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Stocks And Bonds Disagree With "Reportedly Dovish" Statement, Dollar Spikes
While the talking heads are desparate to maintain the myth that this statement is dovish, the fact is, the flow of free money from the Fed is slowing and confusion of the outlooks for growth (and more Fed member see rate hikes in 2015) means Yellen's dovishness is being questioned aggressively by the bond and stock markets. The S&P 500 fell 12 points. Treasuries are getting clubbed with major short-dated selling (and bear-flattening). The dollar is surging and gold is down modestly.
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Gee, gold got smacked down? No way. Who could possibly have seen THAT coming?
3 days in a row. Expect China to load the slow boat.
Gold, the anti-fiat, is down. Treasuries, the ultimate fiat, are down. Yes, a lot of confusion out there.
Wonder what state of mind those Belgium peeps are in? Boy do they love fiat.
12 points! Beware of falling bankers.
Everyone did ask them to jump.
Stock < Flow bitchez
Never forget it. Ever.
Fed CAN NOT STOP TAPERING (ask Jeremy Stein why - the unwind of their existing 4.2 trillion balance sheet is already A CRISIS IN WAITING).
See ya' around.
The Fed will never unwind. The crap they have on their balance sheet will be turned into zero coupon, undated bits of paper.
And as for the Fed raising rates? Not in my lifetime.
Should the bond market insist (as the 5yr shows) for higher rates. Look out Japan. Boom! FED, soon thereafter. This can get scary fast.
The FED has just doomed pension plans across the planet to implosion with ZIRP.
Why not stop tapering when you have all those rich Belgiums buying hundreds of billions worth of T-Bills? Soon the Portugese will get jelous and start buying billions themselves. Now where is that sarc button...had it laying around here somewhere...
~sooner rather than later the USS`FRB will have to port...
but, when that day comes... so far, far out at sea
with golden-rocks exchanged for a seafaring paper`ballast long-ago, the slightest of monetary whims will scissor its timbers to shivers... me thinks
this fractional'mast... this splinter'd balsa owed to a ole`paper`mache, and a bankrupt rudderless too
into the debt of a non-fictional atlantis,... where even utopian's gnash naught their teeth on the greatest ponzi'ian floatilla
darest a gnarled`knot be yarn'd... a fiat wagging the wavery sea-tale of a tidaless sea
where the gordian drown'd faustian captain `binji'man, now entangled in the occtopus red ink golden`sach tentacles
and his cabin boy `yellen mutiny... thars shoals on the star`board
anchored to the depression below, a squally eighteen-trillion fathoms below
the keynesian wetdream, felt once moar a fraudian`reality of mankinds despair
were it never told by a plato
milleniums,... algoes' ~
a little homour :-))
Stocks dropped? BULLISH!
+ China, bitchez (Minsky)
Is that Woody Allen speaking on streaming Bloomberg? Sounds EXACTLY like Woody Allen.
More hand waving. Stocks don't matter. Gold don't matter. Bonds don't matter.
Oil recrossed above $100 a while ago.
That matters.
1, Nobody who knows anything thinks this is dovish.
2. "Gold is down modestly (?)" Thanks for the laugh...
Has there been a bigger Ponzi than the Fed in the history of this world?
Stocks will be green by the end of this day. Forward.
The first move post-Fed is usually wrong. Unless the first move was actually a pre-first move, and the first move is up.
Opposite of what Econ 101 taught me....strange...
Wait. So you cant just print counterfeit money to make all your troubles go away??
Well, well. Seems I'm going to have to rethink my paulkrugmanisagenius.com subscription.
skynet has gone full retard
Has there been a Fed announcement anytime in recent history where gold wasn't trashed?
The event is over. Fade everything.
Belgium just lost a fortune on those new treasuries
You think they really bought 200 billion worth? Where is that deed to a certain bridge in Brooklyn I have for sale...
I'll take that bridge. In return, I'll pledge the Golden Gate Bridge as collateral.
you should sell derivatives based on that deal
I will, but first I'm going to pull out mortgages on both bridges, then purchase some CDSs on the deals.
Put me down for a million Ukranian-Rubles
First rate hike will occur on January 14th, 2015 if the Fed can actually manage to hold off that long, which I knid of doubt. Could see a hike in the fall if geo political events get out of hand.
http://www.finviz.com/futures_charts.ashx?t=ES&p=w1
What could possibly go wrong?
Around August/September of 2011 was the last time there was a significant meta-market event.
Buy today's dip, tomorrow new highs.
Show me your trade order for how much stawks you bought.
Fed's policy is intrpreted as "easy" -> sell gold
Fed's policy is interpreted as "tightening" -> sell gold
Heads we win, Tails you lose. Rinse and repeat.
No one gives a shit about rates, it's a more free money or die world from here on out.
Why did the yield increase? Did people interpret the impending crash as risk-on?
QE increases the USD nominal price of stocks and bonds.
Now envision a scenario in which QE slows or reverses.
The interest rate rises to 10%, some stuff happens, world war 3, debt is forgiven.