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FOMC Does Exactly What Market Told It To Do
Just as consensus demanded expected, the FOMC transformed sterilized 'Twist' into unsterilized QE4 in addition to QE3's MBS buying and lowered economic forecasts - dropping calendar-based rate guidance unchanged with a shift to "Evans-Rule"-like threshold-based guidance. High inflation, forget it; 'lower' unemployment, naah; market wants 'moar' so market gets 'moar'. $4 Trillion balance sheet here we come (check to Draghi's OMT and Spain or EUR 'richness' crushes hopes of recovery).
- *FED BOOSTS QE WITH $45 BILLION IN MONTHLY TREASURY PURCHASES
- *FED TO KEEP BUYING MORTGAGE BONDS AT PACE OF $40 BLN PER MONTH
- *FED SAYS MONTHLY PURCHASES TO TOTAL $85 BLN
- *FED ADOPTS ECONOMIC THRESHOLDS FOR POLICY TIGHTENING
- *FED: RATES TO STAY EXCEPTIONALLY LOW WITH JOBLESS ABOVE 6.5%
- *FED: RATES TO STAY LOW WITH INFLATION SEEN AT 2.5% OR LESS
Disappointingly for AAPL investors, there was no explicit decision to monetize mini-iPads (or their own subsidized student loan debt in the ultimate reacharound).
Pre- And Post- Levels (post = 15 mins after news) - small moves in general
Redline comparison with October statement:
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Because then they's loose their ability to use economic policy for social engineering ... which is what they really seek & enjoy.
Here's some other wild ideas--
Building a trans-Western aqueduct system to supply California, Arizona, Nevada, Utah with Great Lakes water after the Sierra snowmelt craps out
Building a basic system of electric trains and trolleys to connect every town of 15,000+ population
Making university education free for the top 20% of SAT test takers, for engineering, science, medicine, and math majors
But that wouldn't do anything to enhance the Big Boyz chokehold on power, NOW WOULD IT!
Enjoy the ride, folks! We're cranking things to "11" now for sure, don't fret about the deficit and debt and monetization-- GRAVITY and MATH will "solve" those problems!
that's a fair idea, but I think this gravity you mentioned is going to work against you pretty hard about time you hit western Nebraska. For Cali at least, wouldn't it be easier to come south from the columbia?
That, or piss on the bait fish and start using the damn system that's already built. hippies are what's causing the logjam, the one that's stopping the waters. Get some haligans and pikes and we can clear it.
You may be right, but the San Gabriel Mountains are no joke either, and they managed to cross that for the L.A. system.
One idea would be to use massive electric pumps powered by some combination of desert solar arrays/natural gas/Powder River Basin coal to move the water up the slopes, then get some percentage of that potential energy back via turbines catching the water going down the slopes. That is, if we avoid using nukes (which could be nifty if they burned some of the waste lying around the country, and Harry Reid didn't have a fit).
The concept is, if we're going to blow a trillion a year in deficit spending, let's do it in style. Breaking the power of the Pacific Northwest hippies may prove to be a harder challenge than moving water 2/3 of the way across the continent.
*FED: RATES TO STAY EXCEPTIONALLY LOW WITH JOBLESS ABOVE 6.5%
So as people continue to drop out of the workforce, the unemployment rate will drift artificially lower. So will the labor participation rate and tax receipts. Budget deficits will continue to soar because no meaningful cuts will ever be made. The FED will pick that point in time to raise rates, just because the B(L)S unemployment number hits 6.5%. I'm going to hold you to that, Bernank. Do it.
should be good for a one or two day stock ramp
So far, a snoozer.
Pretty amazing....this 85 Billion a month will be 185 billion a month next year....just to cover Obamas new spending....and add in all the welfare rats....its up up and away.....no stopping now...they can´t...interest rates will never go up for the next 10 years....and the Fed will be the buyer of all our debt...tomorrows action should be interesting....if I was a foreigner would I buy our long term treasuries tomorrow....NOT....
These fucksticks can't buy shit because they didn't make shit. But, for the sake of argument, I can't wait to see how they unwind 4 trillion dollars of 'assets'.
"they" won´t..."they" won´t be around either....it will be someone else...or something...or never as it crashes...
Whose your daddy?
Strange really, the Fed is the S&P's bitch.
Iv'e got an unsubed stafford loan @ 6.8%. I don't have to pay any principle for another 3.5 yrs. I think I'll buy a butt load of silver each semester.
Pumping for the Crash that is coming.. Sell it NOW>
Pumping for the Crash that is coming.. Sell it NOW> FED IS IN PANIC MODE>
so thats about the entire annual deficit now, direct funding of govt spending via the press.....
congress can go home...O will unilateraly raise the debt ceiling...no spending cuts or tax increases needed, benny just found another bottle of jack.
