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That QE taper may end up being a QE expansion as FRBNY President Bill Dudley tells a gathering...

That QE taper may end up being a QE expansion as FRBNY President Bill Dudley tells a gathering in Japan the uncertain economic outlook has him unsure if the next move will be up or down. He worries about investor over-reaction to a "normalization" of policy and suggests the FOMC may need to update what it needs to see to move in that direction. Stocks like the "up" talk, the S&P 500 (SPY +0.4%) at a fresh session high.
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Comments (29)
  • cyrus trask
    , contributor
    Comments (171) | Send Message
     
    Expanding QE would be ridiculous and totally unnecessary in my opinion..
    21 May 2013, 01:34 PM Reply Like
  • Jason Burack
    , contributor
    Comments (1764) | Send Message
     
    US Dollar is getting too strong on the Dollar Index for the FOMC's liking. They are fighting a currency war and on all the BS measures from the BLS those are signaling deflation. It is obvious we do not need anymore QE to someone with common sense. Keynesian Economists lack any ounce of common sense.
    21 May 2013, 02:21 PM Reply Like
  • Interesting Times
    , contributor
    Comments (11549) | Send Message
     
    @CYRUS

     

    It's coming. They have no other choice !!
    21 May 2013, 03:42 PM Reply Like
  • apppp
    , contributor
    Comments (382) | Send Message
     
    makes it more likely then
    21 May 2013, 04:48 PM Reply Like
  • Aristiphones
    , contributor
    Comments (1327) | Send Message
     
    actually the market itself could force the Fed's hand. truly awesome display of "bubble mania." there are currently three in my view. "how is one to know whether an irrational exuberance is underway" indeed. we will simply ignore the part that says "when the policy is to create asset bubbles and succeed" of course since "the Fed will say nothing then." the amount of wealth creation these last four years have been the most in the history of the United States. nothing even remotely comes close...not even the 20's, not even the 80's, not even the 90's. can it translate into an actual economic recovery worthy of the name? this Administration's existence is riding on it in my view. my view as to what the Chairman will say tomorrow is "no date certain" or "the end of forever." we shall see...
    22 May 2013, 01:22 AM Reply Like
  • fourchan
    , contributor
    Comments (80) | Send Message
     
    i suspect the bubble market in stocks is actually the banks buying since 2009 with their zirp funds.
    they received these funds from the fed in exchange for all the bad mbs and god knows what else.
    so we the tax payer now own mbs trillions worth, the banks own all the productive companies and
    we the people are all debt slaves.

     

    the fed res "system" is working perfectly as it has for the last 100 years.

     

    what is the definition of treason?
    22 May 2013, 02:34 AM Reply Like
  • wapiti
    , contributor
    Comments (711) | Send Message
     
    If QE is so necessary....why does the stock market go to all time highs?? Obviously, a true disconnect between main street and wall street. I think it's amazing all the good cop-bad cop Fed governors saying something different every other day and the market moves on every word
    21 May 2013, 01:43 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    There are no "good cops" on the FOMC.
    21 May 2013, 01:47 PM Reply Like
  • denisgustin
    , contributor
    Comments (2) | Send Message
     
    the race to money devaluation goes on... and we are supposed to believe it's not the objective of the whole money printing...
    21 May 2013, 01:59 PM Reply Like
  • jamesvclark34
    , contributor
    Comments (17) | Send Message
     
    Looks like more easing is coming with "we will continue to watch closely to determine when to take the punch bowl." Plus it will be a slow weaning process.
    21 May 2013, 02:14 PM Reply Like
  • Deney_Terrio
    , contributor
    Comments (246) | Send Message
     
    They won't pull the plug on this party until all of the kids (Mr. & Mrs. Mainstreet) are in the tub.
    21 May 2013, 02:19 PM Reply Like
  • SoCalNative
    , contributor
    Comments (496) | Send Message
     
    Sure. Why not?
    21 May 2013, 02:19 PM Reply Like
  • mooserocky
    , contributor
    Comments (7) | Send Message
     
