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Reaction To The FOMC Statement
Predictable move in the dollar, unpredictable whiplash in Treasuries. As for the equity bubble, it will do what it does, until it pops. In other news, the cremation of the formerly reserve currency known as the dollar will be held in the Federal Reserve's back yard at a convenient date. Chairman Ben will deliver the eulogy.
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the higher it goes the louder it pops
Well, as we learned from the original movie Alien, no one can hear you scream in space. So if these crap equity indexes keep rising much more, the pop will be heard by no one, but the fall will be dramatic.
No one will be able to hear the screams from Cramerica, home of more Aliens than anywhere else in space.
an interesting CRE & Corus bank related story:
http://latimesblogs.latimes.com/laland/2009/09/astani-bankruptcy-concert...
more personality clashes & bizarre bankruptcy court cases to come... do I smell a Green Shot !?!
No new ponies announced
Seems supportive of the dollar to me ...
Agree, and they just implicitly told you that there's not going to be any more....
I wonder what the Euros will do at G20. They may get a bit vocal. Last G20 was all "we do not want protectionism!!!1" yet Fed adopted the biggest protectionist measure of them all, currency debasement.
no pop coming in the immediate future as long as the dollar stays cheap. and it will be for a long time. a shallow correction at worst.
Agreed, these guys should be thrown under the jail for trashing the dollar and not allowing any interest on cashing giving the banksters free money.
The stock market is speculative, muni's are speculative, and an invisible tax with no interest if you are in cash.
Bill Gross must be laughing so hard.
Look at the ramp on bunds.
Bill's also laughing at Steve Liesman dollar asset comments!!
I also did a double take after Leiseman's comments
I remember now why I limit my CNBC viewing to 8 minutes a week.
Agreed. I envy your digestive system's constitution for surviving the 8 minutes.
Nice Avatar. I have been looking for a blue one just like it with no success.
lets see how bunds cope with tomorrows huge syndicate deal thats coming.....good luck!
Traditionally initial moves post Fed statement are a head fake.
whats the point of your house prices, stock prices going up when the dollar its denominated in is crashing to the ground?? I dont see how CNBC can say this is good for us, maybe the world, but not for us Americans. We are getting jipped and we dont even know it.
Not good for the world at all. debasement (as retarded as it is when exports dont make up that much of our GDP) puts massive strains on all the other merc countries. they've got to be close to following suit...
The Fed statements are a Rorschach test. People will see in them what they are disposed to see. With sentiment as bullish as it is, what else would the market do but go up?
no way in hell do the banksters allow the market to decide how it will react to Fed statements
the markets are pure farce every minute of every day now
Did you see Steve Liesman trying to suggest that destroying your currency is good for the nation.
It is so past time for the Fed to eat shit and die
ok so its on...the FED is willing to risk failed auctions for treasuries
they won't defend the currency so i can't wait to see primary dealers caught holding the bag on auctions
Steve Leisman = most dangerously ignorant man in America.
That's enough to get DXY below 76. Where she stops nobody knows.
Burn the god damned Fed to the ground!
I wish I was a Congressman so I could attach a rider to HR 1207, the Burn the Fed Amendment. It would appropriate $1.7 million for lighter fluid, strike-anywhere matches, and 35 tons of rock salt so that no banking oligarchy may ever grow there again.
I'm not surprised they extended the MBS purchses into 2010... they were able to extend the juggling act on the Tresuries by another 6 weeks, and it's been effective in deciving the huddled masses.
The important thing is that the Fed is still in the mode of letting these programs expire... but they on the Entended Release medication. This may extend the timing, but not the effect of the next Minsky moment.
the programs will never expire. they cannot expire without crashing the markets. Now that the asshats at the Fed have turned the stock market and credit markets into a frothy farce, the crash would be even more extreme than last fall's. These owners of the Fed and their stooges like Burnyankee are simply criminals, just looting trillions and trillions, completely making matters worse, effectively pirates scuttling a ship they've taken everything from.
SCUM
That next "Minsky" could switch out the lights on the FED itself.
The Fed. What a fucking joke.
Just got an email asking us to figure out how to trim costs within government departments and reduce the burden on the taxpayer. The best idea gets to meet the president. I was laughing so hard I almost shart myself right in my office....
take the coffee cup as a prize.
You can't help but feel Wall Street is setting itself up for a big fall.
Didn't uncle Ben promise that he was going to pull out before making a mess? Does this mean that QE( quick exit) is being extended?
Tyler, I will bring the casserole and the paper plates. We should all coordinate in terms of who is bringing what to the funeral after party.
Does anyone have any food allergies I should be aware of?
Nuts!!
