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Operation Twist Is Here - Fed To Buy $400 Bilion USTs With 6 To 30 Year Maturity, To Roll MBS Maturities Into New MBS

Tyler Durden's picture




 

Complete Fed Statement breakdown:

  • FED SEES `SIGNIFICANT DOWNSIDE RISKS' TO ECONOMIC OUTLOOK
  • FED TO BUY TREASURIES WITH 6-YEAR TO 30-YEAR REMAINING MATURITY
  • FED LEAVES FEDERAL FUNDS RATE TARGET AT ZERO TO 0.25 PERCENT
  • FED SAYS PROGRAM PUTS `DOWNWARD PRESSURE' ON LONG-TERM RATES
  • FED TO SELL TREASURIES WITH 3-YEAR OR LESS REMAINING MATURITY
  • PLOSSER, FISHER, KOCHERLAKOTA DISSENT FROM FOMC DECISION
  • FED REPEATS `EXCEPTIONALLY LOW' RATES THROUGH AT LEAST MID-2013
  • FED TO BUY $400B OF LONG-TERM DEBT, SELL $400B SHORT-TERM DEBT
  • FED EXTENDS AVERAGE MATURITIES OF SECURITIES HOLDINGS
  • FED TO REINVEST MATURING HOUSING ASSETS IN HOUSING DEBT
  • FED SAYS INFLATION `APPEARS TO HAVE MODERATED'
  • FED SEES `CONTINUING WEAKNESS' IN LABOR MARKET
  • FED PURCHASES TO BE DISTRIBUTED ACROSS FIVE SECTORS
  • FED SAYS 32% OF DEBT PURCHASES MATURE FROM 6- TO 8-YEARS
  • FED SAYS 32% OF DEBT PURCHASES MATURE FROM 8- TO 10-YEARS
  • FED SAYS 4% OF DEBT PURCHASES MATURE FROM 10- TO 20-YEARS

In other words: $400 billion in POMOs over the next 8 months or so, with the monthly at about $50 billion. Also MBS repurchases for a token amount. No LSAP as most expected, and no IOER rate cut. Goldman once again about half of what it expected.

And statemenet blackline:

FOMC Comp

 

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Wed, 09/21/2011 - 14:37 | 1693519 tekhneek
tekhneek's picture

do the twist, bitchez!

Wed, 09/21/2011 - 14:40 | 1693529 andybev01
andybev01's picture

...like we did last summer, and the summer before that.

Wed, 09/21/2011 - 14:46 | 1693604 rcintc
rcintc's picture

Horay!! We're Saved! All is Well!
Just in case....buy Silver and Gold!

Wed, 09/21/2011 - 14:50 | 1693664 wombats
wombats's picture

Why is the Gold price falling now....and Silver going up?  I do not understand.

Can someone explain why this is happening???

Wed, 09/21/2011 - 14:53 | 1693710 healey
healey's picture

Well I think gold is falling because there was no cut to the IOER. Cutting that would have been likely inflationary. Gold is an inflation hedge.

Wed, 09/21/2011 - 14:53 | 1693713 tekhneek
tekhneek's picture

Free market?

Duh.

Wed, 09/21/2011 - 14:57 | 1693752 wombats
wombats's picture

That was helpful.  Thank You.

Wed, 09/21/2011 - 14:59 | 1693778 Slash
Slash's picture

I don't understand wtf this is going to do. Are long term rates really a problem? Are slightly lower rates really going to entice people to buy over priced homes? I doubt it....

 

This is for something else right? How will this benefit the banks/treasury? Are there lots of long term treasury auctions coming up that need monetizing?

Wed, 09/21/2011 - 15:02 | 1693813 DoChenRollingBearing
DoChenRollingBearing's picture

Slash, I think you are on it: this will essentially do NOTHING.

Wed, 09/21/2011 - 15:16 | 1693911 Slash
Slash's picture

Not to mention it's basically steralized purchases too isn't it? Selling $400 billion back into the market (taking liquidity out), while printing up $400 billion to monetize longer term trashuries. Won't this also squeeze profits of the banks that are playing the yield curve? How does this help anyone except maybe to fund the government for a couple more months?

 

Also, as we saw with QE 2, despite the fed buying, rates actually rose slightly (check the charts). This is b/c the market was tricked into bidding up risk assets and moved money out of bonds and into stocks/commodities. Can we expect a repeat of this? I'm short trashuries right now (although hedged now) in anticipation of market participants ultimately moving back into stocks/commodities.

