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Fed Folds: Will Do Open-Ended MBS Buying, Extends Operation Twist

Tyler Durden's picture




 

Bernanke has acquiesced and is now the 4th branch of the status quo- and all is well in the world:

  • *FED TO KEEP POLICY STIMULATIVE FOR `CONSIDERABLE TIME'
  • *FED WILL ADD TO PURCHASES IF LABOR MARKET DOESN'T IMPROVE
  • *FED DOES NOT SAY WHEN MBS PURCHASE PROGRAM TO END
  • *FED TO BUY $40B MBS MONTHLY, CONTINUE `OPERATION TWIST'
  • *FED TO BUY MBS, EXTENDS ZERO-RATE POLICY INTO 2015

To summarize:

  • The good news: The Fed's NEWER, OPEN-ENDED and NEVERENDING QE is bigger, longer, and has a Retina display (however its battery life is far shorter).
  • The bad news: The Fed has now confirmed it is merely a sad, political, self-frontrunning caricature of what a central bank should be.

 

 

Pre-FOMC:

S&P 500 Cash    1437.9
S&P 500 Futures    1437
Dow    13345.43
10Y    1.7247
5Y    0.6522
30Y    2.8815
EUR    1.2895
MBS Spread    0.57993
Gold    1724.35
Silver    32.77
WTI Oil    97.23
USD Index    79.70237
Apple    676.91

Full statement link.

Full redline comparison to the August statement below:

 

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Fri, 09/14/2012 - 00:18 | 2793513 StychoKiller
StychoKiller's picture

Subway® makes a good turkey sub...

Thu, 09/13/2012 - 12:37 | 2790191 eclectic syncretist
eclectic syncretist's picture

sell the news. 

Thu, 09/13/2012 - 12:59 | 2790385 tocointhephrase
tocointhephrase's picture

Good luck with chump fiat!

Thu, 09/13/2012 - 12:37 | 2790193 Conman
Conman's picture

So algos read headline number ignore that the fed already buys MBS?

Thu, 09/13/2012 - 12:38 | 2790197 Shameful
Shameful's picture

Open ended QE, super.  Buying all manner of paper...so when is the war to blame the fallout of QEInfinity?

Thu, 09/13/2012 - 12:38 | 2790198 Inthemix96
Inthemix96's picture

Bernank is an un-refutable, stupid, zionist, jewish, nation destroying cunt.  And to top the fuck off he hasn't a god given clue what the fuck economics means.

If this is the best we have to offer the zionists will win.  Cunts

Thu, 09/13/2012 - 12:47 | 2790283 Inthemix96
Inthemix96's picture

I see NSA are out and about early then.

Go back to bed you stupid fuckers.  Go and see new yorks finest for shooting skills.

You will need them you daft cunts.

Thu, 09/13/2012 - 12:38 | 2790200 MiguelitoRaton
MiguelitoRaton's picture

Bernanke casts his vote early for Obama with more monetary stimulus to artificially inflate the market further.

Thu, 09/13/2012 - 12:46 | 2790281 RSloane
RSloane's picture

That's exactly what he did. All Hail Obama.

Thu, 09/13/2012 - 12:57 | 2790372 Nothing To See Here
Nothing To See Here's picture

Don't go too fast on that. Watch the price at the pump in the coming weeks...

Thu, 09/13/2012 - 13:47 | 2790770 Hohum
Hohum's picture

MiguelitoRation,

Wait, I thought it was all "priced in."

Thu, 09/13/2012 - 12:38 | 2790201 PaperBear
PaperBear's picture

Holy crap, silver went from $32.80 to $33.60 in a flash.

Thu, 09/13/2012 - 12:45 | 2790267 Cathartes Aura
Cathartes Aura's picture

33.91 at the moment. . .

recorded for posterity.

Thu, 09/13/2012 - 13:05 | 2790440 Cathartes Aura
Cathartes Aura's picture

34.12 and rising.

*smiles*

Thu, 09/13/2012 - 13:26 | 2790632 XitSam
XitSam's picture

$34.64

Thu, 09/13/2012 - 13:28 | 2790656 Cathartes Aura
Cathartes Aura's picture

34.71. ^

Thu, 09/13/2012 - 12:39 | 2790203 firstdivision
firstdivision's picture

Ben, put me down for $10MM a month. I accept checks and cash.

Thu, 09/13/2012 - 12:39 | 2790204 helping_friendl...
helping_friendly_book's picture

Baked in. 

 

(Yawn)

zzzzzzzzzzzzzz

Thu, 09/13/2012 - 12:40 | 2790216 firstdivision
firstdivision's picture

Wasn't it more like $60 to $80 per month baked in?

Thu, 09/13/2012 - 12:45 | 2790270 helping_friendl...
helping_friendly_book's picture

That is not even a rounding error at this point.

