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Old 12-18-2013, 01:47 PM   #1
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FED to reduce bond buying

http://finance.yahoo.com/news/fed-fa...051027295.html

"...the central bank said it would reduce its monthly asset purchases by $10 billion, bringing them down to $75 billion. It trimmed equally from mortgage and Treasury bonds."

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Old 12-18-2013, 02:33 PM   #2
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We'll see how long that lasts.
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Old 12-18-2013, 03:59 PM   #3
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Originally Posted by benjamen View Post:
http://finance.yahoo.com/news/fed-fa...051027295.html

"...the central bank said it would reduce its monthly asset purchases by $10 billion, bringing them down to $75 billion. It trimmed equally from mortgage and Treasury bonds."

didn't someone JUST SAY that they would reduce by a token 10 B while upping hidden purchases?
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Old 12-18-2013, 04:35 PM   #4
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...

10-Year Treasury yield is up to 2.89%. So bond holder did not hear the news they wanted.

Dow up to over 16,100. Like Barron's predicted... A new record.

Yet what I saw in SC recently (LOTS of vacant commercial real estate and LOTS of land for sale) as well as low outlet mall sales (anecdote by an employee there) say we are NOT out of recession.

***

Bernanke's disingenuous remark about unemployment rate at 7.0% is deceitful, the worker participation rate is near a record.

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DoChen sez:

"Bah, humbug! Save your money, fishez!"

(especially in shiny metals...)
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Old 12-20-2013, 01:46 PM   #5
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The feds already own too much of the MBS market...
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Old 12-21-2013, 08:58 AM   #6
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Originally Posted by DoChenRollingBearing View Post:
...

10-Year Treasury yield is up to 2.89%. So bond holder did not hear the news they wanted.

Dow up to over 16,100. Like Barron's predicted... A new record.

Yet what I saw in SC recently (LOTS of vacant commercial real estate and LOTS of land for sale) as well as low outlet mall sales (anecdote by an employee there) say we are NOT out of recession.

***

Bernanke's disingenuous remark about unemployment rate at 7.0% is deceitful, the worker participation rate is near a record.

***

DoChen sez:

"Bah, humbug! Save your money, fishez!"

(especially in shiny metals...)
In English the word Humbug refers to a person or item that tricks, deceives, talks, or behaves in a way that is deceptive, dishonest, false, or insincere.

Nah, wouldn't apply to the B.
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Old 12-21-2013, 10:53 AM   #7
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So, Da Boyzz are reducing the bond buying from 1.020 trillion a year to a mere 900 billion dollars a year. Well that eases my mind! What a load of crap! Are "they" still "twisting" the "profits" from all the crap they're purchasing back in to paper? If so, then the taper would be offset and meaningless in real terms. This is a shell came fellas', so beware.

It doesn't really matter what they do any more, since the game is near the end. It's a lot like monopoly, and when either the bank has all the money or some oligarch[s] end up with it all, the game is simply over. Unless of course, if someone gets mad and flips the board over in disgust and quits [think china] then the dynamic changes a bit.

If [when really] china calls in all that paper, we're in for a world of hurt. china need not fire a single bullet or put a single solider in harms way. They can destroy the USA with a phone call or two. By simply dumping a huge pile of our bonds and bills, they can effectively wipe us off the face of the earth. Of course we could always cease shipments of food, but then we would be talking about world war four.
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Old 12-22-2013, 09:17 PM   #8
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One thing I am baffled by- wasnt the euro backed by gold?
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Old 12-23-2013, 07:50 AM   #9
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No. It's never been backed by gold.

http://www.gold-eagle.com/article/euro
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Old 12-23-2013, 12:59 PM   #10
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I think the first line asset of the euro on audit reports is gold.

This is a fundamental difference between it and the US$ and is apparently its fundamental strength in a showdown in the currency wars.

Thats what I learned from Another and FOA when I attempted the gold trail as suggested by FOFOA.
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Old 12-30-2013, 07:29 AM   #11
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This is all fine and dandy, but the reality is that our economic situation is much more complex than how much the FED buys in bonds. Our economic problem is so much deeper than just bonds and how many fingers the government has in the pot. It is yet another ploy by the government to distract us from the reality of the situation. If anything, our government is at least a great magician. They should go on America's Got Talent because they are experts at having us look this way while they do something else that way.

They may cut spending here, but they will certainly make up for it with spending it else where. They blow through billions on things that we never even hear about. They distract us with Obama-care and things like cutting spending on bonds while they still spend billions on useless and pointless causes like the war on drugs. It drives me crazy to think about how irresponsible they are with our money. Most of what they do would land all of us in jail if we were to try the same thing.
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Old 12-30-2013, 08:09 AM   #12
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Originally Posted by donnygamble View Post:
This is all fine and dandy, but the reality is that our economic situation is much more complex than how much the FED buys in bonds. ...
A few years ago, I would have endorsed this 100% without equivocation, however, since the onset of QE, it's been clear even to a n00b like me that the Fed 's interventions has created enormous distortions in the financial markets and inverted the normal market response to economic data (bad is good - means more heroin from the Fed, good is bad, means less heroin from the Fed).

The Fed has done a tremendous job in coercing investment money to flow into equities despite the onerous implications of the (un)employment data.
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Old 01-02-2014, 02:26 PM   #13
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When I look at the 10 year from the point where QE infinity was announced and the point where tapering was announced, I see rates up 50% over one year. Stop and think about that for a moment. Even with the fed buying up 90% of the treasuries being issued, rates went up 50% from 2-3%. It's a farce.
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Old 01-03-2014, 02:44 PM   #14
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Originally Posted by PMBug View Post:
We'll see how long that lasts.
Until Yellen steps in and RAISES the amount of money printed every month.
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