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"It's not just talk," says Morgan Stanley's Stephen Jen of the Fed's recent chatter. "My...

"It's not just talk," says Morgan Stanley's Stephen Jen of the Fed's recent chatter. "My understanding is the Fed is determined to start tapering early ... Markets are not ready for this ... If the Fed does indeed move toward tapering, I fear this may be a long and dangerous summer."
Comments (10)
  • winningtrader
    , contributor
    Comments (2476) | Send Message
     
    Maybe his understanding is incorrect. Of course, we may see something tiny but it will mostly be just cosmetic.
    13 Jun 2013, 08:07 AM Reply Like
  • flemsnopes
    , contributor
    Comments (124) | Send Message
     
    Well, I hope Bernanke has already called his orthopedist and his local military surplus store, because he'll need a spine implant and a Flak Jacket before making the official announcement.
    13 Jun 2013, 08:12 AM Reply Like
  • Erwin van Wijk
    , contributor
    Comment (1) | Send Message
     
    Just talk. First see if Ben walks the walk.
    13 Jun 2013, 09:10 AM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Take the pain now; the markets will consolidate. The blowoff in the Nikkei was a warning of what can happen with manic power law gains over short periods, fueled by 'cheap' leverage.
    13 Jun 2013, 09:46 AM Reply Like
  • wykie722
    , contributor
    Comments (9) | Send Message
     
    This is a good thing- it's time that the fed stop pumping up the equity markets with the printing press. This is simply the fed trying to create the illusion of wealth out of thin air when in all reality, the rich get richer and the poor remain poor. Who does he really think he's helping by printing this money. It's not easy for the average family to get a home refinanced or to get low interest money like the big corporations. It's time to cut off the supply of amphetamines and let the markets stand on their own.
    13 Jun 2013, 10:14 AM Reply Like
  • Calder H. Lamb
    , contributor
    Comments (45) | Send Message
     
    When the pool starts to drain,

     

    People get the hell out of the pool.
    13 Jun 2013, 10:34 AM Reply Like
  • joeyjojo
    , contributor
    Comment (1) | Send Message
     
    Am I wrong or has Stephen Jen not worked at MS since 2009?
    13 Jun 2013, 10:34 AM Reply Like
  • june1234
    , contributor
    Comments (2499) | Send Message
     
    key word : leverage.
    13 Jun 2013, 10:59 AM Reply Like
  • nafar
    , contributor
    Comments (217) | Send Message
     
    I am reading lot of concerns about tapering of bond buying by Fed. If seen in proper context they are buying back the Treasury bills they sold earlier to banks. Then the money supply got decreased which they are now bringing back gradually. Further, even if they taper, liquidity created will not vanish. Currently still lot of liquidity is available for investment in the market. Why fear for something which is not there.

     

    If we see P/E of say S&P 500, it is still low against what has been historically high at a higher interest rate market. Bond buying will never be favorable unless there is a fear of total collapse of economy.

     

    I would appreciate if some one correct me if my assessment is not right.
    13 Jun 2013, 12:01 PM Reply Like
  • mickmars
    , contributor
    Comments (1323) | Send Message
     
    There won't be tapering unless "official" inflation is 4+%. This tapering garbage is just noise, just like the "ZIRP is ending" talk a few years ago....
    13 Jun 2013, 12:15 PM Reply Like
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