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What Will The Fed Buy Next?
Submitted by Tyler Durden on 11/13/2010 14:46 -0400
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lizzy,
are you from canada?
ps.......my answer was 'other'. this is really a chemistry question. see accelerant from wikipedia.
Accelerants play a major role in chemistry. Most chemical reactions can be hastened with an accelerant. Accelerants are catalysts which alter a chemical bond, speed up a chemical process, or bring organisms back to homeostasis. An accelerant can be any substance that can bond, mix, or disturb another substance and cause an increase in the speed of a natural, or artificial chemical process.
Other - more politicians.
The model is melting away, however it will be attempted again. History always repeats.
An old video. It serves my young memory portal.
http://www.youtube.com/watch?v=9RTTUqQJhlU
Loved that, thanks.
Favourite line,
"...even though we disagree, we share a common enemy."
Solid.
Deeez Nuuuts
(O) ALL OF THE ABOVE
No kidding. It only let me choose one.
'This is true the Plumber is clearly smarter than the Ben Bernanke'
http://www.youtube.com/watch?v=PTUY16CkS-k&feature=player_embedded#!
They'll just keep buying what they have been already - dogshit.
Maybe Ricketts can interest Bernanke in some (Re)build Wrigley Bonds.
Is this question referring to what we believe the FED will purchase next openly, or continue to purchase surreptitiously?
- All of the above.
if I may suggest - as an another choice.
reason: because everything is f.....
Muni Bonds to stop state defaults -> CMBS to stop CRE collapse -> RMBS to stop TBTF collapse -> Long-Dated Bonds to protect YC.
Fed's buying stocks de facto anyway (and therefore pumping up ETFs) so no need for them to explicitly come out and do it themselves.
They're already buying half of those options.
Maybe hard real estate next? Why not, the rules of the game no longer exist.
The obvious answer is "Other":
http://toys.shop.ebay.com/Retired-/440/i.html?LH_PayPal=1&_nkw=squealer+pig&_armrs=1&_dmd=2&_from=R10&_ipg=&_pcats=19205%2C19203%2C49019%2C220&_sop=1
Could one of you gentle folk tell me how the hell I can check my posts to see if there has been a response to my post on this delightful website. I haven't a clue how to gracefully discover if there has been a reply. the only way I have found in an organized fashion is to go to My account>Track>select a particular article in Track>Go to "Find on Page" and put in my handle. That is inelegant and sucks!
Yes, can I put in one vote for an upgrade to this as well.
In fact, something that listed all your posts/comments would be great.
Just a list of: time/date and the first line you wrote would be very helpful
NO..leave it as is. I can't take the criticism! I can barely keep from crying now.
It is rather clumsy. I haven't found a better way either, though.
Other: More inkjet printers.
The Cayman Islands.
It'll be like summertime year round at the Hamptons without the seething masses at the other end of the island.
I voted "Other" - my 1995 Honda Accord and an old dishwasher I have. Sorry Fed, My FZ album collection is NOT for sale!
You are right, but way behind the eight ball. We already did that kind of QE with the cash for clunkers. Doesn't mean that we won't try it again.
I can see the FED taking a big position in dental floss futures.
No, that was the FEDeral gummit, but you might be right: I should have used the lease on my 2010 Lexus as an example; nonrtheless, I might be moving to Montana soon. HA!
Trend-mongering peccaries would be a good Fed purchase.
Municipal bonds is the correct answer:
1) It is the least conflict if interest sensitive - FED can't be accused of playing favorites by picking amongst private assets.
2) It is the most politically charged, in the sense that the municipalities have political pull, albeit distanced from Washington.
3) The FED is indirectly buying munis rightr now as it is buying Treasuries and the US Gvmnt is bailing the sates out - with the Treasury sales proceeds. May as well come out of the closet with it as the FED has bascially done with directly purchasing Treasuries - through Goldman Sachs of coures....and for a fee.
4) The municipalities are in the most trouble. Did Harrisburg file yet??? Looks very bad on the front page. Remember QEII is all about restoring Keynesian "animal spirits," and having a large piece of your retirement funds in increasingly worhtless munis won't go down too well.
5) It won't be commodities. They are already through the roof - and hurting J6P at the pump.
Can't buy the muni idea...yet. After all Mericans just sent a big message to Congress that there is to much Government. Bail out the muni's and you still have big government.
Why here in Florida we have a "barely legal, out run the feds", new governor who ran on "create new jobs" and first thing he is doing is dump 5,000 state jobs, has teachers in his gun site for pay reductions, big cuts in state Medicade and other assorted thank-you's for senior citizens who gave him his New Job.
No, the muni bonds can wait, much work to be done in the downsizing department.
WOW...2.99 gas, I wish. The only thing here at 2.99 is hamburger with 20% water and 30% fat added so the CPI doesn't get out of wack with those inflation calculations. So when you wonder why the burger drops thru the grill like sawdust, or when chicken or pork ends up being half the size after cooking...you can thank all those needles full of water that your inflation conscience grocery injects into the food you buy.
So, I think the FED will buy more pork, the other white meat.
"hurting J6P at the pump."
I've noticed that in my neck of the woods (Ohio, Kentucky, West Virginia) the gas stations have all been pricing at $2.999 for regular so as not to cross that physcological barrier into $3.00 gasoline and thereby piss off J6P & Co.
cash vs. credit is worthwhile to consider
Where's the option for the soon-to-be Congressional freshman class?
My thoughts exactly.
California !!
http://www.youtube.com/watch?v=6cMd8Qof7aU
your creative talents have no limits, william.....
They'll need smaller shit haulers; small enough so they can dump the shit on the doorstep of every American citizen.
we have been eating it for a long time, but now with FREE home delivery (if you still have a home).
You're gonna need a bigger shit hauler.
Muuuuch bigger!!
At least as large as Uranus..
Other: William Banzai Limited Edition Lithographs
LOL! they'll still have to make multiple trips
They will use the POMO to "try" and short PM's and other commodities. A massive run up on commodities would otherwise signal the Fed policy has lost all credibility - and control. Which is likely what we are in the beginning stages of. Funny how POMO days are starting to close red now.....
I voted for RMBS but those idiots need to buy the long term treasuries.
yea to RMBS - If both Houses with the newly elected plebes do not pass the saving of MERS , Fed will have to buy up more "unauditable" waste paper so that we will never ever know the truth .
Europe?
Too late, the Chinese are already buying them.
Rockefeller Center.
Other: one-way plane tickets to non-extradition countries, bodygaurds, fake IDs, diamonds, and gold bars.
It can only "directly" buy what there is a veneer of its mandated or law required.... Full faith and credit at the margins only extends (questionably) to RMBS. I don't see how they can purchase muni's without first the US gov't stepping in with a debt funded state bailout and the Fed buying the debt. So the real question is "What is the US gov't going to "buy" next?"
I picked Commercial securities, but after thinking about it and looking at the survey. Residential makes more sense since the banks own them now and they need the most help.
Speaking of needing the most help. Municipals make sense too. The law does not apply here with the FED. I will not Monetize ???
Otherwise, Bernanke, Paulson, Kashkari and Blankfein would already be in Jail. Who gets to see the books anyway. Nobody. Yup.
I came across the exact same thoughts as you did after voting for CRE as well.
It gets difficult to recognize which problem is greater when everything is so FUBAR.