Thu, 09/13/2012 - 12:41 | 2790208 muppet_master
muppet_master's picture

SELL ON THE QE3 NEWS !!

sell everything, spx @ 1440+, gold @ 1750...everything...

what? is he going to announce QEorganizer #4 after casino crashes a -20% within months? LOL !!!!

come and get them muppets, you can SAFELY (guaranteed) to BUY HIGH !!

this is VERY DIFFERENT than QE1 and QE2..where casino was severely sold off !!! QE3 is severely pumped up = SELL !!!!

Thu, 09/13/2012 - 12:42 | 2790241 muppet_master
muppet_master's picture

also sell

oil @ $97 and and eur @ 1.29...sell everything !!!

Thu, 09/13/2012 - 12:56 | 2790361 walküre
walküre's picture

The pump to this announcement is correct. There was no such pump following the crash of '08 and '09. Strictly from a paper market perspective, one could suspect that this is the setup to offload worthless equities and paper to the muppets.

Thu, 09/13/2012 - 13:00 | 2790397 LoneCapitalist
LoneCapitalist's picture

Is that you mortimer?

Thu, 09/13/2012 - 12:39 | 2790211 Christoph830
Christoph830's picture

Flow, bitchez.  Way to be all over this from the start, Tyler.

Thu, 09/13/2012 - 12:40 | 2790217 TomGa
TomGa's picture

D E S P E R A T I O N.   Ben admits the economy is fucked.

Thu, 09/13/2012 - 12:40 | 2790219 ghostfaceinvestah
ghostfaceinvestah's picture

Desperate act by desperate men.  They have no idea what to do.

Thu, 09/13/2012 - 12:48 | 2790297 NotApplicable
NotApplicable's picture

No way. Every single thing being done to "fix" this mess is their opportunity to fix it to THEIR liking. Not only that, all of these actions have been obviously inevitable, as ZIRP is a one-way street. Simply put, there is NO alternative (Maggie Thatcher's TINA, the hallmark of fuck-ups which create political mandates ("We have to do something!")).

You've got to stop confusing their rhetoric with reality. They are absolutely doing exactly what they've intended for quite some time now. As long as you believe otherwise, you're providing the cover of "ineptitude" for their actions.

They thank you for your service to their cause.

Thu, 09/13/2012 - 13:39 | 2790722 dark pools of soros
dark pools of soros's picture

why do some still assume they have everyone's interests in mind?  They've known exactly what they are doing all along

 

Do cattle also wonder why their owner has no clue on making their living conditions better? Or do they know they are fucked for good?

Thu, 09/13/2012 - 12:41 | 2790221 Meesohaawnee
Meesohaawnee's picture

fuck you bernake. how you sleep at night is beyond my human comprehension. the millions you fuck everyday. god help this country

Thu, 09/13/2012 - 13:15 | 2790533 WakeUpPeeeeeople
WakeUpPeeeeeople's picture

pops an Ambien. Maybe the drug co can build an ad around that.

Thu, 09/13/2012 - 13:19 | 2790567 Oh regional Indian
Oh regional Indian's picture

People with such apparent power are chosen with particular attention paid to their innate, extreme psychopathy.

In addition, they actually believe their lies.

ori

Thu, 09/13/2012 - 13:26 | 2790630 Spastica Rex
Spastica Rex's picture

These folks have an extreme sense of self-worth. It's mind boggling. I've worked for them. Not Bernanke. I guess they're just really good at the Ayn Rand thing.

Thu, 09/13/2012 - 14:36 | 2791159 Uncle Remus
Uncle Remus's picture

The Bard - Sonnet 12

When I do count the clock that tells the time,
And see the brave day sunk in hideous night;
When I behold the violet past prime,
And sable curls all silver'd o'er with white;
When lofty trees I see barren of leaves
Which erst from heat did canopy the herd,
And summer's green all girded up in sheaves
Borne on the bier with white and bristly beard,
Then of thy beauty do I question make,
That thou among the wastes of time must go,
Since sweets and beauties do themselves forsake
And die as fast as they see others grow;
   And nothing 'gainst Time's scythe can make defence
   Save breed, to brave him when he takes thee hence.

 

Translation: Tick tock assholes.

Thu, 09/13/2012 - 12:41 | 2790223 101 years and c...
101 years and counting's picture

in a rational reaction, oil drops on the unlimited money printing.

Thu, 09/13/2012 - 12:41 | 2790226 Wakanda
Wakanda's picture

It's kinda fun (in a perverse way) to watch TPTB dig their own graves as fear grips their limbs and tongues.

Sweat it out Ben, it's quite a show you're putting on.

