This page has been archived and commenting is disabled.
Fed Tapers $10 Billion, Says Economy, Consumer Demand "Picked Up"
Despite dismal data (or the potential for great escape velocity is around the corner data), major event risks, and a Treasury market that just won't buy the dream of recovery that they are selling; the Fed stuck to its tapering guns... with a consensus $10bn taper...
- *FED TAPERS BOND BUYING TO $45 BLN MONTHLY PACE FROM $55 BLN
- *FED: ECONOMY PICKED UP, CONSUMER DEMAND RISING `MORE QUICKLY'
Shifting from "the economy slowed due to weather..." to "consumer spending is rising more quickly" the Fed is in full consensus "everything's gonna be alright " mode. This leaves the Fed buying $25bn a month of Treasuries and $20bn of MBS each month and facing the tough reality that their trillions did not generate enough momentum in the US economy to overcome some snow.
Perhaps more curiously, Kocherlakota did not dissent this time around. Looks like continued tapering is no longer hawkish unlike... continued tapering?
Pre-FOMC: S&P Futs 1874, 10Y 2.66%, EURUSD 1.3865, Gold $1295
Here is the Fed blaming, what else, the weather:
Information received since the Federal Open Market Committee met in March indicates that growth in economic activity has picked up recently, after having slowed sharply during the winter in part because of adverse weather conditions
And here is the full redline comparison:
»
- 12690 reads
- Printer-friendly version
- Send to friend
- advertisements -
they lyin...
STOCK MARKET BLAST OFF! The economy is "picking up" Wow, great! Everybody is buying Teslas and iPads and drinking Starbucks. Nuttin to worry about, cuz Aunt Yellen said so.
Churn baby churn
#rigged
So wait, how are they going to unload that balance sheet?? Oh yeah! MYRA, MYRA....
Tyler Faster Cowboy then Hilthenrath?
No Way
There's your emergency meeting, lie about GDP.
SURE!!!
FREE Money Fiats For The politcos $ Billionares ...Van Gogh Paintings @ $1/2 Billion...
And NOTHING For The Middle Classes...
Keep On Going Bitchezzzzzzzz...
Where they aren't tapering is their bond buying through Belgium:
http://www.zerohedge.com/news/2014-03-18/meet-brand-new-and-shocking-third-largest-holder-us-treasurys
EUR/USD isn't buying the story..
true dat.
And it is clearly a fantasy that Belgium is covering only the $10B/month delta. From the US Treasury's MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES report, here is Belgium's UST holdings from August 2013:
Aug=166.8Sept=172.5
Oct=180.3
Nov=200.6
Dec=256.8
Jan=310.3
Feb=341.2
Monthly deltas from August: $6B, $8B, $20B, $56B, $54B, $30B.
So if the Fed says it will be cutting bond purchases from $30B to $25B, Fed + Belgium = somewhere between $55B and $85B.
Hardly a taper. Not even sleight of hand.
More like "Who are you going to believe, me or your own eyes?" (Harpo Marx)
Treasury data can be found here: http://www.treasury.gov/ticdata/Publish/mfh.txt
W-
They were debating whether to turn the lie dial to eleven. It does go to eleven.
Recovery Summer rolls on.
#riggedwithexplosives
Going to bet the off camera meeting was about the CapEx & forward looking Friday unemployment numbers. Yields are not changed, risk on products are sitting quiet. April I think is going to be on the books as one of the worst on record, which should set up for an interesting May, when Buysides start playing musical chairs.
Sucks to be a biotech or tech prop trader right now. Of course, gold and old economy desks are still in the gallows, so not much to be smug about.
Liquidity is going to be tight I suspect on this news.
PPS: Rick on CNBC needs to take some ludes, he's going to talk himself off a job.