Wed, 09/21/2011 - 15:17 | 1693921 BDig
BDig's picture

With this move, they're trying to keep the banks solvent, not trying to get people to buy homes.  Banks balance sheets are dripping with mortgages, so dropping interest rates is simply a mechanism to keep existing home values stable near the top and therefore BAC - Countrywide solvent.

The value of a home is inversely correlated with interest rates, just like the price of bonds.  That is, if you increase rates, the value of the bond will fall.  So they're just trying to prop up home values with this move.  It's not to entice new borrowers - not directly anyway.

Wed, 09/21/2011 - 15:23 | 1693965 Slash
Slash's picture

oh I see....well not necessarily the value of homes, but the value of the morgage on that home right?. If that mortgage was created at 6% and rates drop, those mortgages are more valuable. So really it's a play to make all the toxic assets slightly less toxic....temporarily......probably trying to entice suckers to get the securitization process going again.

Wed, 09/21/2011 - 15:18 | 1693924 BDig
BDig's picture

Duplicate

Wed, 09/21/2011 - 16:01 | 1694178 arizona11912
arizona11912's picture

I think there's enough stupid people out there that will "buy the dip" of interest rates for homes for a short period of time. Then once the FED sells the short term bonds the treasury may "bundle" them and make them longer term bonds. Not sure if it’s feasible but I don’t see why it couldn’t be done that way. What do you guys think? Thanks...

Wed, 09/21/2011 - 15:00 | 1693799 tekhneek
tekhneek's picture

That was a joke.

As discussed here, regardless of the Fed's announcement it was in the plan to hammer the prices at 2:15pm to avoid the sudden knee-jerk reaction to the upside.

A lot of speculative traders have no idea what this announcement means, combine that with a planned attack of the prices and you have a short term sell-off which is what was wanted.

This is probably one of the few remaining opportunities to get gold at this price, and you should seriously consider buying in my opinion.

Wed, 09/21/2011 - 15:04 | 1693831 DoChenRollingBearing
DoChenRollingBearing's picture

Green

tekhneek is right.

Physical gold is very cheap.  TPTB are giving us a gift.  Take it!

Wed, 09/21/2011 - 16:00 | 1694048 Ag Tex
Ag Tex's picture

Currency printed out of thin air to eventually acquire MBS.  This is a short-term smoke screen.  The end game is for the Fed to gradually acquire mortgages and become landlord over all its new tennants.   The Founding Fathers issued warnings of such things.  Get gold and silver while you can or become serfs.

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered."  Thomas Jefferson
Wed, 09/21/2011 - 14:58 | 1693767 Panafrican Funk...
Panafrican Funktron Robot's picture

The US dollar price of gold is subject to the availability of US dollars.  This announcement was a mild disappointment regarding the increase in the availability of US dollars, ergo the continued relatively tight range for gold.  If you trade virtual/paper gold, selling OTM puts and/or NTM/ATM covered calls in your Gold ETF of choice is a good way to play this in the interim while we wait for late October/early November.  

Wed, 09/21/2011 - 15:00 | 1693770 DoChenRollingBearing
DoChenRollingBearing's picture

@ wombat

Perhaps because there is no obvious QE3 to drive investors to gold.  But, be calm, the future od gold and silver ix excellent, perhaps better than ever.

The best blog for gold TRADING is Turd's:

tfmetalsreport.com

EDIT:

These machinations do NOTHING to hurt gold and silver, if anything, as we see more manipulation the bull case for gold gets STRONGER.

Wed, 09/21/2011 - 14:54 | 1693709 cnsteph
cnsteph's picture

Never mind... Wombat asked the same quesition.

Wed, 09/21/2011 - 14:55 | 1693733 tekhneek
tekhneek's picture

Buy.

The.

Fucking.

Dip.

Wed, 09/21/2011 - 14:58 | 1693766 gmrpeabody
gmrpeabody's picture

No big QE3, market knee jerk is to sell gold off. After they have time to think about it..., they will start adding back to their positions. BTFD is all you need for now.

Wed, 09/21/2011 - 15:17 | 1693773 Spirit Of Truth
Spirit Of Truth's picture

Wow!....they should put Benny on the cover of Time magazine! I mean this miracle worker is god! Everything is fixed now!  Greece is solvent....the European banks are recapitalized....unemployment is cured....the wave of foreclosures has ended and the housing market is fully rebounding.

This whole Fed thing is just a wonder to behold. These central banks can manage the world economy far better than individuals.  Who needs free markets when these mathematical wizards can run the show so well?

