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Stocks Soar As "Bad News Is Good News" Idiocy Continues
Jay Powell reminded investors that September is not guaranteed and a dismal ADP print confirmed that there's maybe enough bad news that we get one or two more months of ZIRP... so stocks surge on algo eagerness. Bonds are also rallying and the dollar fading...
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FUBAR
Set printers on stun.....engage.
QE 4! QE 5! QE 6!
YUK YUK YUK YUK..
Duuuhhh!
I have never seen a parabolic function in any market or any commodity not reverse itself - that graph certainly looks it. So.. it gives it about two weeks and it will reverse like the Chinese market did after it went parabolic.
I'm waiting for crApple to rally today...
DavidC
Everything hinges on more money printing as real economy no longer matters.
So stocks soar on hopes for more QE, the heroin of this market for the last 7 years.
A recent article in Forbes titled "You Can Thank Ben Bernanke for 100% of the Stock Market Gains Since 2009" presents data showing that 100% of the equity market gains since January 2009 have occurred during weeks when the Fed purchased Treasury bonds and mortgages
http://www.minyanville.com/business-news/markets/articles/Here2527s-How-...
... 7 years of failed monetary policy; and yet they continue. There is only one rational conclusion: This is not an error in judgement or a failure of economic models. The complete destruction of our capital markets and the theft of assets from prudent savers to them and thier cronies is the very purpose of thier actions. These criminals should be held to account!
Release Date: December 16, 2008
For immediate releaseThe Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1/4 percent.
Since the Committee's last meeting, labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment, and industrial production have declined. Financial markets remain quite strained and credit conditions tight. Overall, the outlook for economic activity has weakened further.
Meanwhile, inflationary pressures have diminished appreciably. In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate further in coming quarters.
The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability. In particular, the Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.
The focus of the Committee's policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve's balance sheet at a high level. As previously announced, over the next few quarters the Federal Reserve will purchase large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets, and it stands ready to expand its purchases of agency debt and mortgage-backed securities as conditions warrant. The Committee is also evaluating the potential benefits of purchasing longer-term Treasury securities. Early next year, the Federal Reserve will also implement the Term Asset-Backed Securities Loan Facility to facilitate the extension of credit to households and small businesses. The Federal Reserve will continue to consider ways of using its balance sheet to further support credit markets and economic activity.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Christine M. Cumming; Elizabeth A. Duke; Richard W. Fisher; Donald L. Kohn; Randall S. Kroszner; Sandra Pianalto; Charles I. Plosser; Gary H. Stern; and Kevin M. Warsh.
In a related action, the Board of Governors unanimously approved a 75-basis-point decrease in the discount rate to 1/2 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York, Cleveland, Richmond, Atlanta, Minneapolis, and San Francisco. The Board also established interest rates on required and excess reserve balances of 1/4 percent.
"The complete destruction of our capital markets and the theft of assets from prudent savers to them and thier cronies is the very purpose of thier actions."
That is THE SOLE PURPOSE of fiat currency,,, printing up fake currency, then sucking up real assets with it.
As an example,,, The Fed owns over a trillion dollars of real estate when saving us from economic collapse by buying up all those bad loans with their little pieces of paper. -actually click money-
Look at Greece. The fiat Euro is devouring an entire country from people who had no say in what their POS government did.
Think we'll be different? lol.
Come on Mr. Yellen, raise them rates!
pods
Let's talk about that.....a lot.
I dare her. janet..I DARE you. You scared Janet?
The ghouls all came from their humble abodes. To get a jolt from my electrodes... [/monster mash, aka frankenstein eCONoME]
The Fed is data-dependent on the economy, but markets are Fed-dependent, but stocks are also a leading economic indicator, and so .... ah, wait a minute ...
A drug addict recognizes reality when he sees it, which is why he craves the drug.
No one who participates in this market really believes it is a "market" anymore. They may argue to the delusion....but they know the truth, and beg for more drug.
Assume until otherwise proved that the ADP numbers (which too get revised) are phoney. The FED relies on even greater baloney, the BLS numbers, which are complete crap.
Anyone who really believes the fed is going to raise rates is an idiot. Ain't happnin
OK moe-ron..
What can the Fed do now?
NOT A FUCKING THING WITHOUT RATES GOING NEGATIVE
So there's your rate hike, like it or not.
BTFG=Buy The Fucking Gartman.
We're pleasantly insane, so we're long tulips and short in rational terms.
Heh-heh. YC, I'm putting the finishing touches on a Beatles "Taxman" parody entitled "Gart-Man" that I think you'll enjoy
Looking forward to seeing it, KCS. ;-)
Huh? Rates to remain steady but "the labor market remains strong"?? We all know the Fed is a den of liars. It's amazing they can maintain a straght face whie believing we're buying their incessant double talk and gobblety gook meant to obfuscate the truth. Don't they know, the only ones they're bullshitting is themselves?? Everyone even knows the accompanying market rally's and commodity ambushes are just part of the big FRN illusion.
Told you it was noise.
All the hand-wringing about the FED raising interest rates is merely a diversion. They can NEVER raise rates unless they want the T-Bond/Bill market to collapse. The rest is noise.
This (equities rise) is such bullshit! Run away . . . . . far away!
ONE DAY I fully expect to read this headline in ZeroHedge ...
"America in a Depression, Food Line For Hungry People In New York Is Ten Miles Long, Dow Surges to 100,000 !!"
HNIC o'dummers power IS OVER 9000!
its good to see the usual, 'buy the fantasy, sell the reality' trade is in full effect with stocks whose valuations are at least 200x earnings are bought, while stocks with positive earnings and 3% or higher dividends are thrown to the curb. gold down, tsla with an estimate to lose, ex-gimmicks, $1.37 share.
the pile onto apple even....while no fan of ishit, they actually make money and have a p/e around 12!.....but sell it and buy more FB who somehow is able to have more 'unique users' than there are people with access to the internet on the planet....math is so 19th century
I'm running out of hot air to keep the balloon in the air says the fed gnome