*FED TAPERS BOND BUYING TO $45 BLN MONTHLY PACE FROM $55 BLN
*FED SEES BELGIUM TREND OF INCREASING BOND PURCHASES BY $10 BLN/MO ON TRACK
*FED SAYS BELGIUM DATA IS TRANSIENT AND OPEN TO MISINTERPRETATION
We had a closed door meeting yesterday. Statement pretty much the same except for consumer spending? Where?
Something is wrong bigtime, their scared.
When in doubt, shut the hell up.. Throw hands in air an say errythang awight!
spot on
How are the unemployed and underemployed buying shit? I suppose the government proved that they can force you to buy anything, but I don't remember anything about cheap consumer goods.
Yard sale business is doing GREAT! Someone's junk is someone's treasure!
one man's junk is another woman's treasure
FIFY
today they will struggle to keep equities flat, tomorrow will be blast off as it is the 1st day of a new month as usual and the ironic day after a fed announcement.
Belgium will make up for it.
bingo.
they need to make it seem as though it's spread around. Eventually, myRA.
Fucking hilarious!
@Headbanger
Wow. GDP print of basically zero and the FOMC statement says economy "picked up." If this doesn't expose the Fed for the wealth-sucking, leach fools that they are, nothing ever will.
No they're more like a bunch of drunk kindergarten kids playing "bank" and making shit up.
Ooops... I apologize to drunk kindergarten kids playing "bank"
I'm looking a little like your avatar right now. This horseshit and, a friend of mine just got a 1 (one) % pay increase after a year. Smack! *bitch-slap*
they raised him from $8/hour to $8.08/hour? wow! despite the increased cost of Obamacare? wow wow!
Easy to taper MBS when that pool is almost empty. No new MBS to be had.
That's a very good point. Unloading those MBS is an entirely different matter. I guess ZIRP will continue to float the stock market.
not to worry, Fannie and Freddie will need another bailout very soon. It's already in the works.
They'll find other bad 'assets' to launder.
"Consumer spending rising more quickly"
I think that is called inflation!!
i don't eat or use energy so i'm not affected
The fed can always electronically create money and send it straight to the SNAP cards.
I really don't see the problem here....
S/
Where is our freaking Guidance?
No shit! At least give me some blue dots for fuck sakes.
Too dangerous!
ha ha, yep the economy "picked up" alright. Picked up and left.
Top 20% are fine, bottom 80% are serfs.
That is just so fockin' funny. I wonder how much time and money went into "It's the weather".
bonds still bid - http://hedge.ly/VwhYtB
Where is Jon Corzine?
jon is waiting for the FOMC release so he can watch the market fall a few microseconds and then skyrocket....like the last 200 times.
this one's the best because it was a surprise.
smells like central planning.
Jon Corzine is fed to a fucking tiger:
http://fedtoatiger.blogspot.com/2014/04/jon-corzine-is-fed-to-tiger.html
I hope he reads that some day I really do. I'll get a letter from his lawyer or some shit, which I will print, frame and sell on EBay for $50 a piece.
Bring your crap, Corzine. I'll feed to a mutherfucking tree chipper you mutherfucking whore.
I am in awe of you, sir...
I stand on the shoulders of giants ...
... really angry giants with great big axes.
Until he reappears, I believe he was aboard flight MH370 which is never to be found ever again, like never.
Latest news on that story is the plane lies perhaps on the bottom of the Bay of Bengal which is nowhere near Australia of course.
Don't Worry......
Be Angry!
Yes worry and be angry
Thanks, now I have that damn song in head, only with "just worry. Be angry" for lyrics.
Wow, they are just making shit up and not even being clever about it. Consumer spending up my ass.
It probably is up.
On gasoline.
Economy picked up? We just printed a negative GDP when you take out the intangibles you dumb fucks.
i think they meant they're trying to pick up the pieces
I think they mean the card game, '52 Pickup. Remember that one?
That ass, that ass, I want to stick my nose in that ass. +1
We are living in a surreal world now.
I guess this is what we get with no adults in charge.
Just lying right in the open. This has been going on for a few years now, it's past surreal.