/SARCASM

When oh when will these arrogant schmucks receive their pink slips (and arrest warrants).

Wed, 09/21/2011 - 14:59 | 1693775 UBIGDummy
UBIGDummy's picture

so is this qe2.5, 3.0, 2.6, 2.7, 2.8?

I m sooo confused? Isnt they just doing an exchange and not actually injecting money into banks. Sell Old/expiring shit, and trade it in for long term useless shit? Is the printing press adding to the M3 or not?

Can someone explain in dummy english for me?

Wed, 09/21/2011 - 15:17 | 1693923 AbelCatalyst
AbelCatalyst's picture

no extra money - just shifting and reinvesting some interest.  What we're seeing is a divided FED and a divided kingdom can't stand....  The Bernak is already out on a thin branch by himself, now three members are no longer supporting him...  He's almost totally alone and the FED has become part of the political process - no more stimulating, no more printing: hello deflation...  Lower stock market, lower house prices, lower interest rates, lower demand, lower everything...  Don't be surprised to see the greeback (USD Index) make a run at $85 or $90... Then, or course, it all comes to a head and reverses and gold hits $15K an ounce!!    

Wed, 09/21/2011 - 14:51 | 1693671 Ethics Gradient
Ethics Gradient's picture

No. I'm not a huge fan of doom mongering - so Dog knows why I read this site. The difference here is that now it's different.

The bullets they used last time wont work this time.

Last time we bought the idea of nationalised banks. What will be accept this time?

Wed, 09/21/2011 - 14:42 | 1693551 OOONONO
OOONONO's picture

did it already - now what? 

Wed, 09/21/2011 - 14:52 | 1693680 strannick
strannick's picture

Now fiddle with it while America burns

Wed, 09/21/2011 - 15:18 | 1693929 OOONONO
OOONONO's picture

what if "it" got squished?

Wed, 09/21/2011 - 14:43 | 1693562 chet
chet's picture

But QE it ain't.

Wed, 09/21/2011 - 14:46 | 1693613 Fox Moulder
Fox Moulder's picture

Twistin' in the wind.

Wed, 09/21/2011 - 16:59 | 1694440 covert
covert's picture

govt cooking the books. when will it end? how much @&*^ can you eat?

http://covert3.wordpress.com

 

Wed, 09/21/2011 - 14:37 | 1693520 Little John
Little John's picture

New York Times 9/21/2015

 “They only gave me the job because they knew I couldn’t do it”                                                    

    In an exclusive NYT interview former Federal Reserve Chairman, Ben Bernanke, related          that he is convinced he was appointed only because he was “ a clueless academic stooge . 

 

     Mr Bernanke, who now works as CFO/fry cook at Ponzi’s Pizzaria in Polookaville, was          quoted as saying “ I mean, come on, they knew  the economy was a sinking ship with no hope for recovery yet they recruited me out of Princeton and got me to take over as Captain of the Titanic. They knew I had no experience with real world.  I told them during the  interview I didn’t have a clue about anything other than Keynesian dogma.  They said that was exactly what they were looking for.  Now everyone blames this mess on me.  They only gave me the job because they knew I couldn’t do it. Hey I was a victim too”.       

Wed, 09/21/2011 - 14:46 | 1693609 OOONONO
OOONONO's picture

Pfffftttt!   Like the NYT will still be around in 4 years - sheesh, where u from?

Wed, 09/21/2011 - 14:47 | 1693626 Clueless Economist
Clueless Economist's picture

I hope that bearded creep Krugman will be waiting tables in 2015 at Ponzi's Pizzeria also

Wed, 09/21/2011 - 14:55 | 1693735 Little John
Little John's picture

They told him if he took the job he stood to make a lot of dough in the future.

Wed, 09/21/2011 - 14:48 | 1693630 Dan Watie
Dan Watie's picture

Perhaps he can get his old job back at South of The Border.

Wed, 09/21/2011 - 15:07 | 1693858 Spirit Of Truth
Spirit Of Truth's picture

Don't you mean "book cook"?

Wed, 09/21/2011 - 14:39 | 1693521 tekhneek
tekhneek's picture

duped.

Wed, 09/21/2011 - 14:40 | 1693524 Let them eat iPads
Let them eat iPads's picture

Aaaaand, markets plummet.

Wed, 09/21/2011 - 14:42 | 1693558 Grand Vizier
Grand Vizier's picture

Plummet?  Really? 

Wed, 09/21/2011 - 14:57 | 1693761 Waffen
Waffen's picture

I am afraid not.  The manipulators are winning.

