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Nomura Sees Fed Issuing QE-Lite Statement On August 10
Just because "extended" and "exceptional" is so H1, 2010. With three brand new doves on the board of the Fed, it was only a matter of time before the printers realized that there is no reason why ZIRP should hold the central bank back, now that even hotdog vendors know all about the deleveraging double dip the US finds itself in. Up on deck we Nomura, which issued the first official change in a call for QE-Light. The firm's economists David Ressler and Zach Pandl, no doubt after consulting with Richard Koo, say, "we now expect the FOMC to 'ease' at the 10 August meeting. Exactly what form this easing might take is debatable. Our assumption is that they will change the language of the statement to signal that the balance sheet will remain expanded, and change policy around the MBS program to start reinvesting paydowns." It won't be the last. Should the Fed telegraph further easing, expect stocks to surge at least another 10% as the 10Y approaches 2.5% as nothing makes sense any more.
More from Market News:
Nomura Friday became the first major firm to formally anticipate a change in Fed policy as soon as August 10 to alter course toward some renewed quantitative easing, arguing that without thechange, Fed policy is becoming less accommodative week by week.
"We think there will be something in the (FOMC) language that maybe reverts back to the language of 2009, around the first time they made this statement, that the Federal Reserve needs to maintain an expanded balance sheet," David Resler, chief North American economist for Normura, told Market News International.
"That begs the question, what does that mean to expand," he continued. "We don't think they will actively buy things," he said, but
that they will have to "back up their language."While the Fed now is committed "only to rolling over guvvies," he said, "they are becoming less accommodative each week. Mortgages are not being replaced" and other shrinkage is taking place.
"They need to have a strategy for preserving (the balance sheet's) size. Does that mean they will reinvest paydowns. I don't know, and we're agnostic on how they will do it."
Just lowering rates "is not on the table any more," he said, and changing the rate of interest on excess reserves "is the last option they would resort to." At present "they are losing assets, so I think they would not want to lose them."
Getting into the practical implementation issue, "do they offset dollar for dollar every prepay they at the time they get it?" Resler asked. "They may not be able to do that."
In any event, the change in language, while having its own effect, won't be enough. There will have to be activity, he said.
Resler and colleague George Goncalves have dubbed whatever is to be done "QE light," with a risk of other actions, such as cutting the rate on excess reserves.
Overall, the Fed must do something because of the deterioration in the data since March and the downward revision in the Federal Open Market Committee's outlook, Resler said. Nomura does not see another recession, but a sufficient case based on economic performance for some manner of easing.
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Sticks and stones......
Just like the good old days.
Launch QE at the worst possible time for the bears.
Precisely in the time window of a supposed "crash" predicted by soothsayers, astrologists, gloom and doomers, etc.
Remember when Greenspan unleashed a massive rate cut back in the day during options expiration?
Oh, I remember that day/week. I made a pile of cash!
And the best thing was that there was plenty of time to BUY BUY BUY!
My trading buddy shouted out "they cut rates", and offers were disappearing. I maxed out anyway, but sold far too soon, as several in my trading room held for days and made millions.
ShShenanigans, no doubt, but that was one time I got paid along with the criminal bankers.
PS. Nice tits!
Go ahead and unleash QE2... Jesus, what the fuck does it matter anymore? we're trading on vapor and fumes... but if everyone believes it, it must be so right?? F-ing crazy BS. Go ahead, unleash more of your artificial means of propping up a BROKEN/DEAD market while selling it as the real deal.... as the public slurps it down as gospel. Play your games until at loooong last, the market finally breaks as there are no longer greater fools to finance this witchcraft. The middle class is destroyed while having to choke and swallow the words of Milken.. "they (middle class) will have to choose between a nice home or a good education". FUCK YOU Milken!!! You began this entire sham. Now the whole country has followed your model...to its doom. Mission accomplished... middle class eviscerated.
"In the absence of a gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good and thereafter decline to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as claims on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to be able to protect themselves.
This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."
The above was said by Alan Greenspan, 'Gold and Economic Freedom' in 1966.
I'll bet you greenspan junked this. People dont like their words used against them. I wish you could package his words into a baseball bat and beat his brains out with it.
To me I never look at what the Fed as saying as being an honest motive. What I believe this new QE would be doing is simply buying up more toxic MBS that the banks can't get rid of. If not the banks need to raise more capital, even more than what they need to raise anyway.. They are going to prop up banks like they always do, it really doesn't trickle down to the general public in any way..
