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Medley Global Adivsors: Fed Would Curtail Asset Buying If Output Gap Closes Faster Than Expected
Just a headline on Reuters, citing Medley Global Advisors:
- FED WOULD CURTAIL ASSET BUYING IF COMPELLING EVIDENCE OUTPUT GAP CLOSING QUICKER THAN EXPECTED
Is the Warsh-Hoenig-Plosser-Fisher-Kocherlakota mutiny about to go nuclear? We will bring you the report if we see it.
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I doubt it, but if so, then that will certainly change the WHOLE picture!
More like change the location of the crash site.
Yup.
It certainly would.
On the other hand, never underestimate the amount of pure theater that the Fed is capable of.
They are fully cognizant of their media profile at all times -- and fully in control of its appearance and intent.
Blarney: a major tool of the fed.
Nothing but BS ahead of the G20.
QE has absolutely nothing to do with any sort of "output gap".
Fuck I get tired of being treated like an idiot all day by these assholes.
+1, LIARS.
Turd, your thoughts please. I'm going into QE2 at 50% nosebleed P/E shorts, 50% PM's with focus on silver. Not sure the wheels aren't going to fall off the cart soon. Thoughts?
Man, I wouldn't fight the Fed on this one.
Yes, stock prices are a joke. Who cares? All that matters is that the Fed is giving $107B free fucking dollars to the PDs over the next month. Where do you think that money is going to go? The "market" is up 14% on $70B of POMO since late August. This is 50% more cash in half the time! It ain't going down. I can't see why someone, out of principle, would want to be short. Don't. The gains you make in PMs will be wiped out by your losses caused by being short equities.
Very much agreed on silver. Read Harvey every night.
http://harveyorgan.blogspot.com/
Thanks, Turd. All good points.
Well, I did it.
At the urging of several fellow ZHers, I've started my blog. Mainly this will allow me to post charts so that anyone can see how I form my opinions.
http://tfmetalsreport.blogspot.com/
I look forward to any and all feedback. Thanks! TF
bookmarked
Jolly good. Look forward to reading.
QE true purpose is stopping the derivatives market from crashing, yes?
IMO yes
Thats bottom line for me too Turd, real sick of being treated like a complete moron by these ass hats on a daily basis. 'The economy has recovered'! Its a jet contrail'! ENOUGH BS!!!
One good thing about it- it's obviously extremely desperate last ditch tactics.
The very concept of "output gap" is stupid in itself.
Yes - exactly. G20 cover - otherwise they just get rocks thrown out them for the whole meeting.
QE2 cannot be reigned back in because the banks would fail.
It is what I was trying to explain earlier: there can be no inflation without wage inflation.
You can demand-pull and supply-push all you want but the fact of the matter is there will be no inflation unless people can pay for it. The closing of the output gap is the first sign of wage pressure.
:D
Even if the gap closes, the Fed knows that the feeding tube has to stay in. Once the Fed backs away from the markets, back down everything will go. Still no organic support for these levels.
They calculate the "output gap" based on some simulation of what they think it would be the optimal output. So if the gap closes and they want to print more, they just need to change some parameters of the simulation, and voila!! The gap is not closing anymore, run for the printing presses!!
Its all bullshit.
FED WOULD CURTAIL ASSET BUYING BY 1% IF COMPELLING EVIDENCE SHADOW INVENTORY CLOSING QUICKER THAN EXPECTED
Fix'd.
fisher seems unstable - i would not put too much stock on what he says...
CEASE AND DESIST.
SPX down 15 percent this afternoon anyone?
Doubtful. Front-running of the impending, massive POMO will probably drag us back up to near even.
Coincidence Alert: with this week being the week of Glenn Beck's focus on Soros, I read for the first time that Medley and Soros are bosom buddies of sorts.
I trust ZH to set the record straight on this one.
Is it so?
[Also, ever notice how patterns of recognition seem to spiral upward? See also "Baader-Meinhof effect" (http://en.wikipedia.org/wiki/Baader-Meinhof_effect) ]
Indeed, they are! That makes the Medley announcement a total Soros disinformation piece.
Long Bond
Potential IH&S as investors flee the Euro in a "flight to safety."
http://99ercharts.blogspot.com/2010/11/30y_4641.html
http://www.zerohedge.com/forum/99er-charts
In which case Fed to buy equities directly. No prob
IMMEDIATE RELEASE :
BEN BERNANKE IS A COMPLETE MARKET MANIPULATOR AND IS NOT OBLIGATED TO DO ANYTHING THAT HE SAYS. IF MARKETS DECLINE EXPECT JUICE. IF MARKETS RALLY TOO FAR EXPECT REVERSE JUICE.
is that called un-juice?
All your juice are belong to us, make your time!
CKF
I think it's called anti-juice...kind of like anti-matter. Be sure to keep it away from the juice though.
Always nice to see the fed being open and transparent with Medley Advisors so that Medley's clients who pony up the 6-figure subscription fee can front run the market.
this all sounds like the Iraq war, (the financial crisis started as a preemptive move to keep Goldmans stock from tanking) with names for every campaign, QEI, the mother of all QE, QEII, the surge. And of course we all know that once the ball gets rollings, its really hard to stop, and decision by committee flies out the window.
Will there be flash crashes in Baghdad on Wall Street for years to come? probably. Troops (stimulus) on the ground, not in combat, but at the ready? Sure
And will the last (flash crash) still be lingering while the next bubble (war) is being hatched?
"output gap is closing more quickly than expected"
Output gap in what? Unsalable McMansions, dead zone warehouses, empty retail sites, FIRE industry high rise office buildings vacancies-all waiting for the return of US consumption growth.
The US has an output gap in consumption capacity and this consumption ain't coming back.
my last girlfriend's output gap (her mouth) was only worth putting up with because she had a nice input gap...
Sorry, just in one of those laughable moods today where I wanna sell all my gold and buy shit stocks...
CKF
Could someone please point out to me where in the Fed's mandate that is says ANYTHING about the "output gap"?
Or it could be that something over the past 3 days done or said to them made the US govt. blink and are changing the tone of what they will do. For this to come out like it did tells me someone is scared.
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