No Overt QE..markets continue to levitate.. Metals flatline..

This continues for how long?

Wed, 09/21/2011 - 14:40 | 1693525 jdelano
jdelano's picture

scoreboard:

 

tylers:  many

jdelano: 1

Wed, 09/21/2011 - 14:54 | 1693725 Dan Watie
Dan Watie's picture

<--- one

<--- many

 

How many Tyler Durdens are there?

Wed, 09/21/2011 - 14:39 | 1693526 Waffen
Waffen's picture

What a disapointing pile of shit.

I guess we will be stuck in LIMBO another 6months, year or more.

Wed, 09/21/2011 - 14:49 | 1693642 Cash_is_Trash
Cash_is_Trash's picture

LIMBO is the new normal.

Going nowhere fast!

Wed, 09/21/2011 - 15:13 | 1693891 Moe Howard
Moe Howard's picture

You can't get there from here.

Wed, 09/21/2011 - 14:49 | 1693646 Wooly
Wooly's picture

Agreed.

My immediate thoughts were.. "is that it?"

Wheres the shock and awe?

Wed, 09/21/2011 - 14:40 | 1693527 HpDeskjet
HpDeskjet's picture

So, that's disappointing for some ppl i guess

Wed, 09/21/2011 - 14:40 | 1693528 SofaPapa
SofaPapa's picture

The S&P never even considered going positive on the announcement.  Doesn't look like "shock and awe"...

Wed, 09/21/2011 - 14:40 | 1693530 Cassandra Syndrome
Cassandra Syndrome's picture

Twisted Bitchez

Wed, 09/21/2011 - 14:40 | 1693531 NotApplicable
NotApplicable's picture

Hurrah! We're saved!

Wed, 09/21/2011 - 14:40 | 1693532 Spastica Rex
Spastica Rex's picture

Yawn.

Wed, 09/21/2011 - 14:41 | 1693534 AnarchoCapitalist
AnarchoCapitalist's picture

Initial market knee-jerk reaction= disappointment.

Wed, 09/21/2011 - 14:46 | 1693599 junkyardjack
junkyardjack's picture

Not a lot of volume yet, we'll see what the market thinks around 3:30PM I suppose

Wed, 09/21/2011 - 16:06 | 1694210 the eastern promise
the eastern promise's picture

good call... DOW - 284 points at close...

Wed, 09/21/2011 - 14:41 | 1693535 Belarus
Belarus's picture

I'm guessing that over the next month the markets drop at least 15%. KABOOM!

Wed, 09/21/2011 - 14:43 | 1693565 OOONONO
OOONONO's picture

it won't - stocks only go up, k?

Wed, 09/21/2011 - 20:53 | 1695245 AmericanBulldog77
AmericanBulldog77's picture

Similar to housing values only went up b4 the Housing Bubble Burst?

Wed, 09/21/2011 - 14:41 | 1693536 caerus
caerus's picture

sell everything that's not nailed down...wait sell that too

Wed, 09/21/2011 - 14:42 | 1693552 Let them eat iPads
Let them eat iPads's picture

I'm not selling my children.

Wed, 09/21/2011 - 14:47 | 1693625 Bobbyrib
Bobbyrib's picture

Bernanke already bought them, this transaction wasn't open to negotiation.

Wed, 09/21/2011 - 14:50 | 1693655 junkyardjack
junkyardjack's picture

Smart thinking, you'll need some extra hands to operate your backyard farm

Wed, 09/21/2011 - 14:58 | 1693771 Ethics Gradient
Ethics Gradient's picture

Children are in a huge bear market at the moment. Unless you fancy staying long for the next 35 years, get out man. Out, I say!

Wed, 09/21/2011 - 15:08 | 1693861 UBIGDummy
UBIGDummy's picture

You sold your children the day they were born, when you GAVE them to the govt for a Social Security number so you can have a tax deduction. 

NOW your children are indentured servants to the INTEREST on the national debt.  Those children in your house that you feed and cloth, don't belong to you, but aren't you happy you got that tax deduction? 

Govmint wins almost everytime.  Thanks for playing.

Wed, 09/21/2011 - 16:40 | 1694359 Think for yourself
Think for yourself's picture

Why the hell did you nail your children down?

Wed, 09/21/2011 - 18:11 | 1694776 Prometheus418
Prometheus418's picture

You could nail 'em down, and cover all your bases.

Wed, 09/21/2011 - 14:43 | 1693568 mick_richfield
mick_richfield's picture

:-) 

"Sell everything that's not nailed down, and then come back with a crowbar."