Picked up Hepatitis C from what I can tell. Turning yellow and then to red.
Well, the ugly part is Q1 extended to March and about half of it didn't have cold weather.
But . . . all of it had pretty much $100+ oil.
They will never stop pretending it doesn't depend on oil.
Bullish!
The Belgians have it covered...
But how many words??? Did I win the autograpehed coffee cup???
They had me at "Information..."
Markets don't know which way to go.
confusion!
Cloward-Piven perhaps? Seems eerily similar along many fronts as of late.
Taper my ass. Just for public consumption. "Belgium" will pick up the slack
You beat me to the punch by a minute... :)
Now they have to jack up the market to show it's positive.
CONSUMER DEMEND for help RISING MORE QUICKLY
Cool, makes it a little harder to make the taper the taper argument we are going to hear over and over. Nah, who am I kidding
They aren't "tapering" anything. It's all smoke and mirrors and a shell game.
I'm sure Belgium is picking up the slack as we speak. LOL...what bullshit.
Nice ending sentence. LOL.
it's all fun and games til someone pokes an eye out.
Fed more likely increased bond buying to around $150 billion a month.
They are probably already buying at that rate, it's just not in any way you can point to or they have to admit.
The amount of money evaporating from the system these days must be around $500B a month -- in the US alone.
fixed it.
"Everythings gonna be all right" must be the U.S. version of "Please, do not worry."
ZIRP forever - and if the equities casino tanks - QE ramped back up.
No markets, just chips on green felt and the rattle of dice.
Economy has reached escape velocity...growth at 3-4% for the year....the trend is your friend....no more stimulus needed....BTFD
TAPERING is TIGHTENING!!!!!!!!!!!!!!! They're draining the swamp...be careful out there
https://www.dropbox.com/s/evgy5802kxnhyk9/Swamp.jpg
They are trying to switch to war mode now. Reality will be swiched off permanantly. Gravity is still on though.
yup yup
it's getting too weird to be an accident any more.
makin my charts look ugly
Charting.
wow that's so 1995 ...
Down the chute goes gold and silver along with the USD. All I am sure of is that the markets are not rigged.
They will prop it up today. Look for a sell off tomorrow. At this rate silver will be at zero by July. Mission accomplished Janet.
If silver went to zero, I sure could stock up on a shitload.
All is well now. www.dailyjobcuts.com
So Brussels will be showing an additional $10bn in treasury holdings?
grand so, now, can we get back to talkin about that aul fella who owns a sports team,
Last night I dreamed it was 1974. I bought a car for $500 that ran for a couple of years. I could work for a month and take a few weeks off. Rent was $285
You just brought back the same memories for me and during the same era. One could buy really cheap cars, no seat belts, no pollution equipment, no smog checks and gasoline was cheap as hell, until Carter anyway. As you say, rent was cheap and one could take plenty of time off if not in a serious career path. Just a lot less pressure all the way around.
Righty hoe, send in the fucking clowns for Dogs sake.
These fuckers must be bricking it, making things up and speculating on innuendo, and the continuing robbery of the populace.
This has passed the point of surreal. This is fucking ludicrous.
:-)
They need to buy 1/2 a trillion a year so the US can pay interest on the 17.5 trillion debt. If they go any lower, they are simply lying about money creation--Which I am pretty sure they already are. QE was just a public face on an existing hidden process that has been around for decades. There is no reason for them to tell anyone the truth as long as bankers still get the money.
The Fed is trapped. They either hyperinflate and gold goes really, really high, or they admit insolvency.
Verily I tell you that even in our so called digital, information age, that humans are basically clueless, greedy primates who all look in the mirror and see an adonis, and want endless free money and entertainment.
How do I know this? I'm a physician and every one of my patients with advanced organ failure thinks they will live forever. A few admit they won't, but their family members always swoop in and convince everybody to go for more and more treatment. And the businesses that control the hospitals encourage it, because they get to bill the insurance companies more and make more money for the executive board.
