Goldman On What To Expect From Tomorrow's Fed Announcement

Tyler Durden's picture

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rocker's picture

Why Bother

Who Cares

He_Who Carried The Sun's picture

Exactly. Until they've all learned to speak Greek, they won't have a clue about what's going to hit anyway!

DormRoom's picture

Uhm.. if you knew someone who was unemployed, or undemployed, and saw the dying of the light in their eyes, you would care.   But to the point, monetary stimulus does not provide jobs.  Fiscal stimulus via direct jobs from the Fed government like the 1920s WPA program does.  But Congress is too dysfunctional to implement what is needed.  So The Fed is using an axe, when Congress should be using a scaple, in policy options.

NeoCapitalist's picture

So you're making the argument that the Fed governmant can and does create jobs, and the WPA and New Deals 1, 2, 3, 4, 5 x 100 worked and were a good idea?  Wow hard to tell you're in "University".. come back and join the big boys if/when you join the real world, or if/when you understand economics. 

DormRoom's picture

you don't need to go back to the New Deal.  You can look at the data after the Japanese bubble burst.  Its economy started to recover once the government started and sustained an adequate amount of fiscal stimulus, supporting aggregate demand, which allowed businesses time to deleverage.  Before then, it was in a vicious deflationary spiral.

LowProfile's picture

Both the New Deal and Japan's intervention stretched the depressions out by decades.

NeoCapitalist's picture

Pretty much my response in a nutshell.. it's not taught that way in the ivory towers, so he cannot see the reality of that statement.  I cannot blame you too much DormRoom, I was once being brainwashed in "University" as you are now... happens to most young men and women in this country. 

NeoCapitalist's picture

And in response to the Japan Asset Bubble, guess you have never heard of the lost decade(s)?

mnevins2's picture

And we can't overlook that Japan's "lost decades" took place while the rest of the global economy was growing strongly.  A fact which is not true today.  Japan is today stuck with a lot of "bridges to no where" and a ton of debt.  FOMC action is the equivalent of sticking the finger in the holes of the dike.  Futile.

Bicycle Repairman's picture

So the choice is a short deep depression or a much longer more moderate depression.

What's that?  In the short deep depression some of TPTB lose their seats at the table?  Oh well f#ck that then!


Irish66's picture

"we believe a majority of the committee could support it"

Thats were we will get the surprise

Roy Bush's picture

Agreed.  And I don't believe this bullshit about "dissenting views" on the Fed Board.  I think the "dissenting views" are there to boost up "inflation expectations".  (They get all hot and sweaty about these terms!)  I think it's one, big, tight group of satanic-worshipping, blow buddies who are fighting over the chance to gobble down the wet cracker.  They will print until the cows come home.  

gjp's picture

I bet they do expand the balance sheet - and Goldman is just setting the stage for a bigger surprise since that's what these puppetmasters think they need to engineer.

That these guys haven't been thoroughly discredited by nowis amazing.  Greenspan is back?  Someone shoot me now, I can't take it.

SheepDog-One's picture

'expand the balance sheet' is now replacement for promised $3 trillion QE3 playmoney printfest for stocks? Anything short of Bernanke uttering 'Im printing $3 trillion' from his quivering lip falls FAR short of what the markets have priced in so far. 

Man I just love this 'lowered expectations' game, freakin insanity....well good luck to all the gamblers who are betting on this crap, I see only disappointment coming. 'Twist'....'LSAT'

equity_momo's picture

A puked a bit of my Cheerios up when i saw good old Alan disappearing into the Fed building right as theyre discussing market moving policy. And he gets paid by Investment banks and Hedge funds in an advisory role. WTF? seriously.

As for all these banks coming out and saying Twist isnt enough and threatening Bernanke with a market sell off if he doesnt pony up with the Opium. Double WTF.   Fuk the lot of them.

Roy Bush's picture

"Expand the balance sheet"....what a joke!  What "balance sheet"!?  What exactly balances?  All liabilities and no assets?  Or, in beautiful logic, is it all assets and no liabilities?  Does conjuring up trillions of dollars aid in passing all standard accounting practices tests? 


Central Bankster's picture

Is it ironic the Ad on the sidebar here is for Lexmark and HP ink printer cartridges?

JohnG's picture

Very.  Office depot ad......

Sambo's picture

If HP gets replaced by Apple at DJIA ...Dow will head north. HP can focus more on selling ink cartridges leaving the tablets for the bigger boys.

Imminent Collapse's picture

No matter what they do, in the long run, gold soars.  Bring it bitchez!

