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From the Bernanke NBER speech Q&A session: In response to a question regarding the...

From the Bernanke NBER speech Q&A session: In response to a question regarding the volatility in markets occasioned by the Fed's "contingent plan for reducing asset purchases" hinted at last month, Bernanke says he is "a big believer in transparency and communication" and asks listeners to consider the counterfactual - "if we hadn't said anything [and] market perceptions had drifted away from the Fed's thinking … more highly levered risk-taking positions" might have cropped up.
Comments (4)
  • Ben is trading our accounts for us lol
    10 Jul 2013, 04:53 PM Reply Like
  • Those highly levered positions have cropped up anyway. Try again, Ben. (Better yet, resign.)
    10 Jul 2013, 04:54 PM Reply Like
  • Odd to see the futures flying while he re-affirms that purchases will not cease as along as the data dictates that they are appropriate. Didn't they trot out the entire Board since his 'if you thought you understood what I said about scaling back purchase then you obviously misunderstood me' mea culpa to ensure that we all know that the buying is not likely to go away any time soon?

     

    S&P's up 12 from the close......up 30 by sunrise?
    10 Jul 2013, 05:06 PM Reply Like
  • The highly-levered run-up of futures on the news of no scale back is not "odd." Let's not forget the highly-levered run-up of WTI on a reduction of imports and a frenzied chase to reduce the Brent-WTI spread. Frothy is frothy.
    10 Jul 2013, 05:20 PM Reply Like
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