...sell the news, half lifes of impact are decreasing a a geometric pace...
Merry QE you filthy animals.
In other news; Bunga-Bunga Berlusconi offers his support to Monti if he were to run a "moderate" coalition.
http://www.reuters.com/article/2012/12/12/us-italy-vote-berlusconi-idUSB...
what a robust and growing economy we must have!
Someone can be out of work and not be counted as jobless and I suppose someone looking fir a job could just kill themselves to effect a reduction in the jobless rate.
This will be interesting. With Labor manipualting the statistics to get NFPR numbers DOWN, will the Primary dealers now pressure the rate to stay higher?
No need.
The layoffs that are already starting will do the job quite nicely.
I read an article in our local paper about how the NHL lockout is severely hampering local economies, leading to layoffs and reduced income at businesses. Don't think that isn't having a massive impact on small-market cities such as my dumb town (Pittsburgh), Columbus, Nashville, Winnipeg, Tampa Bay, et al.
Larger cities are being impacted, I'm sure. But the micro affects the macro much more in smaller markets.
i wonder where the fed got the money to expand their balance sheet
+1 Good one. I laughed out loud.
So were looking at mass hysteria!
Is it Dogs and cats living together mass hysteria???
Or is it a 150ft tall staypuff marshmellow man mass hysteria???
Im still fuzzy on the whole Good/Bad thing
My SLW just took off. Thanks ZH for teaching me about the great hedges to protect me from the FOMC!
I am not so sure the USD _shöuld_ go down on this. Maybe it will because the majority would like that, however, since FED will be buying most of the 2013 deficit USD might end up going up instead. The Euro on the other hand is momentarily stronger on this , my take is that this is wrong.
OK, so the FED did what everyone knew they already did....so what?
Keep printing you bearded whore!
so how much do we think it is costing to keep gold in a box, so the peasants don't know the house is on fire?
About $85 billion a month...
Small moves because they already telegraphed this yesterday, and the market demanded it.
Print, bitchez, print!
Sell it.. FOMC Half life decay = 5 Mins. We'll be RED by the afternoon!!
Gold still has not moved to all time highs ->>> Celebrate Bernie madness and buy all the gold you can before the big time rally...!!!
Printing tied to unemplyement below 6.5% = UNLIMITED printing
The Fed should define infrastructure projects, hire the contractors and pay the contractors directly.
Poor efficiency to have Obama pass stimulus bill and have the Fed purchase the bonds. In fact, fire Obama and hire President Bernanke, so I can quit calling him Daddy Bernanke.
Who do you trust?
http://www.youtube.com/watch?v=2JVqUuNZxXA
Only to be faded in T minus...
So...UNDER 6.5% unemployment AND over 2.5% inflation. Is this Infinity 2 or Infinity Squared?
a man of his intelligence cannot truly believe this move will work long term, ergo this is either hail mary desperation or overt politicization of fiscal policy ultimately designed to collapse the system. next he'll monetize the student debt bubble and beg bric countries to eat it for .001 on the dollar.
Tuna cans got smaller again. Fucking things will be the size of quarters by 2014. Cookies are already the size of quarters, some hamburgers are the size of quarters. Only 5 oz park silver quarters are the size of old cookies.
This is actually pretty bold, even if it is expected. I wonder what the half life on this will be? It no longer moves the equities market, but supports it - wonder if the support starts to erode next.
The weakness is not the stocks but in the bonds (which he needs to buy to support).
Long Silver and Gold and Short Treasuries bitchez.
http://www.youtube.com/watch?v=-D50bjRjwHc
I am wondering if this has implications for the "fiscal cliff"? Will Congress and 0bama now suddenly come to an "agreement" for the terms here, now that all this extra money is being printed?
Or, I suppose that maybe this is just an attempt to goose the markets, because they have prior knowledge that we will in fact "go over" the fiscal cliff... they need extra QE to soften the landing.
fed: "do you, interest, take unemployment as your wife, to loot, plunder, and cherrypick, qe4ever and ever, til debt do you part?"
zirp: "uh, no f-"
fed: "unemployment, same question, names reversed?"
unemployment: "jello."
fed: "what god has shorted, let no man put in stoploss. by the power usurped by me and the Federally United Continental Kingdoms of Earthly Domains LLC, i now pronounce you back and knife. you may jump the shark."
This move signals the top in the US Treasury markets.
ALEC, the FOMC, and the US Chamber of Commerce are 3 of the most biggest, traitor laden corporate entities that threaten America today.
They committed an all out corporate assault on free markets, labor, and "laws", for the last 30 years.
To 40 more years of nominal growth!
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