Previewing Today's 12:30 EDT FOMC Decision, And The Fed's Options Should The Economy Not Rebound

Tyler Durden's picture

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hugovanderbubble's picture

Today no Pomo

Tomorrow Bradley Turning Point

SHIBOR overnight rate  making new highs

qussl3's picture

Better put on those swimsuits.

The thought of uncle warren's hairy white ass is terrifying.

ElvisDog's picture

Could someone explain to me or provide a link to explain the idea that Becky Quick (is that her name) is sexually involved with Warren Buffett? It truely is horrifying.

Version 7's picture

in the unlikely scenario that the Fed does opt for “QE3”

What are the other options?

Cdad's picture

The idea that the Fed will announce QE anything today is misguided.  I am not saying that Ben is not a troubled man with a bad plan, but the risk to the dollar right now is too great.

The dollar must appreciate first.  If any QE was announced here, the dollar would enter a wild disorderly decline, and all attempts to ease would be consumed by the weakening dollar and the inflationary response by the market [which would include rising rates].  There is almost zero upside to this notion of announcing easing during this meeting.

If I am wrong, and perhaps after a typical and very brief equity market response, disorderly declines in all asset classes [less PMs and oil] would quickly follow, in my opinion.

This entire notion sounds like Wall Street diffusion to take your eye off of the fact that the Fed is out of bullets.

Quintus's picture


The Fed WILL continue QE (in some form) but Bernanke would be a fool to announce it today.  He'll wait until he has Congress and Wall St. kneeling in front of him begging for more printing to stave off an imminent crash.  That way when the collapse comes, he'll have made sure that everybody's hand was on the knife, not just his.

WestVillageIdiot's picture

Just buy LULU and everything will be okay.  Somehow the words "downward facing dog" seem to fit perfectly with a discussion about the FOMC. 

ElvisDog's picture

Slightly off-topic, but I would encourage every red-blooded man to take up yoga. You spend an hour in a room with (mostly) young women in skimpy outfits doing stretching poses like downward facing dog. Oh, and there are supposedly health benefits too.

Sunshine n Lollipops's picture

You ain't nuthin but a hound dog.

Smiddywesson's picture

After yesterday's spectacle, I am inclined to agree.  

Why announce any QEish program when it's not necessary to play that card yet?  The game is to play this out as long as possible.  

The players will therefore only act when they have to.

Buy the hype and sell the news.

PaperBear's picture

I thought I saw a report that Mr. Bernanke used the word 'stimulus' a few days ago, was this the case ?

GeneMarchbanks's picture

"Finally, should banks not respond to the incentive of a zero return on holding excess reserves at the Fed, policymakers could impose a penalty on excess reserves essentially taxing banks that choose to park money at the Fed." 

What part of "Gulag Casino State" did you not understand?


Nostradamus's picture

I'm predicting a QE2 lite scenario for today. They will just reinvest all maturing securities back into treasuries.

TruthInSunshine's picture

You just know The Bernank, aka Shakey 'Quivering Lip' McShakester hates press conferences, but at least he has two days to field and approve the questions being asked by those upstanding 'journalists' in that room, and he knows it's at least a transitory affair.

Ben S. Bernanke, a real genius on all matters economics, who not only sets policies that help to more quickly reward thievery by TBTF chosen ones, but accelerates the destruction of real economic output and job creation, fuels a massive surge in deficits spending (he will not monetize the debt via the Fed QE POMO pump), ramps inflation up, destroys yields on one of the few classes of responsible parties - savers, and helps put both job creation and wage growth into negative territory for one of the most extended period in American History.

Ben S. Bernanke; the man, the genius, the legend.