    It seems to me that a QE expansion might be like giving a dead horse medications. What needs to be done is, "bury the horse."
    21 May 2013, 02:24 PM Reply Like
  • mobyss
    , contributor
    Comments (2044) | Send Message
     
    The economy is on QE life support, and cannot be taken off. People still think the end game is "physical therapy" and an economy that can walk on its own again, but the Fed is telling us that they are ready to move the patient down into the basement and keep it hooked to machines for the next twenty years, like Japan has.
    21 May 2013, 02:27 PM Reply Like
  • wapiti
    , contributor
    Comments (711) | Send Message
     
    true mobyss....just like 0% car loans...never will they go back up...people will balk at them forcing them to come back down...thre FED has created a real problem...not sure they know how to exit w/out it being a DISASTER
    21 May 2013, 02:35 PM Reply Like
  • evan.prospect
    , contributor
    Comments (694) | Send Message
     
    I didn't get a 0% car loan but 3.99% is not bad (with about 25% down).
    22 May 2013, 01:34 AM Reply Like
  • yliu54
    , contributor
    Comments (170) | Send Message
     
    Expansion...Okay let's see how the end it up/
    21 May 2013, 02:57 PM Reply Like
  • Lakeaffect
    , contributor
    Comments (1049) | Send Message
     
    This is getting funny. Last week the market was too hot so they trot out the "taper". Last couple days markets were lethargic and flat, so we get "expand".

     

    Draw the upper and lower bounds of the market channel and you can predict who is going to talk and what they're going to say.
    21 May 2013, 03:05 PM Reply Like
  • Deney_Terrio
    , contributor
    Comments (246) | Send Message
     
    Lake, Shhh! Don't give away Wall Street's secrets!
    21 May 2013, 03:10 PM Reply Like
  • Steve B. Wise
    , contributor
    Comments (122) | Send Message
     
    These FED dipsh*ts need to get their stories straight. Are they going to taper, expand, or do nothing?
    21 May 2013, 03:24 PM Reply Like
  • Interesting Times
    , contributor
    Comments (11549) | Send Message
     
    Did anyone expect anything else from these Keystone cops??
    21 May 2013, 03:40 PM Reply Like
  • mickmars
    , contributor
    Comments (1323) | Send Message
     
    QE tapering story to follow.....
    21 May 2013, 04:01 PM Reply Like
  • apppp
    , contributor
    Comments (382) | Send Message
     
    whispered to hilsenrath obv.
    21 May 2013, 04:49 PM Reply Like
  • june1234
    , contributor
    Comments (2694) | Send Message
     
    Sunny blue skies , no tornadoes and storms, no sunny and blue, no I say tornadoes and storms. If the fed pulls its treasuries support investors will need an incentive to pick up the diff or higher rates or in Fed speak "investor overreaction"
    21 May 2013, 04:16 PM Reply Like
  • amscott8
    , contributor
    Comments (31) | Send Message
     
    odds of expanding QE, 0%
    21 May 2013, 06:15 PM Reply Like
  • bjamesh
    , contributor
    Comments (113) | Send Message
     
    "Normalization"... My memory barely goes back that far. I think it was 1997 ~ just before the dotcom PEs in the 100's, Greespan put, flipping houses, 3 letter acronyms, ...
    21 May 2013, 06:15 PM Reply Like
  • optionsexpert
    , contributor
    Comments (297) | Send Message
     
    "dotcom PEs in the 100's"

     

    Sounds like now.
    21 May 2013, 09:54 PM Reply Like
  • bjamesh
    , contributor
    Comments (113) | Send Message
     
    Those were the days. Henry Blodget, the new paradigm, the correct way to analyze Internet companies was not with PE ratios but the ratio of "engineers to sales" (assuming they actually had some), Warren Buffett was "yesterday's man", day trading. So many good memories.
    21 May 2013, 11:49 PM Reply Like
  • themayor
    , contributor
    Comments (49) | Send Message
     
    All they want is for you to consume, consume, consume. Then throw it all away so you can consume, consume, consume. So sick!
    21 May 2013, 07:35 PM Reply Like
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