Thu, 09/13/2012 - 12:52 | 2790335 Confused
Confused's picture

Nothing fun about it. The pain will certainly be felt. But it will be us that feel it first. It will unfortunately be quite some time before these fuckers have to pay for what they've done. If ever.

Thu, 09/13/2012 - 13:27 | 2790639 Spastica Rex
Spastica Rex's picture

Never. Sorry. :(

Thu, 09/13/2012 - 13:15 | 2790540 toomanyfakecons...
toomanyfakeconservatives's picture

Sweat it out indeed. They're all unindicted co-conspirators and uncharged criminals. Obama, Brenanke, Timmy, and hundreds of other top conspirators against the Constitution can simply be placed in handcuffs and orange jumpsuits. The long arm of the law can reach these pencil pushing criminals *sooner rather than later* with MASS ARRESTS... http://tinyurl.com/cd5cyjo/

Thu, 09/13/2012 - 12:41 | 2790227 VonManstein
VonManstein's picture

TSY imploding!

Thu, 09/13/2012 - 12:49 | 2790308 NotApplicable
NotApplicable's picture

And PMs are off to the moon.

Thu, 09/13/2012 - 12:41 | 2790229 RobD
RobD's picture

Hmmm who is that guy that was buying up all that MBS crap a few months ago? Hmmm I think the fund started with a P or somthing?

Thu, 09/13/2012 - 12:41 | 2790230 SDRII
SDRII's picture

Lets see if wee can get rents a little higher, oh wait everyone is going to buy now

Manhattan’s apartment vacancy rate rose in August to its highest level for the month in three years as record-setting rents pushed tenants out of the market in the busiest time for leasing, according to Citi Habitats. The vacancy rate in August, when the greatest number of Manhattan leases are signed, was 1.19 percent, up from 1 percent a year earlier, the brokerage said in a report today. The rate was 0.88 percent in August 2010 and 1.62 percent in 2009.

Thu, 09/13/2012 - 12:41 | 2790231 tawse57
tawse57's picture

Wall Street already whinging that QE4 is too slow in coming. We want QE4 and we want it now!

Freck!

Thu, 09/13/2012 - 12:41 | 2790232 Headbanger
Headbanger's picture

You were right Tyler. This is a clear signal the Fed has run out of room to do much more

stimulus. 

Thu, 09/13/2012 - 12:51 | 2790320 samcontrol
samcontrol's picture

He was not right or wrong cause he said maybe a dozen times, or twelve different individuals said MAYBE a dozen times.

I said no , and i was wrong again. But,,,
Thank me my paper trading is on a roll, just got more reits, pms, and biotechs yes biotechs , shepple do get sick, i like cytx, exel.

Thu, 09/13/2012 - 12:53 | 2790339 samcontrol
samcontrol's picture

He was not right or wrong cause he said maybe a dozen times, or twelve different individuals said MAYBE a dozen times.

I said no , and i was wrong again. But,,,
Thank me my paper trading is on a roll, just got more reits, pms, and biotechs yes biotechs , shepple do get sick, i like cytx, exel.

Thu, 09/13/2012 - 12:56 | 2790352 Beevreetr
Beevreetr's picture

Awww yer such a homo. Try takin the insight found here for your own speculation, to shape your opinion. Hes simply making points for you to ponder..  Where is yer blog w 1000s of readers??....doosh.

Thu, 09/13/2012 - 13:04 | 2790233 devo
devo's picture

Not to backpat but, from yesterday's thread:

They will do something tomorrow. Gut feeling is it will be big. Also, huge move in the PMs around August 16th, when Soros and Paulson bought GLD. Soros didn't like gold a year ago, called it a bubble, now he bought 800,000 shares. Something is up there. Treasury yields are rising daily. The writing is on the wall.

Like Citi, I expect PMs to outperform stocks on the announcement. I think silver could break 40/oz by week's end---it has pent up energy.

I'd say good call, yeah? Only thing is metals aren't spiking as much as I thought...might take a while for the algos to comprehend how ridiculously bullish this is for PMs (and not so much stocks, since nobody wants a house or has the job required to purchase one).

Thu, 09/13/2012 - 12:42 | 2790237 TrustWho
TrustWho's picture

Buy gold, Buy oil, Buy corn, Buy rice, Buy land, Buy Guns, Buy Water

Thu, 09/13/2012 - 12:44 | 2790240 Kaiser Sousa
Kaiser Sousa's picture

la, l,a la, la, la, la, la, 

 

BUY MORE MOTHER FUCKING PHYSICAL SILVER ALL YA'LL BITCHEZ!!!!!!

 

FUCK ALL BANKERS AND THEIR BITCH OWNED POLITICIANS.......