I'm holding out for my 1.99% refis
Im a dumb fuck short and even i know not to fuck with the Machine.
" Its a big club, And were not in it" George Carlin
Such language at the 8/10 meeting and maybe even the hint (this article as pathfinder) that such language is probable will send rare commodities higher. I expect gold to retrace to its highs post haste and make for higher ground. 8/10 target $1275. If this language is hinted at strongly or bellicous circumstances arise that target will be obliterated in the rush to safety.
I believe personally that it will make a 50% fib retracement to approximately 1220.
"nothing makes sense anymore" - because the machine's gears are completely stripped.
Rev the engine but the car won't speed up - in fact friction is relentlessly working to slow the vehicle's forward motion.
Is this the phase where QE doesn't matter?
I wonder - - -
Even Keynes knew about the "liquidity trap." - Ned
I don't think the Fed really has any bullets left, this is just an attempt to bailout banks and prevent the market from plunging when we re-enter recession. When things get really hairy is when they want the shorts to be worrying about 'easing'.. but you can't ease when you are zero, I don't care if Ben thinks he can fly in a helicopter or not. That is just Fed lore. Trying to jawbone things so that the stock market stays orderly or actually goes upward. This will go on for the next 6 months or so and eventually the market will start to iron out and then I guess they have to talk about raising rates. Or better yet just leave them low forever, like Bullard was referring to. Raise and you kill the recovery. Don't and you start a bubble. Which do you think they'll pick (or are we 'Japan')?
(or are we 'Japan')?
http://www.youtube.com/watch?v=CUflIrTSwK8
And the legendary curtains are drawn 'round Baby Bankrupt
Who sucks you while you're sleeping
It's the theater of financiers
Count them, fifteen 'round a table
White and dressed to kill
Oh caress yourself, my juicy
For my hands have all but withered
Oh dress yourself my urchin one, for I hear them on the stairs
Because of all we've seen, because of all we've said
We are the dead
We are the dead
We are the dead
You are mostly correct. TARP was about recapitalizing banks (loosely used) directly and setting up the infrastructure to ensure they can remain going concerns through such items as being correct 100% of the time on their trading activities. The banks, however, were just the avenues by which their principal actors siphoned obscene amounts of money... either directly through bonuses and salary or indicrectly through dealings with related/controlled organizations. In a nutshell, taxpayers pay banks, banks pay principal actors (not necessarily shareholders). In other words, to say the fed is attempting to bail out banks is not very accurate... they know monetary policy is a failure at this juncture and the alarm bell has sounded... it's a race to the life rafts.
Spot on with no bullets left. Monetary policy doesnt have an answer for our current predicament. The playbook is old and trusted, but unfortunately for a different game.
check out the USD chart on a daily, weekly, monthly basis.
http://www.fxstreet.com/rates-charts/usdollar-index/
and now for some dessert:
http://www.youtube.com/watch?v=sQOQdBLHrLk
Are you scared? Don't be. The USD and UST's are still regarded the safest on the planet. That's why their yielding such low rates. USD's are secured by the same backing but just yield nothing (immediate expiration). Any government offering high yield on it's treasuries are the ones at risk for obvious reasons.
Here's something for ya.
http://globaleconomicanalysis.blogspot.com/2010/07/should-china-dump-dol...
The public is simply not ready. Not now or possibly not in 2012.
Even with a $T liquidity injection, it's really up to the public to accept it and capitalize on it through credit. Unlikely with the current unemployment conditions we are facing.
To put the credit vs stimulus (QE) into perspective, the US mortgage market alone is estimated at around $10T and so much is still defaulting. Increasing interest rates does not help but quickly offsets any growth in credit demand. True growth comes with productivity and employment, not gifts likely to be caught in liquidity traps.
Ags are already running....
Let's see, buying MBS when nobody is buying homes does what again?
Thus I would like to review what happened to another developed quasi-socialist economic structure and remember what they encountered in Sweden in the early 1990's. This quote from Mr. Urban Bäckström, Governor of Sveriges Riksbank at a Federal Reserve Symposium in 1997 at the Kansas City Federal Reserve spoke volumes about America's problems today as well as those of the Fed now:
To give you an idea of how drastic their course of actions were, they drove their equivalent to the Fed Funds rate into real negative territory. That is pretty much the last bullet left for the Fed, to force banksters to abandon reserves and increase monetary velocity. Printing more and monetizing debt will have no effect. Liquidating weak banks and increasing the cost of holding money on deposit for the banks at the Fed is the only solution left and God helps us should they take this route instead of letting the economy deleverage naturally.