Wed, 09/21/2011 - 14:44 | 1693573 SteveNYC
SteveNYC's picture

Unless you own MBS. Then, negotiate a hard deal with the Sack, he'll load up his sack with any pile of MBS shit.

Wed, 09/21/2011 - 14:41 | 1693537 scatterbrains
scatterbrains's picture

tempted to buy TBT here but I think I'll hold out for the Greek default/BACsbestos trigger.

Wed, 09/21/2011 - 14:44 | 1693585 CitizenPete
CitizenPete's picture

 

20.676   -1.1140 (-5.11%)

 

 

Wed, 09/21/2011 - 14:48 | 1693631 scatterbrains
scatterbrains's picture

wait till u see the whites of their eyes!

Wed, 09/21/2011 - 14:41 | 1693539 entendance
Wed, 09/21/2011 - 14:41 | 1693540 Let them eat iPads
Let them eat iPads's picture

Is this what Rosenberg meant by big and surprising action?

Wed, 09/21/2011 - 14:44 | 1693586 OOONONO
OOONONO's picture

i got your "big and suprising (and uncut) action" right here ...

Wed, 09/21/2011 - 23:27 | 1695588 IQ 145
IQ 145's picture

Grrr! That Idiot.

Wed, 09/21/2011 - 14:41 | 1693541 SheepDog-One
SheepDog-One's picture

All of em should be immediately arrested, they are now going to 'buy' their own debt, at your expense, and flip it out into the future...and america does nothing.

BTW this is not QE3.

Wed, 09/21/2011 - 14:42 | 1693553 Spastica Rex
Spastica Rex's picture

SD-1 FTW.

Wed, 09/21/2011 - 14:44 | 1693581 SheepDog-One
SheepDog-One's picture

I wish I wasnt right. This is Insaneville.

Wed, 09/21/2011 - 14:47 | 1693616 scatterbrains
scatterbrains's picture

Where do a sign up for Breakfast with the sheepdog ?

 

Wed, 09/21/2011 - 14:49 | 1693640 Spastica Rex
Spastica Rex's picture

Better to be fucked and right than just fucked. IMO.

Wed, 09/21/2011 - 14:43 | 1693561 hedgeless_horseman
hedgeless_horseman's picture

So, when do we dine at my expense?

Wed, 09/21/2011 - 14:45 | 1693594 SheepDog-One
SheepDog-One's picture

Mmmm stuffed shells!

Wed, 09/21/2011 - 14:48 | 1693603 hedgeless_horseman
hedgeless_horseman's picture

Pearl Street around Christmas time?  Bring a date.  Forward this post to Tyler, and he will give you my contact info.

Wed, 09/21/2011 - 15:43 | 1694085 I only kill chi...
I only kill chickens and wheat's picture

Pearl St. where, there's a lot them. ps I'll pay for my own.

Wed, 09/21/2011 - 14:44 | 1693571 TradingJoe
TradingJoe's picture

Oh sure it is not! But they will do it once S&P is below 1000 and "change":)))!

Wed, 09/21/2011 - 14:44 | 1693582 fyrebird
fyrebird's picture

This is a damp squib.

The Fed is all out of ammo. Enjoy your "free market" everyone.

Wed, 09/21/2011 - 14:45 | 1693593 scatterbrains
scatterbrains's picture

Where da dog at ? woof woof !!

Wed, 09/21/2011 - 14:46 | 1693602 chet
chet's picture

You called it SheepDog

Wed, 09/21/2011 - 15:20 | 1693945 jdelano
jdelano's picture

so did I, and got massively junked for it, so I'm making it a point to gloat a little.  Go ahead and junk.

Wed, 09/21/2011 - 20:11 | 1695137 Bringin It
Bringin It's picture

Just waking up in the far east and I can see you were correct SheepDog.  Appearently, more pain is required.

Wed, 09/21/2011 - 23:29 | 1695589 IQ 145
IQ 145's picture

"The beatings will continue until morale improves"

Wed, 09/21/2011 - 14:41 | 1693542 fdisk
fdisk's picture

USD rising against everything even JPY and GOLD..

Wed, 09/21/2011 - 14:46 | 1693605 cynicalskeptic
cynicalskeptic's picture

The market manipulators are working overtime today....

Gold down right on schedule.....   can't have sheep waking up and feleeing to real safety..... the theater's on fire and they're directing people TOWARDS the flames  and shooing them away from the exits

Wed, 09/21/2011 - 14:52 | 1693697 tekhneek
tekhneek's picture

That'd be your cue to buy the fucking dip, partn'r.

