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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StychoKiller's picture

Subway® makes a good turkey sub...

Conman's picture

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

Shameful's picture

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

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

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.

MiguelitoRaton's picture

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

RSloane's picture

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

Nothing To See Here's picture

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

Hohum's picture

MiguelitoRation,

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

PaperBear's picture

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

firstdivision's picture

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

helping_friendly_book's picture

Baked in. 

 

(Yawn)

zzzzzzzzzzzzzz

firstdivision's picture

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

helping_friendly_book's picture

That is not even a rounding error at this point.

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 !!!!

muppet_master's picture

also sell

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

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.

Christoph830's picture

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

TomGa's picture

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

ghostfaceinvestah's picture

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

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.

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?

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

WakeUpPeeeeeople's picture

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

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

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.

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.

101 years and counting's picture

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

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.

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.

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/

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?

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.

tawse57's picture

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

Freck!

Headbanger's picture

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

stimulus. 

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.

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.

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.

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).

TrustWho's picture

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