Here's an image of who the Fed policy makers are, their position and where they stand on further QE. It might help to put some names in perspective. Source: http://graphics.thomsonreuters.com/F/10/scale.swf As can be seen the clear majority of members are in the "likely to favour further easing" camps. It would be a huge leap of faith in their theory of economics (not to mention loss of face) for them to jump into the other camp. So in my opinion, it'll be "hold this course and steady as she goes". Notice where "Bubbles" sits too, he's not the most "Dovish"!!!!
I'll be amazed if there isn't at last some decent selling come Monday on WS. There were rumours of these tightening comments in the afternoon (light selling at same period) but it wasn't released until 7 pm ish I believe. They'll have the weekend to spin it but I still think profit taking to some degree will come in Monday. Big question will be whether the metals sell off as well after coming back up from the lows today?
I hope they stop. But the Fed and the Parasite Gang behind it spends new dollars already since its creation. So I doubt it. But I certainly hope so. But what does stopping stimulus mean in reality? So far, 1769 billion dollar of the Feds stimuli never added to the amount circulating, and thus wasn't price-inflationary. So why would there be any need for further stimuli? The past ones were already way too much. The real question is what will happen with the current excess reserves. Those 1769 billion dollar. (in 2008 875 billion dollar circulated, and last month 1292). So the amount excess reserves is bigger than the amount circulating. 1769 versus 1292 billion. There are now two scenario's possible. 1) Excess Reserves gets destroyed (what is happening in the EU) and thus don't cause price increasings. 2) Excess Reserves gradually move into the economy, and do cause price increasings. So that focus on stop or not stopping of 'stimuli', is totally useless.
I just sold my pair of shoes! Hope to buy back two pair. I need now alot others to sell after me! Please please please people. Sell at lower prices than me! Give me the second pair of shoes!
2 years of QE has seen a bond market and stock market boom and PM prices have been falling Turn off the QE and PM prices will fall ? Somebody explain that thinking to me
They're expecting all those worthless dollars to be returned as other countries dump the US dollar. This is the only reason they're reducing stimulus.
^^ OzForex Daily commentary Bullard is a Centrist, Evans is a Dove - if Bullard thinks that QE should continue, then it's likely it will. The recent rise of the USD and fall in gold is based solely on speculation and rumour. All Bernanke has done has "Fed the chooks" and that's enough to have caused this recent market movement. USD to fall and gold to rise before end of financial year? Maybe sooner.
The US unemployment rate falling to 7.5% is BS. TPTB don't even count those that have no social security which lapses after one year. How many people on food stamps might indicate the state of the us economy,, Last figures I viewed it was approaching 50 million. It won't be pretty for the USA over the next 10 years. My scenario is for interest rates to rise, inflation to increase and the US to go the way of all fiat $$. down Regards Errol 43 At least they will be able to pay off that $17trillion debt!
(I climbed on the back of a giant albatross Which flew through a crack in the cloud To a place where happiness reigned all year round And music played ever so loudly) [youtube]http://www.youtube.com/watch?v=a77yHpjdUtU[/youtube] I'm sure they play this at the Fed's meetings
Simply because QE wasn't what was claimed it was. The bond and stock market and PM's being a frontrun, driven then further up by others, PM already partly exited by the ftontrunners, bond and stock market next. QE being the bogus story to bring that 'driven then further up by others', since without QE, those others would be less willing to pay the higher prices. QE made them willing. Give it some years and yay X dollars being shaken out from former bank depositors, and then they can allow some specific (debtdriven markets) prices inflation. http://finviz.com/futures_charts.ashx?t=YM&p=w1 S&P: double the bottom begin 2009 DJIA: dito NASDAQ: triple times the bottom Russell: 2,5 times the bottom Silver is now 2,4 times the bottom Gold is 2 times. So on. Things that move up more, also move down more. That's why every term (2 year as well as 5 year) should be taken into account when judging.
They've painted the country into a corner...and the paint ain't the fast-drying kind. the only way out is to get messy :/
Bubbles does his "testimony" thing at 12 midnight (our time) I think. If I had the energy I'd stay up and watch the charts, it'd be fun. They're moving upward, could be an interesting night, maybe a surprise when I wake in the morning.