And the cost is passed to all of you relatively healthy people out there who face endlessly increasing premiums to the point of bankruptcy. Rinse and repeat, to infinity.
Yeah, humans are basically monkies with shoes. Us included.
You mean I'm not going to live forever?
As your patient, I'd ask you how long do I have? Upon your answer, I'd leave your office and have a nice life until that last day. You wouldn't see me again. What's the point? We all have to die some day. Knowing the time frame somewhat can really clear the mind to focus on what's important in those last days, weeks or months ahead.
I have a ticking time bomb inside me and it can go really slow or it can come quick out of nowhere. There's no cure and treatments are either invasive (surgery) or really mess up the body. I do go for regular checkups but I'm not hysterical. If it was in the last stages, I'd just leave it alone.
The inevitable is near for everyone. Considering how long it took for life to establish on this planet, I think the time is all relative. But knowing and understanding that fully, allows me to cherish every second with my kids and not sweat about the future all that much.
I would go for the opium and skiip the treatment. I'll have my kid role me on the boat and let me get pulled over by a monster salmon never to be seen again.
America's Consumers Are Dropping, Not Shopping
27 April 2014, by David Stockman via Contra Corner blog,(Zero Hedge)
http://www.zerohedge.com/news/2014-04-27/americas-consumers-are-dropping-not-shopping
Please put silver on sale. I am going boating. Protection, I mean insurance, all paid up.
Still trying to be like the lillies of the field.
White and Yellen, not quite right and never jellin.
0.1% growth + less funny money = market up. Seems about right
"Alright I am going to level with you all, the most important thing now is that you remain calm, there is no reason to Panic. Now, it is true that one of the crew members is ill... slightly ill. But the other two pilots... they're just fine. They're at the controls flying the plane."
http://www.youtube.com/watch?v=2sVdXg0aYYw
"everyone stay calm"
Means everyone immediately panics.
When my biz slows, the economy tanks - always, every time, 100%. Biz has been slow this year - staying busy by decreasing fees and grabbing everything I get a shot at.
Time to short yet?
Yes, definitely.
The worst would be after years of being bearish, going crazy day by day about the "markets" and then to see the Nasdaq tank -30% overnight or within half and hour and not have any short positions. Then you can tell everybody you saw it coming... Don't wanna go there, to be honest...
they've just reduced the squeeze trigger again by $10 billion ... something to consider
markets may stay where they're at but more and more individual stocks are falling already
less funny money a month means less money to support all the balls in the air
http://apnews.myway.com/article/20140430/us-economy-gdp-09b1567225.html
shouldn't "tapering" be what they call it when the Fed actually starts to sell all the shit they've monetized and get that shit off their books?
I mean even if we're supposed to believe they're "ONLY" monetizing 45 fucking Billion a month now, (which I don't believe that for one minute and think they're still probably near 100 Billion a month, but what do the sheep care, right?) it's still 45 fucking Billion a month, right???
That was never okay to do 5 years ago, so what the fuck are we supposed to do, applaud these fucking sociopathic scumbags for all this bullshit while they rape and pilage not just America but the entire world???? Fuck that.
Seriously, who or what is supposed to buy that shit from the Fed at some point in the future, huh? What are they going to do with all that shit they're buying? Does it get hauled off into space after all this is overwith and nobody is liable for it?
Are Paul Krugman's fucking aliens going to show up with a bag full of Trillion dollar platinum rounds and buy it all up just to save our asses???
What's the outcome with all of this? They're never going to be able to stop doing this and if they're aren't really printing 100 Billion a month still right now I'll damn well bet they'll be doing it overtly in the future and then this whole fucking house of cards goes up in flames.
Well fuck....at least silver phyzz is still on sale again today. Go get you some, kidz. 20 or 40 or 60 or 80...grab a nice tall shiny pile of awesome silveryness now while you can still get it at rock-bottom all-time lows. The most undervalued commodity in history won't be this cheap and easy to get in the not-too-distant future after the SHTF and TEOTWAWKI jumps up and kicks us all in the teeth.