FYI, I wrote about this theory for Bernanke's final last gasp desperation solution in a piece titled "ABBAnomics" on April 2, 2008. Sadly, I think we are there and this will turn out to be the hyperinflationary trigger he has been so desperate to avoid.
IIRC the Fed still is paying interest on excess reserves. All it would take is for the Fed to poison the nipple and start charging interest on them, and guarantee losses, and there'd be loan officers standing on every American streetcorner with a laptop and a checkbook.
Nope. There can no longer be a meeting of the minds between the banks and their debtors. In a nutshell, credit worthy debtors have decided en masse to run the hell away from any additional leverage. Given increased lending standards (even the banks have figured out it might not be a good idea to loan to everyone), there is simply no one to lend to. And, even if they FORCE banks to lend, the demand for credit simply isn't there... even at 4.5% rates... just isn't going to work...
You imagine they'll give up, and give up empire along with it. Wait and see. I'm not saying it'll work, I'm saying they'll keep trying until the currency explodes.
The currency will explode only because the outstanding debts are simply too much to pay and we end up defaulting on it... not because we try and print a couple hundred trillion to keep up the charade.
Effectively, the FED will be ended at the most opportune time to keep the pitchforks at bay. It has always been a vehicle of limited lifespan. They have gotten a shit ton of miles out of it.. retirement is just around the corner. It is full of nonperforming assets, just like the GSEs, which will also be demolished and the best spoils given to the club members.
Wait a few years or generations and we'll get another FED by a different name...
They aren't "giving up" they're just regrouping. Just different parts of a big cycle...
They benefit from keeping it going as long as possible... and the way to do that is through a controlled demolition which involves sequentially decreasing amounts of printing each version of QE. There will not be another QE 2.0 that is QE 1.0 squared... that's not how it's going to work. They know the jig is up... no more credit expansion. Now they go the other way to squeeze the most out of it.
Since I'm just another blogger and not an economist at the Richmond Fed, you'll have to take this comment with a grain of salt...
By doing so that would help and giving the money away would also. The problem is that with savers already being obliterated, the 2 and 10 year Treasuries sending a clear signal as to our future, and the government paralyzed by Keynesian mental masturbation in Congress, they are so scared to act they are engaged in the age old "paralysis by analysis" instead of acting now to prevent the next drop in economic activity. If the Fed started handing out money tomorrow with over $2 trillion in QE, the impact on Main Street, if any, would not be felt for over six months. By then the dollar would crater so severely that the other central banks of the world would tell the Fed to piss up a rope and that's when our lives would get really interesting. No economic growth, no wage inflation, asset price depreciation and hyperinflation would present the morons in charge with the ultimate challenge:
Do they put the tanks around the banks or the WalMarts?
Because they are going to need them.
Amazing! You would think that the market participants, at some point, will face the reality of the conditions the US economy is experiencing. The US multinationals and South Korea & the likes (nothing against them) can't offset the black hole in the US, even with QE. One day, in the probably not so distant future, we will experience flash crash on steroids.
If only they would have let at least 50% of the losers fail. What a shame.
I don't think they'll actually do QE II for a little bit longer. I think they will talk about it like with these investment banking pieces, to goose the market. But they know that QE II before the election would be an admission of failure of QE I and stimulus and the working plan(s) at the moment. They also know the purchase of Treasuries really won't do that much (though it might bail out China/Banks before the coming bond market crash). Oil, commodities would take off, which would present the wrong type of inflation.
I think a massive refinance like the one discussed the other day would be much more likely. It comes off as populist, refinances people into likely recourse loans and solves some loan documentation issues that are floating to the surface. And even better it bails the banks further out of their deadweight loans.
In the end, either will further take us from the ultimate solution...
So they are gonna eat 5,000,000 loans to illegal aliens?
No, I bet they are legal by then.
They are not going to refinance anything. Your right about the talk. The revisions we saw today from the BEA proves (in my mind) that all the FED can do to combat deflation due to excessive debt is talk and try to fool the market. BOO! Now pay your debt, default and more than anything recognize your assets for what they will sell for today, please, so we can start a new bubble and Americans can get back to work.
