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FOMC's Bag Of Tricks Is Empty... For Now - Full Statement Redline
The FOMC statement once again had a little for everyone but critically lacked the all-important- "we'll print now and to infinity". Key headlines from the statement, via Bloomberg:
- *FED SAYS ECONOMY `EXPANDING MODERATELY'
- *FED SAYS INFLATION `HAS PICKED UP SOMEWHAT' ON ENERGY
- *FED SAYS GROWTH TO STAY MODERATE, `THEN TO PICK UP GRADUALLY'
- *LACKER DISSENTS FROM FOMC DECISION
- *FED SEES `SIGNIFICANT DOWNSIDE RISKS'
- *FED SEES `EXCEPTIONALLY LOW' RATES AT LEAST THROUGH LATE 2014
Pre-Fed price levels:
ES 1382, IG 98.6bps, HY $95.58, 10Y 1.97%, Gold 1639, EUR 1.3200, AAPL 609.5
Immediate Reaction
10Y +3bps, Gold -$10, ES -1pt, EUR -15pips, AAPL -$0.5
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More shit
taaaaa daaaaa! The wizards got nothing! Don't pay attention to the guy behind the curtain!
HMMMM.... Fed and Bernanke in a box... Can't announce QE3 because China immediately dumps the dollar on the news, or don't announce QE3 and then China begins their slow dump of the dollar
Yep, painted themselves into quite a deep corner here.
Intellectuals (pH Dees) at it again.... when will they ever learn "Do not fuck with us" ~ Tyler Druden
They have indeed, but it's even more than most realize.
This was their last chance to maneuver this year. From here on out it's too close to the election. The Fed never dares big moves close to election day for fear of loss of independence and Congress cracking down on them.
This was it. Nothing more can happen this year.
Exactly, now its too late, far too risky to do anything for the rest of the year because if something were to go real wrong theres no time to try to fix it. $4 gas and hovering markets thru summer and fall election...lots of pissed off broke folks.
I was saying if they wanted to do anything they should have staged a market 'crisis' about 6 months ago, but nooooo they couldnt even do that. Every little market drop had to be immediately recovered by next morning. So now, we glide from NYC to L.A. with a engine left, and 1 wing, fuel tank pretty much dry....Good luck Ben, we're all countin on you.
Same shit different day.
I love that. FED sees exceptionally low rates through "at least" 2014.
Translation; forever.
Lste 2014? How about never? Does never work for you Fed bozos? Excuse me while I go fondle my gold. You Fed wankers can fondle something else.
i'd like to fondle that chick in your avatar.
I'm pretty sure this is her:
http://en.wikipedia.org/wiki/Alina_V%C4%83cariu
Seems pretty clear they'll dangle the qe3 carrot as long as possible.
Exactly. Dangling QE 3 is essentially QE 3. Why print when your words can have the same effect?
Prepare for them to press "Eject" on silver.
I'll be waiting for it with open arms and baited breath...
You do realize it will happen at a time when equities absolutely collapse? We're running out of small and manageable defaults.
The trick will be catching some with the credit cards into the collapse but before the system freezes and no one's able to use them until further notice.
That's my plan. Probably futile but it's worth a shot.
.
Welcome to the united states of apples
AAPL is the only thing saving this market right now and Bernanke.
Sweet. Another 2+ years of a 2.5% mortgage.
Of course, the inflation in all other aspects of life will more than make up for it.
pods
They just need a drop before doing some more hard core pump action.
Usual MO.
Root for Ben as if he is a college fratboy....instead of Chug Chug......PRINT PRINT PRINT....YOU CAN DO IT!
Growth to staay moderate. Say what? Growth to stay moderate? LOL
Their job is pretty easy: let the porn addicted secretary to type some text, then change it slightly on each meeting, job done and collect tax payer's money as salary
Porn? Nuh-uh, they just gossipin' about the new Deacon at the church on the phone, um-huh. It's D.C., baby....
And down goes gold. Again...
Guess some honest market participant had to unload 5 million ounces at any price in one second....
I am getting so pissed, they keep on kicking the crutch away from a one legged man, and its US banks that do, fucking wankers, may they rot in eternal pain every last one of them
Of course. Hedging or some such for their "clients" (victims).
It was rather Hawkish, I'd say. Wonder how the sellsiders will spin this one?
Wonder how much laughter went into this statement.
Bernanke: "I think I will hold the fake QE hints for the presser. Does everybody agree with that?"
LAUGHTER.
Here's the key sentence:
"The Committee expects economic growth to remain moderate over coming quarters and consequently then to pick up gradually."
I wonder how long it will take for this sentence to sink in? :)
Hahahaha, 'THEN to pick up gradually'....so when is THEN?? 2016? hurry up, I mature in 10 years you ghouls....and gradually as in Spanish Bonds blowing by 6% 'Gradually'.... like that?
Mr. Market has his feet in cold water now
Low rates are all they need to support the banking system and keep the banks buying Treasuries. There is really only a need to continue the printing program via low rates. I am not really sure why people pretend this is not full blown printing press action behind a lace curtain. It is being done in the worst possible way that will do nothing for the economy. Pure inflation.
Is there a word for 'Bank Supported Government'?
Seems to be the only business they're in. BTW, Lloyd "The Smelly Oily Alcohol Turd" Blankfein says GS doesn't need the discount window.
"We were taking very little risk at the time" Lioyd B.
Yes that word is "Banktatorship"
Niiice, I like it!
The government and financial system are Saimese twins sharing a heart and brain. One of them isn't going to make it if we try for separation!!
Exactly. Do people (Krugman obviously doesn't based on his recent column) not understand that the way in which interest rates are held low is by a continual injection of "capital" i.e., freshly created dollars? Keeping interest rates at near zero % is the means of inflation.
