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Labor market softening. Why taper at all?

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Comments (10)
  • Jake2992
    , contributor
    Comments (825) | Send Message
     
    A lot of people are going to be caught off guard when this market goes down despite ongoing QE.
    23 Oct 2013, 09:26 AM Reply Like
  • rambler1
    , contributor
    Comments (678) | Send Message
     
    Maybe the Fed could buy all the debt & retire it. It's only a shell game anyway.
    23 Oct 2013, 09:27 AM Reply Like
  • RS055
    , contributor
    Comments (3644) | Send Message
     
    The Treasuries bought by the Fed are effectively "retired" anyway - whether or not they formally announce it.
    23 Oct 2013, 02:32 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9798) | Send Message
     
    You have a better chance of watching Yellen win the NBA MVP award than watching her announce a taper.

     

    She will expand QE to @ least a quarter trillion dollars in bond purchases per month by the time Obama heads back to Chicago to build his library.
    23 Oct 2013, 09:30 AM Reply Like
  • American in Paris
    , contributor
    Comments (5494) | Send Message
     
    You should write a novel.

     

    Yellen is not a dove the way the radical American Right has painted her. She just understands that the Central Bank has a dual mandate.

     

    Yellen does not change the odds of tapering. She and Bernanke both consider tapering inevitable.
    23 Oct 2013, 12:44 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9798) | Send Message
     
    Yellen is an Ultra-Dove. The odds have changed immensely due to her appointment.

     

    If Bernanke, who "considered tapering inevitable" never tapered then what evidence is there that a super dovish head like Yellen ever will?
    23 Oct 2013, 02:06 PM Reply Like
  • Yorick
    , contributor
    Comments (596) | Send Message
     
    I agree DVL, and agree with Marc Faber, the next change to Fed purchases will be to buy more in reaction to some Chinese or European "black swan" issue vs. taper...our current muddle through is what should have always been happening sans bubbles. With 10K boomers retiring with no savings, wage stagnation, inflation, there is no way Fed tapers any time soon. This having been said, I believe there is some point where not only is the Fed painting itself into a corner but starts painting its shoes as well as there are no more MBS to buy...
    23 Oct 2013, 09:54 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (9798) | Send Message
     
    When they start running low on MBS and T-Bonds to buy they will start buying AAA, AA+ and AA corporates.
    23 Oct 2013, 10:41 AM Reply Like
  • dreamhomes4edu
    , contributor
    Comments (7) | Send Message
     
    The QE is not helping the general economy anyway. It is helping the banks and the market but not mainstreet one bit. It is based on a "Trickle down model" and is not getting down to the middle class or poor and thus it will not create jobs because companies do not hire people they don't need just because there shares are up. They hire to keep up with production or increase market share which happens when the poor and middle class have money to spend and they spend it. As long as QE is being distributed from the top down it will have little to no positive results for the economy as a whole.
    23 Oct 2013, 11:40 AM Reply Like
  • HPBunker
    , contributor
    Comments (219) | Send Message
     
    I think the Fed needs to start buying other stuff, too. For instance, I collect rare Pez dispensers. If the Fed started buying, say, 85 billion Pez dispensers each month, my collection would shoot up in value. That would generate a virtuous wealth effect, whereby I use some of my newfound "wealth" to buy new Pez dispensers, generating greater employment for the assembly line robots who manufacture them!
    23 Oct 2013, 12:31 PM Reply Like
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