Sack the Fed!
yeah....they will have to back up their language....
I'll make the offer again, Mr. B.S. Bernutty. Gimme a sack o' C-notes and I'll spend 'em. Put me in coach!
End The Fed!
Go to bed.
I'm sticking with the puts come hell or high water. I recall that Japan went down hard during QE tactics. When the market says so, no one can control it. We are now at the apex (see Shanky - http://shankystechblog.blogspot.com/). Too many variables and it will all come crashing down regardless of Fed intervention. There is a book coming out that will shock all of us in September by David Kahane. Cant wait.
Good Lord buy everything- free money - this is a helicopter drop!
They will reinvest paydowns mostly in US treasuries. At these rate levels, their MBS portfolio may pay down as much as 300-350bb over the next year.
And and immediately after he was baptised, lo, three fed doves descended from heaven and alit upon the shoulders of Bullard the Dullard. He raised his arms and shouted out loud: "I HAVE SEEN THE LIGHT, PRAISE THE LORD!!"
The confounding thing about being short for the past year is that fundamentals only matter when the government has truly run out of options that either work or at least scare bears. I believe they can still scare bears and the market can remain irrational longer than you can remain solvent. Especially with Uncle Ben's Wild Rice QE recipe.
All of this speculation about the August 10 meeting, the PPT, QE2, etc. is what the Fed does best - keeps everyone off balance while doing nothing itself. If you don't have a plan to invest independently of all this nonsense, you had better find another line of work.
If one believes that the Fed is acting in the interests of the monied elite---and there is nothing to suggest anything else motivates them---then QE2 is a sure bet. Banks did not have too good of a quarter, so they'll be itching for another G650 to go along with a blow-out party season in the Hamptons. Ben is their man, and will provide.
The ruse will be "to stimulate lending", but ZIRP and MBS buying have just the opposite effect: no-risk yield curve surfing with any excess available for equity ramping. Traditional banking has too much risk when things are so heavily skewed in favor of the Wall Street reach around.
The eternal job of the 305 million Americans not on Wall Street is to serve up sweat and lucre for the benefit of the few. They're born into this world to serve the masters. The job of the monied elite is to take everything they can get and then some. "Entitlement" is what it is for them. So long as everybody does his job well, and without complaint, the party goes on forever. Yea, yea, yea......the people won't stand for it and the system will explode, etc. Ain't gonna happen. Not now, not ever. Bond market is telling us that much, if only we'd listen. Courage and self-respect have been bred out of the populace. Masochism is now the dominant trait.
Residing where I do (a military junta), I used to wonder why the masses never rose up, at least not successfully. For the answer I only need look at the land of my birth, where there has never even been a whimper of protest. I must conclude that evolution has decided that all but a few are meant to be serfs, or like the late great Project Mayhem used to write: worker drones.
Everybody gets what they want. Everybody gets what they deserve.
Nope. I propose that the FED has been given a limited lifespan and will be sacrificed to the pitchforks to ensure the hidden remain that way. Its assets will be sold at pennies on the dollar to those in the club and their freshly created subterfuge entities (just like your local bank is presently dumping shadow inventory on its own club members, albeit very slowly). QE 2.0, in a similar or larger amount of $ is not going to happen. They will continue to raise the debt ceiling, boiling us in the cooking pot, but they will not just throw us in the fire. Each QE is going to be relatively smaller in portion, effectively requiring a haircut by many players each round. It's a controlled demolition until panic hits and they have to just let go... they can't do anything else. Originally they had hoped all the favorites could become recapitalized by the time panic hits. I don't think they'll get the chance.
All the talk of QE 2.0 is just that, hot air. Monetary policy is a monumental failure under our present circumstances and everyone knows it. The only thing they can do is attempt to exploit the expectation of inflation. They get to keep the charade going so long as there is a question as to whether we have inflation or deflation... however, once it becomes clear to the herd, the game is over. This is just a part of the continuing saga of misinformation to ensure perpetual confusion in the markets, which is their present lubrication.