PMs hardly moved.. the act is wearing thin
'Moderate gradual improvement, with a great chance of severe downside risk'....gee, thats great...hey let's all pile into Apple!
No latency on gold raid. Must...get....oil....down....
FT Alpha good mock up on the IEA apparatchiks assessments of stockpiling
http://ftalphaville.ft.com/blog/2012/04/25/973651/saudi-oil-puzzle-continued/
Still looking for this...
*FED SEES `EXCEPTIONALLY LOW' RATES 4-EVER!
They have no other option, even raising rates to 1.5 would blow the whole thing to smithereens. They built the sand castle upon 0%, and have to keep it at 0%.
Exactly. Since they can't raise them now, how they gonna do it with another $3T of debt on the books?
(Of course, the joke's on them in the end, as rates will rise even without their intervention. Tee hee.)
"Moderate gradual improvement, with a great chance of severe downside risk--except for Apple, which the committee agreed, is the only thing that will see no downside risk."
Shorter Fed: We're busy bailing out Europe so leave us alone. In the meantime have some more ZIRP.
We're trying to fill a bottomless pit over in Yurp, but its funny the more fake money we pour in the deeper the hole gets. HUH, imagine that!
Fed says "economy will ‘pick up gradually’"
Proper voting may be required...
For some reason this comes to mind:
Old Mother Hubbard
went to the cupboard
to fetch poor Rover a bone . . .
OK coma patient we're removing the full life support systems....so now RISE and walk!!
Our parents was so stupid. Economy it's easy, you just have to let interest rate somewhere near 0 and everything is fix !!
Bernake is a genius !!
Why the HELL didnt all these genius economists discover this fast, simple cure hundreds of years ago? o% interest rate, everything FINE! Its so EASY!
Why the HELL didnt all these genius economists see it comin'?
No one EVER sees it coming, just like this time no one will have seen 'it' coming when 'it' suddenly happens one morning.
Can't make any decisions on interest rates until late 2014. Way to go out on a limb Bernanke. Could you imagine telling your employer, wife, banker, etc. the same?
This Bernanke MF guy is such an epic failure.
A classic case of a druggy in denial. Once they relapse, they are going to hit it hard. The very fact that tptb and the commentators alike refer to Qe on a regular basis means sooner or later it will be inevitable.
Buy The F'in Dip (if you can find a seller that is)!
they really have shot all their bullets. look at DXY its not gone positive.. the market is buying this shit less and less.. dollar holders moving out everytime it spikes like this.
part two of this act later with bigben.. see what hes got
Its real hard to convince a bunch of crackheads going thru withdrawal that some potpourri on the stove is just really as good as a bowl of crack.
bah humbug. fireworks start at presser.
Bit depressing seeing gold and silver fall all the time but in this upside down world, what goes down must go up!
The economy is expanding moderately? What world do these people live in? Recent college grads working at Starbucks (if they're lucky), the real unemployment rate probably around 20%, food stamps all over the place...seriously, WTF. Have they walked around any real city in the US lately...it's ugly man...ugly.
I went to Lark Burger here yesterday, the place was empty (but they have excellent burgers) anyway the girl who took my order told me she got her degree 2 years ago and has been working here ever since, and that it was a pretty good job compared to what her classmates have been able to find.
Those people don't count anymore and they will die off soon enough. Didn't get the memo?
Do the statements always come out at 12:30? I was planning on shorting gold but I was waiting until 2pm.
When necessary the FED will buy equity futures via their banking associates. Check out this video as Grayson grills the FED's Gen. Counsel about market manipulation
http://displacedema.blogspot.com/2012/04/does-fed-manipulate-stock-market.html
Fed "sees"
or
Fed "Seize"
?
No operation twist extension?
Who is going to buy the additional $120B in Treasury debt EVERY MONTH?
Well when you can borrow Fed money for 0.25%...you can buy alot of treasuries for .9% to 3% returns....and they will....the banks will be filled with that junk....and the other investors will be chasing returns...Facebook....junk bonds..whatever....this has turned the markets into a scam...we are now a joke...
I see they've found the lost chapter of Austrian economics -- "The secret to finding Die Rheingold is 0% interest."
Damnit! I sold all my AAPL at 300 to buy silver at 48!!!! :*(
Wow youre a moron! You better go over to Yahoo!Finance you'll fit in better over there with those other idiots.
Similar to Wal-Mart Silver is experience a Stinko de Mayo
I told people back in 2008 they better buy their silver now, when its $5 an oz....then today you see a 'dip' to $30 and it means nothing.
i will now sell my silver and buy aapl
'Nothing to see here, till 2014 or so....m'kay thats all the news we've got for now, see ya'
Man this BS song and dance routine is really getting old.
"`EXCEPTIONALLY LOW' RATES "
The word exceptional means:
1) Apple earnings are exceptionally high
2) the price of gas is exceptionally high
3) People are exceptionally mad about Bernanke
The Fed missed on this one....September we should have a fight over the debt ceiling....and Europe should have spent another 2 trillion by then....I am amazed gold is down...but my cynic side says there is some deal between CB´s for it to be down....and for China to be able to buy it at that...a gold guarantee more or less
"Empty Bag of tricks"?
But Bernank has assured us that the Fed has many tools ...
Or maybe it was many fools. Can't remember the exact syntax.
So basically the Fed is admitting banks will remain technically insolvent until at least 2014, since they can't afford to pay even 1% interest on our savings accounts.
There are just so many ways you can package a shit sandwich.
*FED SAYS ECONOMY `EXPANDING MODERATELY'
lol