Thu, 09/13/2012 - 12:43 | 2790246 bidaskspread
bidaskspread's picture

Bill Gross = winning

Thu, 09/13/2012 - 12:43 | 2790249 Cassandra Syndrome
Cassandra Syndrome's picture

But, but, but.......

Thu, 09/13/2012 - 12:44 | 2790255 rosiescenario
rosiescenario's picture

Hi Ho Silver....and away.....(for the old timers)

 

 

Thu, 09/13/2012 - 12:44 | 2790256 czarangelus
czarangelus's picture

I can't fucking believe it. That cocksucker! Doesn't he realize we're paying $4.55/gal for gas in NorCal already? Just how far does he think he can push the average American to save his Wall St. butt pirate buddies?

Thu, 09/13/2012 - 12:47 | 2790287 Jason T
Jason T's picture

Lets' not get all Rudy Von Havenstein on him now..

Thu, 09/13/2012 - 12:47 | 2790288 icanhasbailout
icanhasbailout's picture

Ben is too arrogant to perceive a limit of decency, and his handlers have no problem if he gets Ambassador Stevensed by the rubes in due time.

Thu, 09/13/2012 - 12:51 | 2790318 Cathartes Aura
Cathartes Aura's picture

". . .over the cliff." is an oft heard whisper. . .

Thu, 09/13/2012 - 12:54 | 2790347 Meesohaawnee
Meesohaawnee's picture

they no were to passive as a society. we have no resolve to do anything about it. they know that. If they pulled this in the mid east it would be a different story.

Thu, 09/13/2012 - 13:24 | 2790621 thomasincincy
thomasincincy's picture

The problem isn't the price of gas, oh no...it's the NEED to own a car for the average person or family. Also, many major cities throughout the US have been declining in population for the last 50-60 years and this is probably the leading driver behind the muni problem. There is a reason why you build cities... mucho problemo coming

Thu, 09/13/2012 - 12:44 | 2790258 PaperBear
PaperBear's picture

If only you can hear my maniacal laughing right now.

Thu, 09/13/2012 - 12:44 | 2790263 spartan117
spartan117's picture

But Graham Summers told us there would be no more QE.  WTF?  I want my money back, Graham!

Thu, 09/13/2012 - 13:32 | 2790685 XitSam
XitSam's picture

Just waiting for that slimy hagfish to break the surface so I can club him with a oar.

Thu, 09/13/2012 - 12:46 | 2790272 time2blowitup
time2blowitup's picture

lol at the headline "Fed Folds".. shocking!! Next thing you'll tell me is.. "Chris Christie folds and supersizes his value meal!!" 

Thu, 09/13/2012 - 12:46 | 2790273 icanhasbailout
icanhasbailout's picture

price-fixing cartel intervenes again to prevent housing prices from reaching market equilibrium

Thu, 09/13/2012 - 13:05 | 2790442 toomanyfakecons...
toomanyfakeconservatives's picture

...via massive should-be-illegal purchases of toxic paper.

Thu, 09/13/2012 - 12:56 | 2790277 hedgehog9999
hedgehog9999's picture

Now we are guaranteed the US economy will buckle as OIL,commodities and food prices soar in price over the next 6 months to infinity.

Unemployment will rise and the stock market will come down in due course when the effects of this decision are apparent......

This is in fact a statement to the effect they caved in and fired their last bullet (which is all they can do) acknowledging the economy is fucked and nothing they've done has worked.

(they did say, "in the context of price stability")

so we'll see about that.

Thu, 09/13/2012 - 13:13 | 2790522 DavidC
DavidC's picture

I'm reminded of the mail I received when I first created a user ID for ZH - 'Now you've done it'!

DavidC

Thu, 09/13/2012 - 12:46 | 2790280 pragmatic hobo
pragmatic hobo's picture

, ... and another bubble is nearing blow-off top stage.

Thu, 09/13/2012 - 12:46 | 2790282 Freewheelin Franklin
Freewheelin Franklin's picture

I think the Brooklyn Bridge is for sale, Mr Bernanke.

Thu, 09/13/2012 - 12:50 | 2790285 Yen Cross
Yen Cross's picture

  The "diabetic" just uped it's insulin dose! That is about all I got out of this announcement.  When the dust settles I'm going to sell this b/s!

   The sheer vague-ness of the Fed., just shows how limited it is. The Fed. only has " rumors and threats" left in it's arsenal.

Thu, 09/13/2012 - 13:27 | 2790649 GoinFawr
Thu, 09/13/2012 - 12:48 | 2790294 morning_glory
morning_glory's picture

Looks like I picked the wrong week to quit sniffing glue.

Thu, 09/13/2012 - 13:08 | 2790481 ParkAveFlasher
ParkAveFlasher's picture

Need a hotkey for that one too ... ZH needs a special edition keyboard!!!