Nope and Nope. JPM or some other big bank will be sacrificed in an attempt to stuff all the badness into one big "bad bank", not the Fed. The Fed is the keystone of the entire welfare/warfare state. By constantly stepping on the monetary accelerator, the Fed enables constant increases in tax revenues, solving the "guns and butter" problem ("Why not have both?"). Without it, the welfare/warfare state cannot exist; economies are not normally capable of supporting both without massive repatriation of looted foreign wealth. Volcker pressed the reset button in 1980. He got away with it because we still had savings then, and because we still had manufacturing then (compared to the rest of the world), and because...you get the idea. No "Japan Scenario" for us this time. Goldman is more powerful than JPM, JPM will take the fall.
http://research.stlouisfed.org/fred2/graph/?s[1][id]=DGS10
No reset button for us this time, but they will try anyway. What choice have they? Give up and slink away? Give up empire and retire? You don't know these people. Chindit says most of us are born to be serfs. These people are born sociopathic. They can't change any more than Chindit's masses can.
Rates are at zero. Rates will be driven negative. The currency race to the bottom was once thought to be contemporaneous. It is not; it is sequential. It's the dollar's turn next. This time around will test the mettle of those nations (Russia, ME, CHina) who've been calling for a new reserve currency.
Someone scrawled on the wall "I smell the blood of les tricoteuses"
JPM is the most likely candidate for such a scenario.
The problem is, what continuing need is there for the FED? It's playbook doesn't work in the current environment. In a flight to quality, we can move treasuries.... plus, it needs congress to authorize its actions (agree to raise the debt ceiling)... which at this juncture is easier said than done (easier to get SOME money, incredibly difficult to get QE 2.0 blitzkrieg money).
Further, given the wealth gap, we're only just now figuring out we're at the tail end of the robbery... day late and a dollar short unfortunately. Why do you need to keep up with the charade when you've already got all the spoils of the charade? Doesn't make sense.
Also, what makes you think they're going to retire? They're going to swim in their spoils... As government gets eroded away, they'll become our local and regional robber barons (or at least have a helluva head start trying). They will have direct control rather than through proxy. Once we begin collective bargaining again and start dragging their coattails, then another FED will get implemented and we'll repeat this process.
QE2 lite severed for the November election party. Works for me.
QE2 lite severed for the November election party. Works for me.
See, there's three kinds of people: dicks, pussies, and assholes. Pussies think everyone can get along, and dicks just want to fuck all the time without thinking it through. But then you got your assholes, Chuck. And all the assholes want is to shit all over everything! So, pussies may get mad at dicks once in a while, because pussies get fucked by dicks. But dicks also fuck assholes, Chuck. And if they didn't fuck the assholes, you know what you'd get? You'd get your dick and your pussy all covered in shit!
-AIG Quant
Please speak for your own dick, Bob.
But if your willing to wear antlers and run through the woods you can be of some use to our Elk Lodge in Alabama...
What is interesting about today's markets, based on my 25 years investing for a living is that almost no "professional" investor believes there is anything but disaster at the end of this Mad Central Bank Money Printing Fraud. But at the same time almost nobody is willing to make a big negative "off index" bet after the shock and awe of the mortar-shot rally caused by a few trillion $$$ of money printing.
It is really just simple game theory: Can this obvious madness last longer than my career staying power? And the "pros" are thinking, yes it can.
"Extraordinary Popular Delusions and the Madness of Crowd" would suggest the end is near because very few have the balls to make that bet. Unfortunately that includes me to some extent; and I am ashamed...
I agree with your view. That's why I think commodities will go much higher. You can't short this market and you can't sit in cash... what to do?
Sit on the toilet with a good book and fugadaboutit
On a heavier note just buy gold.
Whatever they do, it has to be coordinated with the PBoC and the ECB. Nothing is on until you see Timmy G kowtowing in Beijing, and Bernanke kissing ass in Brussels.
I think Timmy already gave China the "Bob" treatment. And the ECB is more screwed than we are: Worse B/S's, no reserve currency, and no indimidating nuclear arsenal. But the dance is clear, I think: Fed talks weak economy, EU rolls out fake stress test, AND EVERYBODY PRINTS MONEY LIKE CRAZY.
At least we know that has workd well for Japan over the last TWENTY YEARS!
I disagree. US politicians know the public does not want any more debt, so, the politicians and the FED don't put the money just created on the books. Why would they care when they own the currency of global trade. It's optics. If I was BB I would mail every american a cheque for $250 with a time dated must spend date for all the good his conspiracy with the FED has done. Illusions are not sustainable.