Wed, 09/21/2011 - 15:16 | 1693916 Moe Howard
Moe Howard's picture

No dry ammo!!!

Wed, 09/21/2011 - 15:51 | 1694130 nachtliche
nachtliche's picture

Cry manipluation whenever gold price drops. Or face reality, that greater QE was already priced in, and when it turned out to be only 400billion, it's a big let down hence the gold drop. 

Wed, 09/21/2011 - 14:41 | 1693543 Dan Watie
Dan Watie's picture

END THE FED!

Wed, 09/21/2011 - 14:41 | 1693544 TradingJoe
TradingJoe's picture

Wait for it...algos still "digesting" folks!

Wed, 09/21/2011 - 14:41 | 1693545 lolmao500
lolmao500's picture

Basically sell your gold...

Wed, 09/21/2011 - 14:44 | 1693577 speconomist
speconomist's picture

And why would that be?

Wed, 09/21/2011 - 14:49 | 1693654 cynicalskeptic
cynicalskeptic's picture

Becaues the MOPE team WANTS you to... C'mon... they dropped the price almostg $20 after the FED announcement just to scare the crap out of you.....  Can't have people fleeing to Gold instead of the $US

Nevermind that the $US is hopeless - that Californis is in worse shape than Greece (and lacks that country's gold reserves).... now do as your told

Sell your Gold, Buy US T-Bills (cause the Fed can't keep buying 60% of every auction) and go out and SPEND SPEND SPEND to boost the economy.

Wed, 09/21/2011 - 14:44 | 1693590 Dreadker
Dreadker's picture

Currency devalued by a further $400bn and you say sell gold?  Paper gold yes but physical... no chance!

Wed, 09/21/2011 - 14:52 | 1693694 lolmao500
lolmao500's picture

Paper gold, that's what I meant.

Wed, 09/21/2011 - 14:42 | 1693546 fyrebird
fyrebird's picture

Buying MBS. Like poking money down a rat hole.

So, that's the end of Fed manipulations. Too much heat, I guess. Now we'll get a chance to see what a real market does when the centralized control collar comes off.

Wed, 09/21/2011 - 14:46 | 1693611 reload
reload's picture

If only.............

The reality is, manipulation of Metals and Stock Indexes WILL continue.

Markets will go lower, but it will not be `a real market`, sadly.

 

QE powder is being saved for spring 2012. By then things in main street will be worse and it will be easier to ease.

Wed, 09/21/2011 - 14:55 | 1693737 fyrebird
fyrebird's picture

Probably correct. They want another 10% down and Boehner and teh GOP on bent knee begging for another bailout.

But we'll have a free market until then, with the -10% and everything that comes with it. I wonder if there will be any way to levitate it by then. The exits will be getting crowded in about 24 hours from now.

Wed, 09/21/2011 - 15:49 | 1694121 I only kill chi...
I only kill chickens and wheat's picture

I'm pretty sure a ways back when I bought gold eagles and cmx bars the premium was around $40, now 100-110.

Wed, 09/21/2011 - 14:59 | 1693784 you enjoy myself
you enjoy myself's picture

So, that's the end of Fed manipulations.

 

i don't know -- certainly heard them go to great lengths to assure everyone inflation is neither a near-term nor long-term threat.  it smells like they're setting the table for something...

Wed, 09/21/2011 - 14:41 | 1693547 gball
gball's picture

and let the sell off begin.

Somehow, don't think there will be a late day levitation to end in the green today.

Lot's of disappointed Wall St. types.  Bonuses just got smaller.

But, let the lobbying begin for November QE from GS in 3...2...1...

Wed, 09/21/2011 - 14:42 | 1693548 tmosley
tmosley's picture

Sweet, more time to buy metals.

Thanks, Ben!

Wed, 09/21/2011 - 14:49 | 1693647 fuu
fuu's picture

It predictably went on sale too.

Wed, 09/21/2011 - 14:51 | 1693670 DoChenRollingBearing
DoChenRollingBearing's picture

Yes, although I jumped the gun a bit and bought a little gold yesterday.

Wed, 09/21/2011 - 14:41 | 1693549 Fips_OnTheSpot
Fips_OnTheSpot's picture

Misfire!

Wed, 09/21/2011 - 14:42 | 1693550 Drag Racer
Drag Racer's picture

who are they going to sell to??