Thu, 09/13/2012 - 12:48 | 2790295 PaperBear
PaperBear's picture

Long live the wall paper, I don't think the FRN is suitable as toilet paper.

Thu, 09/13/2012 - 13:59 | 2790859 GoinFawr
GoinFawr's picture

Didn't Spock say something like that,

"Live long, and paper" (?)

Thu, 09/13/2012 - 15:04 | 2791379 Shitters_Full
Shitters_Full's picture

No, that was Mr. Whipple.

Thu, 09/13/2012 - 12:48 | 2790299 Freewheelin Franklin
Freewheelin Franklin's picture

"They don't know what to do....and they don't want to admit it"

- David Kotok

Interesting commentary.

http://video.cnbc.com/gallery/?video=3000114117

Thu, 09/13/2012 - 12:49 | 2790309 dynomutt
dynomutt's picture

http://www.youtube.com/watch?v=H7_pX_raPHs

The reaction of the market was immediate.

Thu, 09/13/2012 - 13:01 | 2790405 toomanyfakecons...
toomanyfakeconservatives's picture

Talk about the nuclear option! Anyone caught dealing in mortgage-backed securities should be arrested and led off to jail as part of the MASS ARRESTS... http://tinyurl.com/cd5cyjo/

Thu, 09/13/2012 - 12:50 | 2790313 DollarMenu
DollarMenu's picture

ZIRP until 2015 - they know it's over.

Thu, 09/13/2012 - 12:50 | 2790314 walküre
walküre's picture

FIAT is officially worthless.

Miners striking. Arabs revolting.

Wait for farmers to say "fuck it" and keep their products in the barns and in storage. Selling only in exchange for anything BUT FIAT.

It's done. Over. Aus und vorbei.

Keep the paper. Keep all of it. I don't want it.

Thu, 09/13/2012 - 12:50 | 2790317 adr
adr's picture

The charts can't even keep up, or is it that the vertical line doesn't show up. Apple above 680, the rest of the monkey stocks driving higher and higher.

This round of QE is the last ditch effort to get retail into the market to hold the bag.

 

IF YOU MISSED APPLE GOING FROM $400 to $680, HERE IS YOUR CHANCE TO RIDE THE WAVE TO $1000!!!!!

HOLD THE BAG FOR GOLDMAN!!!!!

Thu, 09/13/2012 - 12:51 | 2790327 alagon
alagon's picture

Abolish that goddamn jewish temple already.

Thu, 09/13/2012 - 12:51 | 2790329 Archetype
Archetype's picture

Probably just about enough stimulus to keep the stock markets at the same place for the algos to scam whoever still trades this crap. I got to find a job...

Thu, 09/13/2012 - 12:53 | 2790330 Archetype
Archetype's picture

Sorry, doubble post.

Thu, 09/13/2012 - 12:55 | 2790359 samcontrol
samcontrol's picture

How about goldmining in Alaska?

Thu, 09/13/2012 - 12:51 | 2790333 caimen garou
caimen garou's picture

NEWS ALERT! Hospitals in new york city have E R's full of fat finger injuries as monkeys pushing buttons at all time high! more to follow......

Thu, 09/13/2012 - 12:54 | 2790342 Fix It Again Timmy
Fix It Again Timmy's picture

Happy Days are here again.... the Feds Open Market Operations----

http://www.youtube.com/watch?v=szwclmmKwLg

 

Thu, 09/13/2012 - 12:54 | 2790343 in the dark
in the dark's picture

Was it good for you?

 

... got a cigarette?

Thu, 09/13/2012 - 12:54 | 2790344 in the dark
in the dark's picture

Was it good for you?

 

... got a cigarette?

Thu, 09/13/2012 - 13:07 | 2790345 magpie
magpie's picture

Still strange though that most European markets didn't frontrun the decision...and oil jammed down.

*some lowlevel shills should stop having nervous breakdowns online - leaves a bad impression on the Eastern Europeans and the ex-Giyus folks...

Thu, 09/13/2012 - 12:55 | 2790350 JustPrintMoreDuh
JustPrintMoreDuh's picture

So when's the QE4 announcement?

Thu, 09/13/2012 - 12:56 | 2790358 pragmatic hobo
pragmatic hobo's picture

next time spx drops below 1400.

Thu, 09/13/2012 - 13:07 | 2790392 falak pema
falak pema's picture

calling Graham Summers : Is this QE-3?

Calling Slewie the Pirate on same topic, as he said QE3 type fiat bubble was IMPOSSIBLE; "cain't be done!"

Well the Fed outpumped the bubble deleveraging to bubble squared.

Urgent replies appreciated!

 

Thu, 09/13/2012 - 13:01 | 2790400 samcontrol
samcontrol's picture

in a little while in the press conference , in between the lines.