PM's, guns, ammo, food, medical supplies, water treatment, fuel, generator, camping, fishing, hunting supplies, all season clothing, etc. etc. etc.
I have absolutely no faith in any outcome other than the worst thing we could imagine just short of a massive global nuclear war...and even that's starting to look plausible the way all this other shit is going. If they don't go full-retard nuclear style then I hope I'm ready for anything else shitty that ends up happening.
But there's no stopping these criminal socipaths at this point. We have no way to stop them from doing whatever it is they're going to do. I think they want to suck us all dry of everything we have and then burn the joint down for the insurance money just like all mafias do it. Cuz that's what this is...a giant mafia screw job from the globalist levels on down, and we're the ones who they plan on leaving stuck holding the empty bag.
I suppose they are praying that by stalling for time the global economy will take off, demand for housing will absolutely soar and THEN they can unload that MBS crap. That has to be the thinking. Akin to religious faith.
Let me guess, the mysterious "Belgium" buyer increased its U.S. Treasury holdings by the same amount...
$4.3 trillion balance sheet is the reason why the FED has to change tack.
$4.3 trillion balance sheet is the reason why the FED is completely trapped and can never go back.
That is exactly the situation cougar. The FED is the bad bank now.
I still remember your rant from a few years ago about them "printing until their eyes bleed". You were spot on brother.
So now they (The FED and their miscreants) are just blatantly claiming things are getting better in the face of the facts---similar to the illusionist at the circus. These fools are desperate! This is being done to deliberately give a false impression. And the morons running the financial markets have obediently followed their lead. Wake up people....You are being led to the slaughter...
ask any Russian who lived during 40 years of centrally planned propaganda and the economy
it was always THE BEST from Pravda and the people just shrugged, exchanged their worthless rubles for Dollars, Deutschmarks, gold and silver and bartertown was booming
this US thing is already collapsing, has been evident for a few years now. Eventually government will turn off the lights because they can't afford to run their show on worthless money.
Credit is like heartbeat. It expands, it contracts. First if flows easily, economy grows (at least it appears so), people feel confident, load up on debt, pledge valuable collateral to secure loans, then credit contracts, economy shinks, loans default, collateral goes to the bank. Then it starts over again. Build confidence, destroy confidence, repeat.
Prior to 2008 the system was squeezing the general consumer. Now it's the fight between the big boys. High magnitude shocks squeeze out the capital and collateral from institutions and municipalities. Hundreds of small banks got absorbed by bigger banks with FDIC blessing. At the corporate level, the wealth-redistribution has gone global.
We are at the end of an era. Peak everything. Changes are coming in every single aspect of existence. While the beasts are devouring eachother, we - the average folks, also have a new toy to play with called the internet. It makes possible things that were never imagined - it makes possible to circumvent most mechanisms of the old paradigm. It makes possible for us to communicate, transact and plan while completely bypassing established power structures. We are the media, we are the banks, we are the government - all of us. While the pyramid is getting obliterated, we're establishing a new foundation, without even realizing it. We are fighting a war and we are winning. It may not be apparent yet, but as the crisis nears the point of singularity, we will come out winners...
... or it'll be WW3, Einstein's sticks and stones, Mad Max bartertown, yadda yadda yadda.
Hope for the best, prepare for the worst.
+1
Don't fall short on putting the blame where blame belongs though. Just see who is always swimming at the top. To suggest this is not by design to create a class of neverending winners and classes of eternal losers leaves your great synopsis incomplete.
JuliaS +10 great comment.
From my own personal economy things aren't picking up. Much slower than last year. Pretty much only buying food and energy at this point. Business is slow.
Seems to me that the Fed is just trying to keep people calm because they lost control a long time ago. This time the rabbit is out and they know it.