Dairy
Hopium
Houston we have a problem. Key reversal on the horizon. Can the authorities please kill the dollar some more to prevent this.
I can't hold her any more, Dr. Obama. She's breakin up.
Start selling the news, I'm cashing out today.
I don't want to be part of it - Equity Bubble
These vagabond shoes, are anxious to get the f out of here
....
+100
Funny stuff. Looking at the market reaction (at least the DOW) it seems to be...
YAY!! PARTY!!!!
Uh, wha?
WTF!!! SELL SELL SELL...
Yeah, good times, these. Good... Times.
i am allergic to green shooots ...
Serious struggle to stay green...hmmm, where oh where will the next green shoot emerge? consumers? no, scratch that. banking? hmm, not so much. manufacturing? definitely not. Asia? Not lookin so hot. All right start piping CNBC into every home every hour of every day, that'll work.
PS...I think I decided that I must be un-American cause I just really want a several hundred point sell off just to see the reaction from all these idiots telling everyone the best place to be is stocks.
Scotty to Bernanke - She cannae take much more of this!
I prefer this one:
Bernanke: "Stay on target."
Causal Observer: "Pull up!"
Bernanke: "Stay on target."
Fed: "I've got a problem here."
Casual Observer: "Eject!"
Fed: "I can hold it..."
Casual Observer: "You're too close!"
Fed: "No, I'm alri....yaAAAAARghghg"
I´m calling the bottom for the dollar today.
Baby I hope so. So does Succo. Although I bet he does far less hoping than I do.
Tyler - there will be two eulogies. One recorded and one written. Both will differ significantly.
now that was odd, 160 point swing in the DOW and 20 points in the S&P in an hours time.
Reaction= hit the sell button! I love it!!!!
Like cockroaches when the refrigerator light goes on.
Not that I have roaches. I er.... heard they do that. :>))
Bernanke> japan be damned
with the dollar dropping everyday, i cant imagine how japan is going to export anything into the US
I don't know why, but I have this bizarre desire to jump on the nearest table and start singing "La Vie Boheme" from the musical "Rent".
You can stick a fork in the dollar, it's done. I don't care what Steve LIESman says. He's a major asshat.
Dearly beloved we gather here to say our goodbyes
Here she lies, no one knew her worth,
The late great daughter of Mother Earth
On these nights when we celebrate the birth
In that little town of Bethlehem
We raise our glass
You bet your ass to...
La Vie Boheme....
ok..i guess i have to log in to post! damn i hate that..ok...second more calmed down comment...WTFFFFFFFF!
the Fed is going to buy 1.25 TRILLION of MBS and 200 BILLION of Agency paper? thats 12% of GDP ...AND they are going to do it by April 2010? OK..explain to me why the FED is part of the DEBT CEILING! if the Fed is part of the Government then it should be, and if it isn't then the Fed is just a bunch of academics who can print money...I can go to school too, and print money..then i can swap my zero coupon perpetual dollar bills for those other private individual zc perp dollar bills..ok am I an idiot? is this the end of an existing program or a new one?
I'm totally confused as to how the announcement of no continuation of QE and a slowdown of MBS purchases was a bad signal for the dollar? Could anyone explain?
oops, from Bloomberg:
The Fed has bought about $862 billion of its $1.25 trillion agency mortgage-backed securities program, and $129.2 billion of a $200 billion program of U.S. agency bonds. Demand is returning to housing after the industry shaved an average of 1 percentage point from gross domestic product each quarter since the start of 2006.
i got confused with this from the statement:
To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt. The Committee will gradually slow the pace of these purchases in order to promote a smooth transition in markets and anticipates that they will be executed by the end of the first quarter of 2010.
just the odd 400 billion of agency MBS and 71 billion of agency bonds purchases to go..my bad..a mere 0.5 TRILLION and they have already done 1 .0 trillion...sorry
And now that half trillion will be spread out along a much longer timeframe.
Add that on top of "already acquired".
Here is my reaction. Bernanke instead of being positioned for an early confirmation, is being positioned to be the fall guy. By pulling his confirmation forward, they have made it such that if the market crashes, Bernanke will not be able to serve out his term.
When the senate fails to confirm, Bernanke will have to quit on the spot.
OBwants Larry the Harvard chum. Volcker is just a tad too old.
If there is one thing that "O"man does well is chuck used up folks under the Greyhound diesel.
By the way, OB has kept Gates around for the same reason: To have a fall guy ready the military stuff goes in the crapper. By the way, Gates was named by the democrat congress. His is not Bush's choice, though he appointed him. Consider him another David Souter: Democrat congress choice; republican appointment.
He is certifiable I believe.