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The Fed rolls out yet another speaker to reassure the market its candy won't be taken away....

The Fed rolls out yet another speaker to reassure the market its candy won't be taken away. Governor Jerome Powell tells an audience spiking bond yields are larger than can be justified by any "reasonable assessment" of the path of FOMC policy. No doubt an accomplished man, Powell's bond fides as a fixed income trader are unknown. Earlier: Dudley.
Comments (9)
  • phildevoyd
    , contributor
    Comments (165) | Send Message
     
    The 'get your low rates now' effect may be a more powerful stimulus than an extension of QE. "Fed speak" does not allow them to say it that way.
    27 Jun 2013, 10:57 AM Reply Like
  • Joe2922
    , contributor
    Comments (436) | Send Message
     
    The markets, both stocks and bonds, are bigger than Fed and any other CB. Major top has been forming in last man standing and today an official SELL signal:
    http://bit.ly/WpVqYk
    27 Jun 2013, 11:31 AM Reply Like
  • youngman442002
    , contributor
    Comments (5129) | Send Message
     
    Its weird how there are so many different interpretations on the FED...if this was a company the stock would go to zero....to many stories being told....I wonder why....I think it was a test balloon...now they are scared to death..because they know if they do taper..it will crash the markets....and bankrupt the country
    27 Jun 2013, 11:01 AM Reply Like
  • CaladesiKid2
    , contributor
    Comments (276) | Send Message
     
    If the only factor preventing bankruptcy of the country is Fed speak then the outcome is known, only the timing is speculative.
    27 Jun 2013, 12:35 PM Reply Like
  • montanamark
    , contributor
    Comments (1452) | Send Message
     
    you can never tell just one lie. they are reaping what they sow - after so many lies and contradictions even their most loyal supporters will defect
    they have been talking about the "improving economy" for 4 years - how stupid can people be????????????
    its so "strong" that if they even hint at maybe, thinking about easing up on the drug, the market tanks
    27 Jun 2013, 11:07 AM Reply Like
  • tom_t
    , contributor
    Comments (286) | Send Message
     
    But the market didn't "tank" all that much. Apparently, even a 5% drop is unacceptable to Ben. Have to keep giving the junkies their fix no matter what.

     

    This is going to end badly.
    27 Jun 2013, 11:30 AM Reply Like
  • montanamark
    , contributor
    Comments (1452) | Send Message
     
    at the beginning of may $usb was 149ish - now its at 134ish
    billions were lost; look at the smashing of mreits, hi yield, hi div, etc
    funds lost big and now they are being whip sawed with non stop fed chatter
    27 Jun 2013, 11:37 AM Reply Like
  • mobyss
    , contributor
    Comments (2278) | Send Message
     
    Desperation. Pure desperation and panic that the entire house of cards will crash down.

     

    The Fed can NEVER get out now. They need to monetize essentially 100% of the deficit and likely buy 95% of all mortgages or rates rise and it's game over.

     

    A couple of months ago those that said QE can never end were mocked as gloom-and-doom pessimists but look at it now - if the Fed even BREATHES a word about tapering QE the ten-year rate jumps by 50% and global equities melt down. And then the Fed must go on a five-alarm media blitz to PROMISE not to end QE anytime soon.

     

    How does this end?
    27 Jun 2013, 01:35 PM Reply Like
  • sparker561
    , contributor
    Comments (98) | Send Message
     
    Just some questions:

     

    Isn't the market rational and efficient over the long term ?

     

    If it is, won't the market make a rational adjustment to the Fed's ending QE?

     

    Aren't the long term interests of shareholders, and viable companies, well served when over-reactions shake out weak shareholders?
    27 Jun 2013, 09:31 PM Reply Like
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