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Fed Folds: Will Do Open-Ended MBS Buying, Extends Operation Twist
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 redline comparison to the August statement below:
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Subway® makes a good turkey sub...
sell the news.
Good luck with chump fiat!
So algos read headline number ignore that the fed already buys MBS?
Open ended QE, super. Buying all manner of paper...so when is the war to blame the fallout of QEInfinity?
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
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.
Bernanke casts his vote early for Obama with more monetary stimulus to artificially inflate the market further.
That's exactly what he did. All Hail Obama.
Don't go too fast on that. Watch the price at the pump in the coming weeks...
MiguelitoRation,
Wait, I thought it was all "priced in."
Holy crap, silver went from $32.80 to $33.60 in a flash.
33.91 at the moment. . .
recorded for posterity.
34.12 and rising.
*smiles*
$34.64
34.71. ^
Ben, put me down for $10MM a month. I accept checks and cash.
Baked in.
(Yawn)
zzzzzzzzzzzzzz
Wasn't it more like $60 to $80 per month baked in?
That is not even a rounding error at this point.
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 !!!!
also sell
oil @ $97 and and eur @ 1.29...sell everything !!!
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.
Is that you mortimer?
Flow, bitchez. Way to be all over this from the start, Tyler.
D E S P E R A T I O N. Ben admits the economy is fucked.
Desperate act by desperate men. They have no idea what to do.
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.
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?
fuck you bernake. how you sleep at night is beyond my human comprehension. the millions you fuck everyday. god help this country
pops an Ambien. Maybe the drug co can build an ad around that.
People with such apparent power are chosen with particular attention paid to their innate, extreme psychopathy.
In addition, they actually believe their lies.
ori
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.
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.
in a rational reaction, oil drops on the unlimited money printing.
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.
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.
Never. Sorry. :(
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/
TSY imploding!
And PMs are off to the moon.
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?
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.
Wall Street already whinging that QE4 is too slow in coming. We want QE4 and we want it now!
Freck!
You were right Tyler. This is a clear signal the Fed has run out of room to do much more
stimulus.
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.
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.
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.
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).
Buy gold, Buy oil, Buy corn, Buy rice, Buy land, Buy Guns, Buy Water
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.......
Bill Gross = winning
But, but, but.......
Hi Ho Silver....and away.....(for the old timers)
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?
Lets' not get all Rudy Von Havenstein on him now..
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.
". . .over the cliff." is an oft heard whisper. . .
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.
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
If only you can hear my maniacal laughing right now.
But Graham Summers told us there would be no more QE. WTF? I want my money back, Graham!
Just waiting for that slimy hagfish to break the surface so I can club him with a oar.
lol at the headline "Fed Folds".. shocking!! Next thing you'll tell me is.. "Chris Christie folds and supersizes his value meal!!"
price-fixing cartel intervenes again to prevent housing prices from reaching market equilibrium
...via massive should-be-illegal purchases of toxic paper.
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.
I'm reminded of the mail I received when I first created a user ID for ZH - 'Now you've done it'!
DavidC
, ... and another bubble is nearing blow-off top stage.
I think the Brooklyn Bridge is for sale, Mr Bernanke.
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.
There goes my sugar rush
Looks like I picked the wrong week to quit sniffing glue.
Need a hotkey for that one too ... ZH needs a special edition keyboard!!!
Long live the wall paper, I don't think the FRN is suitable as toilet paper.
Didn't Spock say something like that,
"Live long, and paper" (?)
No, that was Mr. Whipple.
"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
http://www.youtube.com/watch?v=H7_pX_raPHs
The reaction of the market was immediate.
Fed blows it. EVERYTHING up!
http://confoundedinterest.wordpress.com/2012/09/13/fed-pulls-the-trigger-with-new-bond-buying-program-40-billion-in-mortgage-backed-securities-per-month/
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/
ZIRP until 2015 - they know it's over.
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.
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!!!!!
Abolish that goddamn jewish temple already.
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...
Sorry, doubble post.
How about goldmining in Alaska?
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......
Happy Days are here again.... the Feds Open Market Operations----
http://www.youtube.com/watch?v=szwclmmKwLg
Was it good for you?
... got a cigarette?
Was it good for you?
... got a cigarette?
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...
So when's the QE4 announcement?
next time spx drops below 1400.
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!
in a little while in the press conference , in between the lines.
in a little while in the press conference , in between the lines.
by the end of October, party on an election year
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!
Alas,poor dollar.
I knew it well........
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.
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.
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.
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.
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.
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.
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.
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.
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/
Only 500 Billion...what a wimp....
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/
"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."
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.
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.
the primitive relics are going orbital and aint stoping for sh----------------------------^^^^^^^
Best to dump US dollars very soon before the crowd coms in. The Fed is trashing the US dollar with no way of stopping.
At least this removes the event risk from the bears. No more 'good' news will be coming for a while.
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.
Drahgi and Bernanke had an orgasm together, almost.
What was Einstien's famous definition of insanity again?
Did anyone on ZH say it:
one more time "FUCK YOU BEN BERNANKE"
So what's the best way to express disagreement with this? Who is the right audience?
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?
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.
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.
Open ended QE means no QE4 since this one's QE-Infinity? Sorry I am a novice in the ways of counterfeiting money.
QE 3 was pretty good, but can I get QE 4 now?
The only thing a “Central Bank” should be is EXTINCT!!!!
JFK . . .
Hey middle class, enjoy $5 milk and $6 gas...oh and go f'ck yourself.
All they have to do now is find people who can afford mortgages!!
How is the Fed. buying MBS going to improve the Employment numbers, if no one can get a loan, or refinance?
All this "slush$" 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!
QE2.5?
QE2.5?
The FED Bukkake fest continues.
Corrupt banks and lenders rewarded; responsible citizens punished.
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.
Give it time gents, the dollar will break the lows. We are going much lower eventually.
Hello, Phoenix Capital
will you stop flooding ZH now?
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?
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.....
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.
max out your credit cards on "physical metal", then cut them up! Rent a cheap safe place and go off the grid!
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.
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?
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.
End the Fed
"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]
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.
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