Thu, 09/13/2012 - 13:00 | 2790401 samcontrol
samcontrol's picture

in a little while in the press conference , in between the lines.

Thu, 09/13/2012 - 13:10 | 2790495 resurger
resurger's picture

by the end of October, party on an election year

Thu, 09/13/2012 - 12:56 | 2790353 insanelysane
insanelysane's picture

The patient is perfectly healthy (so says the govt) but we can't risk taking them off of the ventilator. Up the amount of oxygen and we need an infinite amount of whole blood, STAT!

Thu, 09/13/2012 - 12:55 | 2790355 Winston Churchill
Winston Churchill's picture

Alas,poor dollar.

I knew it well........

Thu, 09/13/2012 - 13:05 | 2790441 yogibear
yogibear's picture

Let Japan buy it. Another disaster country with huge debt. A circle-jerk of countries buying each others debts and making the heap larger.

The bigger Bernanke builds the bubble the larger the impact when it pops.

 

 

Thu, 09/13/2012 - 12:56 | 2790360 joshdance
joshdance's picture

I think only about 1% of the people who comment here actually trade for real.  Who would complain about a predictable, free money machine that just keeps on giving?  Wait for the pop, buy 1440 spus on the inevitable retest, and sell 'em back at 47s.  Try actually profiting from this market and you may not be so pissed off all the time.

Thu, 09/13/2012 - 13:04 | 2790436 walküre
walküre's picture

Pray tell what do I exchange these FIAT gains for in the real world?

Prices on everything else actually go up as well so who the fuck cares if SPY is up? It doesn't put one more gallon of diesel in my tractors and it doesn't put one more loaf of bread on the tables of families who NEED TO EAT.

Sure, sit back and relax and make your FIAT gains until the last day. There's nothing left OF VALUE to actually convert it to.

Thu, 09/13/2012 - 13:21 | 2790587 joshdance
joshdance's picture

Right now I can exchange my fiat gains for the same things you can exchange your "real" gains for.  And we'll be in the same boat whatever happens, only I did not waste my time bitching about it, and actually capitalized on it.  I do not "sit back and relax" -- I work just as hard as you do while you sit back and relax on your tractor, while probably assuming a larger risk.  I would wish you a happy day, but I'm probably asking more than you are capable of, so I'll just sign off.

Thu, 09/13/2012 - 13:37 | 2790710 walküre
walküre's picture

There are NO paper gains in ZIRP environment. You're a fool to believe otherwise.

Dude, I'm not hoping for "gains". I merely hope to store that little bit I have safely.

My biggest risk is to be exposed to Shysters like the Bernank.

The fact that I have to work for his worthless paper is killing me.

Thu, 09/13/2012 - 13:15 | 2790539 babylon15
babylon15's picture

You sound like someone who has never traded before.  Bear Stearns said the same thing ("Free Money") about its internal hedge funds, which thought a portfolio of collateral debt obligations and credit default swaps was invincible.  Turns out the folks at Bear Stearns weren't as smart as they thought, and that went south pretty quickly.  And many traders trading Icelandic currency also believed that the kronar carry trade was free money.

Shades of 2007 indeed.

Thu, 09/13/2012 - 13:28 | 2790644 joshdance
joshdance's picture

I am a day trader, and carry no risk of the kind you speak of.  I am but a small mite in the large pool of global capital, so I do not have to unwind huge positions and am not exposed to the same kind of risk that the huge funds are.  2007, 2012--it does not matter to me.  I am small and agile, and if you had ever placed a real trade with real money in your life you would appreciate how ludicrous your statement is and how myopic your view is.

Thu, 09/13/2012 - 13:55 | 2790827 Hohum
Hohum's picture

joshdance,

You're right.  The Fed is quite predictable in that ZIRP is not going away until it is forced to do so.  But I guess some will say everything is unpredictable.  Of course the "some" might be covering up a lack of trading skills.

Thu, 09/13/2012 - 12:56 | 2790364 toomanyfakecons...
toomanyfakeconservatives's picture

Anyone caught dealing in Mortgage Backed Securities at this point in the game should be rubber stamped for jail time when the MASS ARRESTS occur.... http://tinyurl.com/cd5cyjo/

Thu, 09/13/2012 - 12:57 | 2790376 max2205
max2205's picture

Only 500 Billion...what a wimp....

Thu, 09/13/2012 - 12:59 | 2790384 Snakeeyes
Snakeeyes's picture

Bernanke just helped getting Obama re-elected. Mortgage spreads this morning were right -- Bubbles did commit to buy a boatload of MBS.

http://confoundedinterest.wordpress.com/2012/09/13/fed-pulls-the-trigger-with-new-bond-buying-program-40-billion-in-mortgage-backed-securities-per-month/

Thu, 09/13/2012 - 13:01 | 2790386 jtz5
jtz5's picture

"You f**kin' people. You have no idea how to defend a nation. All you did was weaken a country today, Bernanke. That's all you did. You put people's lives in danger. Sweet dreams, son."

