May 3rd, 2012

Fed unanimous in "no QE3...yet"

The expectation that moderate U.S. economic growth will continue to create jobs is feeding optimism among Federal Reserve policymakers that they won't need to resort to a controversial third round of bond buying to stimulate the recovery.

Stocks fall 10.5% as "growth" ironcially stops the very day (to the hour, actually) the FED says they're not printing money anytime soon.

June 1, 2012

Stocks in correction

The S&P 500 (SPX) index is down nearly 10% from its most recent high in April, which means the broad stock market is approaching what investors call a correction.

the Federal Reserve is widely expected to step in if ~~the stock market~~ economic conditions continue to deteriorate.

June 4th, 2012

Hedge funds lose money as commodity prices fall 26%

(I.E.Wall Street struggles as Main Street gets a price break at the grocery store and gas pump)
The European Central Bank rejected a plan to recapitalize Bankia group, Spain’s third-largest lender.

Europe has “thrown a wet blanket on speculators’ desire to hold risk” (I.E. "If you don't give us a risk-free one-way guaranteed market by printing money we'll take our ball and go home")

Investors pin hopes on central bankers

There is a sense of impending doom on Wall Street, and investors are hoping central bankers will brighten the mood with some stimulus next week.

"It's all about the Fed next week," said Keith Springer, president of Springer Financial Advisors in Sacramento Calif. "If the Fed comes through with a QE program, that could save the market -- if not the market will fall off a cliff."

The U.S. central bank has already bought trillions of dollars worth of Treasury debt under its quantitative easing strategy. It has also been using proceeds from assets in its portfolio to buy U.S. bonds in a program code named Operation Twist, which ends later this month.

"The economy is slowing down and stimulus is waning," Springer said. "The Fed needs to do a full-blown QE where they print money, but I don't think they will do that."

Bernanke rarely says anything explicit about stimulus, but investors will parse his every word for hints. The Fed's policy committee will meet on June 19 and 20.

Goldman Sachs increasingly confident of QE3 on June 20th 2:15 pm

"Our confidence that the FOMC will ease policy once more at the June 19-20 meeting has also grown. Our baseline remains that Fed officials will purchase a mixture of mortgages and long-term Treasuries, financed by balance sheet expansion".

Gold gains on speculation central banks will print money

(I.E. your paper currency is about to become less valuable)

“We could see some form of easing”

Note the close below the key 200-day moving average June 3rd, the day the before the Goldman Sachs announcement.

June 6, 2012
NEW YORK (Reuters) - Stock index futures rose on Wednesday on signs that European officials are urgently exploring ways to rescue Spain's debt-stricken banks and on hopes of further stimulus from central banks. "With the ECB meeting today, the BoE tomorrow and the Bernanke testimony on the economy on Thursday as well, markets again look to central bankers like dogs to pieces of meat. Will the dog get the meat and will it taste as good?" said Peter Boockvar, equity strategist at Miller Tabak + Co in New York

NEW YORK (Reuters) - Stocks jumped on Wednesday, giving the S&P 500 its best day since December, as talk of a rescue of Spain's troubled banks and hopes for more monetary stimulus sparked a rebound from recent selling.

June 7th, 2012
NEW YORK (CNNMoney) -- World markets surged over international optimism that governments are leaning toward stimulus to boost the economy.
Though this sentiment is largely speculative, given the lack of action this week from the European Central Bank.

June 8th, 2012
Stocks struggle, disappointed by Bernanke

NEW YORK (CNNMoney) -- U.S. stocks struggled at the open Friday on investor disappointment that Federal Reserve Chairman Ben Bernanke did not signal that more stimulus is on the horizon. (I.E. "If you don't give us a risk-free one-way guaranteed market by printing money we'll take our ball and go home")

June 12th, 2012
Fed’s Evans Says He Would Support Various Stimulus Plans
U.S. index futures rose on speculation policy makers will do more stimulate the economy.

Federal Reserve Bank of ChicagoPresident Charles Evans said he would support a variety of measures to generate a ~~higher stock market~~ faster job growth, underscoring his preference for more stimulus. “I’ve been in favor of pretty much any accommodative policy I’ve heard about,” Evans said. “Extending the Twist would be useful. More asset purchases would be useful. More mortgage-backed securities purchases would be good.”

June 14th, 2012
Dollar Falls After CPI on Fed Easing Speculation
(I.E. your paper currency is about to become less valuable)

“There’s nothing about the U.S. data that makes you want to own the dollar,” said Kit Juckes, head of foreign-exchange research at Societe Generale SA in London. “You’ve got an economy that’s growing slowly, an inflation rate that’s going to come lower, and a central bank with an itchy trigger finger to give us more quantitative easing.”

It's Do or Die for U.S. Stocks

Whether it is confirmation by Fed Chairman Ben Bernanke that he will print more money or the pending elections in Greece, the news should spark a technical breakout or breakdown, respectively. Therefore, we should watch 1337 above and 1306 for clues on where the market wants to go.