NeoCapitalist's picture

Stimulus = weaker dollar = gold soaring.  No stimulus = market conidtioned to stimulus now becoming scared the markets cannot function without central planners = gold saors.  You're quite right my friend...

King_of_simpletons's picture

EASING == More Vaseline for the sheep.

Sentence: Yo, I want to ease this plunger up your arse.

SheepDog-One's picture

I call bullshit. Now 'QE3' is just a twist, with maybe a LSAT chaser? What was promised was trillions of free play money for stocks since DOW 9,700 back in Feb., WOW talk about lowered expectations!

Lets see how spoiled brat Sweet 16 girl likes her used VW bug unveiled when she was promised a new red Ferrari in front of all her friends. 

This is all such bullshit.

fuu's picture

SD's been on fire all month.

DirtMerchant's picture

I've been waiting for him to stop candy coating all of this and tell us what he really thinks....guess we'll get that version tomorrow...

Tense INDIAN's picture

Gold and Copper are not showing much signs of BIG QE

Troll Magnet's picture

Just get ready to buy a lot more PMs if there's no significant announcement by the Fed.

And if they do announce LSAP, um, just get ready to buy a lot less.

Cdad's picture

I'm so glad that I live in a binary world created by central bankers, who ironically have destroyed finance and world economies.  I love waking up in the morning after a restless night's sleep wondering if the market will be surging or plunging...with the ES lead always smiling at me and telling me everything is alright...until it plunges during the illiquid hours of the Pacific ocean...all depending on what Ben Bernanke says or does not say.

What a great world.  Thank you Ben Bernanke and Goldman Sachs.


Gandalf6900's picture

tomorrow for me is like christmas...I can't wait

SheepDog-One's picture

I think we're going to see quite a show of things un-hinging all over the place!

RunningMan's picture

How is #3 an actual option? Communication is important, but talking about something is different than doing something.  I talk about doing work, but I only get paid to actually do work (when there is work to do, which there isn't). True funding costs need to come down alot to stimulate economic activity, but we simultaneously need a stabilization and reversion of credit risk to norms. We have neither condition satisfied, therefore continued depression. Can the Fed actually fix this? Liquidity trap.


lizzy36's picture

Blah Blah Blah.

Greenspan is attending. Will do a full demonstration on how to properly blow a REAL bubble assisted by Charlie Evans.

Second verse same as the first.


Tyler Durden's picture

So... there will be easing by the Fed in 2011?

Oh regional Indian's picture

Well, there's definitely been a lot of teasing by the Fed in 2011, what's a little T between sheep and master?


SheepDog-One's picture

Right Ori, no shortage of QE 'T'easing a carrot and stick out in front of the markets since DOW 9,800 in Feb. 'T'easing!

sabra1's picture

he's actually there to push his new line of wrinkle remover!

scatterbrains's picture

If twist is priced in what's the harm of nibbling a little on TBT ? Selling the news or better yet a surprise where they abandon twist and ramp the printing press.


disabledvet's picture

Don't worry Mr. Evans. Your annihilation of Chicago will make you a HERO FOR ALL TIME!

spanish inquisition's picture

I will translate recent press reports choices 1. Cook the books 2. Trim some corporate welfare 3. Lie. If you are going to go with the path of least resistance (i.e. easiest solution) the order will be 3-1-2.

The market has priced in infitine ($) Fed support with unlimited backstopping insurance. That is what the Fed needs to do to save itself, it's shareholders and distribution system (Wall Street). I am guessing the last gasp will be here when $10K is sent to every American.

SheepDog-One's picture

Thats really the bottom line, this market has priced in infinite upward move backstopping by the FED, now they have to deliver, and theyre talking about geeky bond rate flipping programs? 

PulauHantu29's picture

This may be the even that sends the yellow metal soaring over $2,000.

How Barbaric!

Quinvarius's picture

I think they will continue to announce nothing while continuing to buy Treasuries hand over fist in whatever timeframes they feel like manipulating.  They have no duty to tell anyone what they do.  So they will only tell their banker buddies how they plan to manipulate things.  The only thing that is certain is that they cannot stop buying US debt.

Tense INDIAN's picture

we have read Rosenberg and Goldaman....but Tyler....ur views on whats coming and what could be the impact ??

Tense INDIAN's picture

we have read Rosenberg and Goldaman....but Tyler....ur views on whats coming and what could be the impact ??

Tense INDIAN's picture

we have read Rosenberg and Goldaman....but Tyler....ur views on whats coming and what could be the impact ??

fdisk's picture

#1 Dollar is "too high" already, this will translates in

lower corporate overseas profits, unless Benrank shoot BIG to

push dollar lower. Twist will not do much, but I don't think

Bernank is ready to full blown QE just yet.