Thu, 09/13/2012 - 13:12 | 2790506 optimator
optimator's picture

WRONG!!!!  "they" are defending the nation, and they will defend it to the death of you and I!!

A shame the nation is not the U.S. of A.  

Thu, 09/13/2012 - 12:59 | 2790389 The Count
The Count's picture

I was just watching some fund manager A-hole on CNBC saying how great stocks are and how the FED action is bullish. Hello, if things were that peachy the FED would't have to print ever more money dimweed!

As always, the money will find its way into the market but not into the real economy, making ever more 'stimuli' necessary. Bon voyage suckers.

Thu, 09/13/2012 - 13:01 | 2790390 stant
stant's picture

the primitive relics are going orbital and aint stoping for sh----------------------------^^^^^^^

 

Thu, 09/13/2012 - 13:00 | 2790396 yogibear
yogibear's picture

Best to dump US dollars very soon before the crowd coms in. The Fed is trashing the US dollar with no way of stopping.

Thu, 09/13/2012 - 13:01 | 2790404 NoWayJose
NoWayJose's picture

At least this removes the event risk from the bears.  No more 'good' news will be coming for a while.

Thu, 09/13/2012 - 13:10 | 2790497 tawse57
tawse57's picture

What do you mean by this? Do you mean that now the bulls have got their QE3 there is nothing left to be expected to pump up markets?

I have no idea what this will do - DOW 14,000 by October? Or spectacular crash in the coming weeks when people work out that the global economy is fecked?

I can't see how the DOW can go to new heights, but I have been thinking that for months now.  This is scary for Joe Public retail investors holding on to cash that is being eroded by these policies.

Thu, 09/13/2012 - 13:01 | 2790409 The Count
The Count's picture

Drahgi and Bernanke had an orgasm together, almost.

Thu, 09/13/2012 - 13:01 | 2790410 Nobody For President
Nobody For President's picture

What was Einstien's famous definition of insanity again?

Thu, 09/13/2012 - 13:02 | 2790416 resurger
resurger's picture

Did anyone on ZH say it:

one more time "FUCK YOU BEN BERNANKE"

Thu, 09/13/2012 - 13:03 | 2790418 BrigstockBoy
BrigstockBoy's picture

So what's the best way to express disagreement with this? Who is the right audience?

Thu, 09/13/2012 - 13:03 | 2790423 CaptainObvious
CaptainObvious's picture

This grand occasion calls for one of my favorite quotes of all time:

"Insanity is doing the same thing over and over again and expecting different results." ~Albert Einstein

The Bernank?  He's no Einstein, but we already knew that, didn't we?

Thu, 09/13/2012 - 13:06 | 2790462 optimator
optimator's picture

Insane?  Hardly.  Legal robbery for the Banksters till their run out of the country.  I heard one of the ex FED directors say on TV, about the FED, "Now if the other branches of Government would only due their share".  I hope I heard wrong, but the FED does seem to think they are the Government as far as money is concerned.

Thu, 09/13/2012 - 13:03 | 2790425 Atlantis Consigliore
Atlantis Consigliore's picture

http://youtu.be/LCRZZC-DH7M  Is That All the Schtimulus there is?  then lets keep dancing, break out the booze, and have a ball.....

 

da 50 Million Sheeple on Foodstamps,  Drinkup, and have a ball.  

Thu, 09/13/2012 - 13:04 | 2790431 EmmittFitzhume
EmmittFitzhume's picture

Open ended QE means no QE4 since this one's QE-Infinity?  Sorry I am a novice in the ways of counterfeiting money.

Thu, 09/13/2012 - 13:04 | 2790433 SumSUN
SumSUN's picture

QE 3 was pretty good, but can I get QE 4 now?

Thu, 09/13/2012 - 13:06 | 2790453 Traianus Augustus
Traianus Augustus's picture

The only thing a “Central Bank” should be is EXTINCT!!!!

Thu, 09/13/2012 - 13:45 | 2790751 Bastiat
Bastiat's picture

JFK . . .

Thu, 09/13/2012 - 13:06 | 2790456 ThunderingTurd
ThunderingTurd's picture

Hey middle class, enjoy $5 milk and $6 gas...oh and go f'ck yourself.

Thu, 09/13/2012 - 13:06 | 2790461 GubbermintWorker
GubbermintWorker's picture

All they have to do now is find people who can afford mortgages!!