Wed, 09/21/2011 - 14:44 | 1693588 Temporalist
Temporalist's picture

The PDs who are required to buy after their bailouts.

Wed, 09/21/2011 - 14:46 | 1693612 SheepDog-One
SheepDog-One's picture

By then, the US will just have 1 big conglomerate federalized state run bank! The USSR wasnt even this insane. 

Wed, 09/21/2011 - 15:26 | 1693993 Campagnolo
Campagnolo's picture

Zimbawe

Wed, 09/21/2011 - 14:42 | 1693554 WonderDawg
WonderDawg's picture

And so they move the carrot again. I guess we'll go on speculating for months about when the real QE3 is going to happen. Yay.

Wed, 09/21/2011 - 14:53 | 1693703 hunglow
hunglow's picture

It goes together like peas and carrots.

Wed, 09/21/2011 - 15:13 | 1693876 hedgeless_horseman
hedgeless_horseman's picture

...like piece and karats.

Wed, 09/21/2011 - 15:25 | 1693982 fuu
fuu's picture

How YOU doin?

Wed, 09/21/2011 - 16:20 | 1694272 DoChenRollingBearing
DoChenRollingBearing's picture

Nice!

A Beretta?

Wed, 09/21/2011 - 14:42 | 1693556 Cleanclog
Cleanclog's picture

Flattening yield curve hurts banks.  Reinvests of MBS and agencies helps banks.  No help for housing, no help for confidence.  Monetary policy running out of air and fiscal cooperation is dead.  Lovely future.

Wed, 09/21/2011 - 14:42 | 1693557 papaswamp
papaswamp's picture

Fed does nothing new just moves some ching around. So it is up tpo the politicians kids...and we know where that will lead. Time to start packing the sailboat.

Wed, 09/21/2011 - 14:43 | 1693559 wisefool
wisefool's picture

Hide your wife. Hire your kids. The IRS finally got the mandate they always wanted!

They like us, they really like us!

Wed, 09/21/2011 - 14:47 | 1693606 Temporalist
Temporalist's picture

whoops meant to reply below

Wed, 09/21/2011 - 14:42 | 1693560 Eireann go Brach
Eireann go Brach's picture

Didn't someone in the housing industry tell Bernanke that 3.5% mortgage rates, or even 3% rates will not move the needle in housing period! FHA rates are at 3.75% right now and buyers are on the sidelines still. But of course the idiot PHDs sit around their oak table and think they really know how to solve the problems in the housing market! They have no fucking clue!

Wed, 09/21/2011 - 14:47 | 1693615 Temporalist
Temporalist's picture

I love how they say stuff like "It's a great time to buy a house as rates are at historic lows" without considering that people can't afford to buy no matter what the rate is...maybe if it was a ZIRP rate they would...

Wed, 09/21/2011 - 14:47 | 1693623 WonderDawg
WonderDawg's picture

The housing market will not recover as long as prices are artificially propped up. Let the market clear and come back down to prices at 2X median income and maybe then we'll see some recovery. Of course, to do that would blow up the banks, so don't count on it.

Wed, 09/21/2011 - 14:54 | 1693728 chet
chet's picture

+1

The consumer doesn't give a crap what interest rates are.  Especially if you're current house is $100k under water. Pushing on a string.

Wed, 09/21/2011 - 15:29 | 1694010 Thepnr
Thepnr's picture

When will they realise the housing market is a symptom of the problem, not the problem itself, Dumbfcuks!

Wed, 09/21/2011 - 21:28 | 1695346 Temporalist
Temporalist's picture

Because all the debt chips have been gambled on housing and RE which is why Fannie and Freddie are still alive and the Fed owns so much debt related to mortgages and why BAC, Wells, Citi are all shit.  Housing was their big bet and they lost and can't let it collapse more because every of the kleptocrats will be hurt.  Poor kleptocrats can't admit their gamble lost.

Wed, 09/21/2011 - 14:43 | 1693563 sbenard
sbenard's picture

Wall St got the minimum of what it wanted. I think they were hoping for more. QE is welfare for Wall St. Sorry, Wall St, the taxpayer trough is limited in depth!

Wed, 09/21/2011 - 14:43 | 1693564 Mrs Kensington
Mrs Kensington's picture

SheepDog you were right!  I salute you!

Gold down, dollar up, stocks also dooon!  GOPs are in the ascendant (not a good or a bad thing as yet), as are US citizens, chinese, right thinking folk everywhere.  Wait till the Asian do their overnight block vote thang.........

