I wonder if I'm living in some sort of fairy tale? Unforunately this fairy tale is not going to have a happy ending...My guess, a pretty scary war is approaching.
Verdict is in. They're stupid.
"For a visual example put a hot dog in the microwave and set it at 10 mins."
For more thrills, include a steak knife after a bong load of salvia
What would Immelt do?
It's going to be an ugly close. Don't think tomorrow will look all that great either. Have a good one.
'All is well', as long as around $100 billion monthly continues to be pumped into the empty zombie markets at 0% interest.
Pass the whale oil it's getting darker
Pump ain't working in Treasuries.
We'll be at 4% on the 10 year in no
time. Ben's shot himself in the foot...
Fukin Ben tryin to game the bond vigilantes...sitting there all-in, just threw the mortgage papers and car keys in the pot too, holding a pair of 2's.
But...he studied the depression real,
real hard. Now we'll get one with
exorbitant rates...all cause he's such a smart,
smart guy.
At least he's kept his undies on
REITs rolled over and puked out all their gains. Banking too. This is what we need to see.
The saw the fed chairman has feet of
clay and had his butt kicked by the
bond market today.
Market pukefest.
VECO must be a Cramer pick
What do PD employees do on No-POMO winter days when it's too cold for golf, and the nearest titty bar is too far away with the icy roads?
Thanks, Ben....stagflation. And all
you had to do was leave it the fuck
alone.
The bearded clam must abide
Apparently Yahoo has stopped updating the 10 year treasury price. However, from what I can tell, the selling has not abated.
Bond market closed half an hour ago,
so all they can do is pile on to an even
thinner trade
Like CNBC when they used to show market volume, they no longer do.
10 yr at 3.49% according to Bloomberg right now. Bond selling money is not flowing into stocks today. That is a big warning sign.
Thanks guys, I'm just an amateur observer. Your comments help me better understand.
They should know, they wrote it.
The bubblers are getting beat up again today.
FFIV -3.7% CRM -5.3% NFLX -3.3% CSTR -4.9% PCLN -3.2% LULU -3.5%
I spoke of Milken 30 minutes ago and-shazam!,He appears and telling Americans how much to spend. Is there a spell check for hypocrite and DNDN stock manipulation?
Hockin me a chinick ! Kvetching shmeckle face
Screw Goldman!
...
O/T (at least I did not jump in line!), but I invite anyone interested to visit our Peruvian bearing company´s brand new website:
www.ameruperu.com
It is in Spanish, and it is a work in progress, but we are working on it.
Please feel free to go back to your regular programming, and thanks for reading.
The Silver Keisers are all sold out! except the dimes. I put my money into maples this weekend since they were a bit cheaper but now I'm feeling kind of sad. I checked the site today because of few of us wanted a 5 oz round for a souvenier and they are cleaned out. I hope they do some kind of encore with another cool idea. Sorry to bust in like this on your FOMC article Tyler.
the bond markets are SO much bigger than Bernanke and the Fed, ha ha ha
What Bernanke fails to realize is that he's going to be played for a fool by the people he is helping now.
"There is no honor amongst thieves."