Thu, 09/13/2012 - 13:12 | 2790463 Yen Cross
Yen Cross's picture

 How is the Fed. buying MBS going to improve the Employment numbers, if no one can get a loan, or refinance?

  All this "slush$" is going straight to the EMERGING MARKETS! China has been devaluing the yuan/$ for 2 weeks, even though the "DXY" has tanked!

  I can't wait for Japans "NODA" to go apeshit in Asia session over the ($/¥) hitting the 77 handle!

Thu, 09/13/2012 - 13:07 | 2790464 WinstonWolfe
WinstonWolfe's picture

QE2.5?

Thu, 09/13/2012 - 13:07 | 2790465 WinstonWolfe
WinstonWolfe's picture

QE2.5?

Thu, 09/13/2012 - 13:07 | 2790468 ebworthen
ebworthen's picture

The FED Bukkake fest continues.

Corrupt banks and lenders rewarded; responsible citizens punished.

Thu, 09/13/2012 - 13:07 | 2790470 knukles
knukles's picture

Come to think of it...

What the fuck else is new?

Were you expecting something rational, sensible, utilitarian as in greatest good for the greatest number, for the benefit of the peasantry, the next right thing?

Fuck no!

This is what everybody but the most delusional should hev been expecting.

Thu, 09/13/2012 - 13:08 | 2790474 yogibear
yogibear's picture

Give it time gents, the dollar will break the lows. We are going much lower eventually.

Thu, 09/13/2012 - 13:08 | 2790475 Kastorsky
Kastorsky's picture

Hello,  Phoenix Capital 

will you stop flooding ZH now?

Thu, 09/13/2012 - 13:08 | 2790477 Racer
Racer's picture

What's stimulative about soaring inflation in things you need? And any savings you have are better off in gold not in a bank because you have to pay them to keep it there because you don't get any interest to keep pace with inflation?

Thu, 09/13/2012 - 13:09 | 2790484 EmmittFitzhume
EmmittFitzhume's picture

These people are fucking every regular guy out of their hard earned money(symbolically) and they don't even bat an eye.  What is the payback for them? What do they have coming to them eventually? Hmmmmmm.....

Thu, 09/13/2012 - 13:09 | 2790485 Catullus
Catullus's picture

Fuck it. Time to lever up. This is never going to end.

Buy a house, finance a car, buy some gold, sell your nothing dividend stocks. Get out of bonds. And get as many credit cards as you can.

Get your shit now before the dollar turns to trash. Not sure why anyone is trying to be prudent any longer.

Thu, 09/13/2012 - 13:25 | 2790631 Yen Cross
Yen Cross's picture

max out your credit cards on "physical metal", then cut them up! Rent a cheap safe place and go off the grid!

Thu, 09/13/2012 - 13:10 | 2790487 Broccoli
Broccoli's picture

Dang, what a horrible time to accidentally lose all my gold and silver which I will now never have the opportunity to redeem or have it confiscated by executive order.

Just shucks.

Thu, 09/13/2012 - 13:09 | 2790491 Lost Wages
Lost Wages's picture

What is this going to do for mutual funds like PTTRX and DIPSX? Do mutual funds containing MBS and TIPS behave at all like owning TIPS and MBS directly?

Thu, 09/13/2012 - 13:13 | 2790499 docj
docj's picture

You guys have it all wrong. Benron is after another "Man of the Year" award from Time - this time for solving America's obesity crisis. He wants to make food so expensive only "the rich" can afford it and energy so expensive that everyone has to walk to get anywhere.

What a swell guy. < / sarc >

Wow - I suppose this means that Chopper Ben and his bankster cabal is not yet satisfied with the destruction and death his biflationary polities of brought about so he's going to double down on it.

Evil does not begin to describe these jackals.

Thu, 09/13/2012 - 13:11 | 2790501 khakuda
khakuda's picture

End the Fed

Thu, 09/13/2012 - 13:11 | 2790503 babylon15
babylon15's picture

"The few own the many because they possess the means of livelihood of all ... The country is governed for the richest, for the corporations, the bankers, the land speculators, and for the exploiters of labor. The majority of mankind are working people. So long as their fair demands—the ownership and control of their livelihoods—are set at naught, we can have neither men's rights nor women's rights. The majority of mankind is ground down by industrial oppression in order that the small remnant may live in ease."
—Helen Keller, 1911[20]

Thu, 09/13/2012 - 13:17 | 2790555 duckarooni
duckarooni's picture

Exactly. America is descending into a black hole of oblivion despite the hard work of it's people to prop up this one per cent of scumbags.

Thu, 09/13/2012 - 13:13 | 2790520 dcb
dcb's picture

tbt jumped on the news, and I though the whole purpose was to bring bond yeilds down. funny each time we do qe yeailds jump, but the fed says they go down

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