Wed, 09/21/2011 - 14:43 | 1693567 Jack Burton
Jack Burton's picture

Lower long term interest rates are bullish for housing. The bottom is in, now is a good time to buy.  Brought to you by NAR and you know you can trust them when it comes to the housing market.

Bernanke is a god damn genious! Or maybe not.

Wed, 09/21/2011 - 14:45 | 1693569 Archimedes
Archimedes's picture

Ha! The Fed is now totally impotent! Did what everyone thought they would do because they could not do anything else! This will do nothing for the economy. The Fed is scared as hell to expand the balance sheet!

Even the algos don't like it. The deflationary depression is back on folks!

Wed, 09/21/2011 - 14:43 | 1693572 junkyardjack
junkyardjack's picture

Down goes Gold, Down goes Gold

Wed, 09/21/2011 - 18:48 | 1694911 DavidAKZ
DavidAKZ's picture

In Australian dollar terms - up goes gold

Wed, 09/21/2011 - 14:43 | 1693574 SaveTheGreenback
SaveTheGreenback's picture

I guess I'll just keep holding TBT....screw you, Benny!

It will be a painful roller coaster ride but rates will skyrocket when the ponzi hits the fan and hyperinflation comes....

Wed, 09/21/2011 - 14:43 | 1693575 Duffminster
Duffminster's picture

Basically the Fed isn't doing anything but shifting assets around.  The situation isn't static and extending maturity rates.  The Fed will do what they can to keep the global financial system from deteriorating at an even faster pace than it seems it inevitably must and that within the paradigm within in Ben's head, which is based on a lot of outdated concepts in my opinion.

This is mostly MOPE and won't change one thing in terms of the macro picture.   The FED will ultimatley have to expand their balance sheet or just let the global financial system collapse.  Its only a matter of time.   The mainstream financial media acts like this is a binary event and the end all be all of Fed operations.  What a joke.

Wed, 09/21/2011 - 14:45 | 1693576 Duffminster
Duffminster's picture

Basically the Fed isn't doing anything but shifting assets around.  The situation isn't static and extending maturity dates will have temporary but unlikely substantial lasting effect given the underlying economic conditions.    The Fed will do what they can to keep the global financial system from deteriorating at an even faster pace than it seems it inevitably must and that within the paradigm within in Ben's head, which is based on a lot of outdated concepts in my opinion.

This is mostly MOPE and won't change one thing in terms of the macro picture.   The FED will ultimatley have to expand their balance sheet or just let the global financial system collapse.  Its only a matter of time.   The mainstream financial media acts like this is a binary event and the end all be all of Fed operations.  What a joke.

Wed, 09/21/2011 - 14:47 | 1693578 Dr. Engali
Dr. Engali's picture

It will work this time. I promise. Now that it is here the yield on the 30 year will go up.

Wed, 09/21/2011 - 14:44 | 1693579 Lord Welligton
Lord Welligton's picture

The ever expanding Central Bank Balance Sheet.

 

Wed, 09/21/2011 - 14:44 | 1693580 unky
unky's picture

Gold and Silver trade like a YoYo

Wed, 09/21/2011 - 23:35 | 1695602 IQ 145
IQ 145's picture

Time Flys like an arrow                                                         Frruit Flies like a bananna.                                                                                                                                                                                                                     

Wed, 09/21/2011 - 14:46 | 1693583 vast-dom
vast-dom's picture

Teh Fed BROKE THE LAW TODAY, AGAIN.

 

FUCK YOU FED

FUCK YOU BERNANK

FUCK YOU OBUMMER

FUCK YOU DEMS

FUCK YOU REPUBS

FUCK YOU TWIST

FUCK YOU STATUS QUO

 

And allow me to add that all of the toxic garbage they bought and printed will be rolled into ILLEGAL Fed DERIVATIVES which break the law to the motherfucking Nth degree a la CDS's etc etc etc. I'd be outraged if I wasn't convinced that the gov backed Ponzi $kaM will collapse shortly. 

Wed, 09/21/2011 - 14:48 | 1693632 SheepDog-One
SheepDog-One's picture

Exactly right this is outright TREASON!

Bernank said he'd never monetize the debt, thats all this is so clear even a caveman can see it!

Wed, 09/21/2011 - 14:59 | 1693780 espirit
espirit's picture

You long paper?

Wed, 09/21/2011 - 14:44 | 1693584 Gold Man-Sacks
Gold Man-Sacks's picture

How is the Fed supposed to keep short-term interest rates down for two more years if they're selling short-term treasuries to purchase longer-term ones? 

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