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

Do NOT follow this link or you will be banned from the site!