June 15th, 2012
Stocks: Central banks give markets a lift
NEW YORK (CNNMoney) -- U.S. stocks were poised to follow global markets higher as central banks in Europe signaled they would provide more cash

World’s Richest Gain $16 Billion as Global Markets Rise
The 40 richest people on the planet added a combined $15.7 billion to their collective net worth this week as markets rose on speculation that central banks will take steps to boost the global economy. Spanish retail tycoon Amancio Ortega, 76, became Europe’s richest man on June 13, after shares of Inditex, the world’s largest clothing retailer, surged 12 percent in a day. Ortega’s ascent came as Spain asked to borrow 100 billion euros ($126 billion) from European Union rescue funds last weekend to recapitalize its banking system. He is worth $40.1 billion.

June 19th, 2012
Despite Election, Helicopter Ben Will Arrive This Year
Bernanke's policy from day one has been to inject money into the system by any means necessary. Bazooka Ben pulling the trigger on more stimulus so close to an election would be controversial. Bernanke has "absolutely left the door to open to more easing" and she expects to see it by September, despite this being an election year.

Wall Street rallies on hopes for central bank move

The S&P 500 has gained more than 7 percent from a five -month low hit earlier in June, and is on track to close above its 50-day moving average for the first time in seven weeks. But the sharp gains also leave the market vulnerable if the outcome of Wednesday's Fed meeting doesn't meet market expectations.(I.E. "If you don't give us a risk-free one-way guaranteed market by printing money we'll take our ball and go home")

June 21st, 2012

Commodities Fall to Lowest Since 2010 as Fed Cuts Outlook

Commodities were poised to enter a bear market as U.S. reports on manufacturing, jobless claims and home sales signaled a faltering economy after the Federal Reserve ~~didn't devalue your dollars by printing more of them~~ refrained from announcing another round of stimulus.

June 22nd, 2012

"Pretty high hurdle" to QE3: Fed's Bullard

(Reuters) - Federal Reserve policymakers still see a "pretty high hurdle" before they would unleash a third round of quantitative easing, or QE3, a top Fed official said on Friday. "I do not believe that further monetary stimulus would make a substantial difference for economic growth and employment without increasing inflation by more than would be desirable," Lacker said in a statement.
The Fed has kept rates ultra low since late 2008 and has made a conditional pledge to keep them there through at least late 2014. It has bought more than $2 trillion in assets in two rounds of quantitative easing, QE1 and QE2, to battle the recession.

July 5th, 2012

Central Banks Deliver 45-Minute Salvo as Growth Weakens

In a 45-minute span, the European Central Bank and People’s Bank of China cut their benchmark borrowing costs, while the Bank of England raised the size of its asset-purchase program. They acted two weeks after the Federal Reserve expanded a program lengthening the maturity of bonds it holds and ChairmanBen S. Bernanke indicated more measures will be taken if needed.

Mon Jul 9, 2012 1:17pm EDT

(Reuters) - The U.S. Federal Reserve is prepared to do more to bring down unemployment that is far too high and to steer inflation back up to the central bank's 2 percent target, a top Fed official said on Monday. Williams set the table for further easing, saying the Fed was missing its goal of fostering maximum employment and was at the same time undershooting its inflation goal. "If further action is called for, the most effective tool would be additional purchases of longer-maturity securities, including agency mortgage-backed securities," Williams said.
"We stand ready to do what is necessary to attain our goals of maximum employment and price stability."

Your Federal Reserve "free market" in action.

Glossary

Bank Rescue: Stealing money from taxpayers to subsidize gambling losses by bank executives, so they can continue gambling.
Asset Purchases: Printing More Money
Balance Sheet Actions: Printing More Money
Balance Sheet Expansion: Printing More Money
Bond Buying: Printing More Money
Security Buying: Printing More Money
Easing: Printing More Money
Quantitative Easing: Printing More Money
Central Bank Stimulus: Printing More Money
Government Stimulus: Borrowing Money the Central Bank just printed
Central Bank "refusing to recapitalize": Not Printing More Money
Government "withholding stimulus": Not Borrowing Money the Central Bank just printed

Sources:

Roblog

We make money the old fashioned way...

Tuesday, June 5, 2012

QE3...the setup.

Wall Street rallies on hopes for central bank move

June 21st, 2012

Commodities Fall to Lowest Since 2010 as Fed Cuts Outlook

June 22nd, 2012

"Pretty high hurdle" to QE3: Fed's Bullard

July 5th, 2012

Central Banks Deliver 45-Minute Salvo as Growth Weakens

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Roblog

We make money the old fashioned way...

Tuesday, June 5, 2012

QE3...the setup.

Wall Street rallies on hopes for central bank move

June 21st, 2012

Commodities Fall to Lowest Since 2010 as Fed Cuts Outlook

June 22nd, 2012

"Pretty high hurdle" to QE3: Fed's Bullard

July 5th, 2012

Central Banks Deliver 45-Minute Salvo as Growth Weakens

Glossary

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About Me

Search This Blog