A few observations. The "buybots" as I refer to them are there, leading the market aggressively at key technical junctures; and yes, the 3 pm pavlovian ramp up. Six months ago, it was less obvious, maybe because there was more money at play. As in environmental matters, it seems that in economic affairs the solution to the pollution is also dilution.
It really is amazing to watch when the buybots are turned loose. Wow! Like climbing Niagara falls. I’m surprised there isn’t a video out already showing you how to game the system. This is not sustainable. You will either run out of money, time or both. Time is the enemy here. Time is what your elite are praying for, because time is the only non-fungible thing that they can’t print or control. Time for what though? When time is your enemy, you do not hold back resources. I would argue the second round of money printing has already happened or is happening as I type and the main stream media is simply marketing what has already been done. After watching the DOW for almost 10 years, you can feel it in your bones when the nature of the trading changes, and the Fed has been pumping this pig for some time now.
The Fed's line in the sand is 9600-10,000. I might add that is very unwise of them because as in war, by not letting the DOW push through the Fed has created a tacit public policy that favours one group over another. It is picking winners and losers. The policy creates tremendous policy inertia because failure then becomes unimaginable. Fact. This is not sustainable because there is no off-ramp or back door.
I use to wonder if it was possible to somehow game entire nations; not anymore. When I witness the power your nation has given to an unelected and unaccountable group of bankers, I know the games up. Fact. When bankers become apologists instead of trusted guardians of their client's life’s blood - their money it is time to leave the building. This is not a sustainable way to run a business let alone a country.
Gold. Yup I've got physical on hand and have made paper profit. You know like those paper profits that people had in their houses once. I think I'll keep the gold. Living in paper profits is not sustainable.
Living in a multi-polar world changes the rules of the economic and financial game. So what I say. Look at history. This is has already happened a few time now and we know the plot ok! Ask yourself this. Are our elite using history to make sure we avoid what is about to happen or are they using it as a guide? I would argue they are using it as a guide. They don’t have the character to tell their own that they are going to have to live with less. Sucks, but it’s the truth.
Disclosure. I am as short as I am long the market. I’m hoping to see the elite tarred and feathered for the breach of trust and their inhumanity.
Zerohedge, I'm surprised you guys missed this article on the Israeli helicopter crashing in Romania:
http://latimesblogs.latimes.com/babylonbeyond/2010/07/israel-air-force-helicopter-crashes-in-romania-during-drill.html
Anyone wondering what a long-range Israeli helicopter is doing in Romania? Anyone notice the distance Romania is from Israel and check what other countries are a similar distance away? Hmmmmmmmm....
It was a joint training effort. FWIW "Israel" and "US" is interchangeable in this context.
Now go about your business as will I. See you on the other side.
Romania is the same distance as Iran. In order to attack the nuclear weapons facilities, they would need to take it using troops. They are training for this situation by simulating a long-range helicopter flight roughly the same distance to Iran.
so these are the DATA which are coming out next week.....
http://www.minyanville.com/businessmarkets/articles/stock-market-preview...
any guesses for these numbers ...which do u think will affect most
too much wordpaper numbers crap on this site.
where's marla's mixing when u need it.
If she was up your ass you'd know...maybe. (channelling dabalina)
no chance they announce that in august. nomura searching for some headlines to divert the attention from their broken business. And after all ... its richard "print as much as you can" koo we are talking about .... If spoos were 850 or 900 then yeah they might start really thinking about doing more sooner, but with stocks here they don't need to. Remember that part of the agenda for QE is to stabilise asset prices as the private sector deleverges. S&Ps hardly need stabilising at these levels.
Good point Huggy but maybe the "spoos" are really at 800-900 if the Fed withdrew their investment in them?
Hence the panic...how do I get my money back...we all been there...act accordingly?
+1
Faber on QE /July 16 Bloomberg
http://www.bloomberg.com/news/2010-07-16/faber-sees-fed-introducing-mass...
I get "video not available right now" message, either Bloomberg pulled it or too many ZH viewers watching it now.
You are right. .August is too far far from the elections.It gives too much time for people to forget or for the plan to backfire. look for it on OP-EX in October.
Updated DOW charts:
http://stockmarket618.wordpress.com
I wonder when the market will ever see QE for what it really is -- a sign of desperation that temporarily delays, but ultimately guarantees, a societal plunge into the abyss!