The Next Shoe Drops ~ The Fed launches QE2, departure at 2:15pm ET

Update : FOMC announces $600B targeted toward the ‘long end’ 5-6 yrs, if they do it all yr + the reinvestment of previous purchases per NYFRB they should hit 1 Trillion.

ElErian says it will backfire and lead to QE3, PIMCO seems pixxed.

Update 11:15am ET: Gold is getting absolutely hammered. Down $25 to $1331.70. Appears the street thinks the Fed will pull its punch and disappoint. You know what I say? Good time to buy!

Were I the Fed I would move big now before Rand Paul takes my money printing machine away. Of course I think we should end the Fed at this point, they are propping up TBTF balance sheets and killing the middle class.

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QE2 is expected to depart the Federal Reserve steaming toward the TBTF balance sheets at a clip of $500B and further purchase announcements ‘as needed’ at 2:15 pm ET!

All Aboard for falling US Dollar and rising commodities!

I for one cannot WAIT for Ben Bernanke to face the righteous wrath of Senator Rand Paul on this monetizing and taking on worthless paper to bail out TBTF.Senator Paul will no doubt ask where Bernanke thinks he gets this authority and how it helps fulfill his dual mandate of price stability and full employment, which it does not.

Since the Dems were letting the middle class go down I say we all go down or not on our merits. Let the chips fall where they may, Damn the torpedoes! Full speed ahead! Let the TBTF frakkers fail~

As the guys on the street say, we need Potted Palms on the Trading Floor now that we are monetizing the debt a la Argentina pre collapse~

And the TERRIBLE AWFUL economic data continues to roll in. What will Team Obama do now?

November 2, 2010. Tags: , , , , , , , , , , , , . Economy, FDIC, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

Update: Issa says Fed in cover up, Bernanke to testify under subpoena..Market Mover: FOMC Decision and Statement…

Update 3: CNBC has the Issa story up here

Update 2: Dow as up 50 and now up 7 since FED announcement. I think the market is also scared shxt of what will happen as Congress goes after the Fed…that Issa announcement was simultaneous with the FED decision…

Update: Fed stands pat, rate unchanged, will maintain low rates for extended period (love you long time), removed the line about DE-flation, good finally! but NO EXIT STRATEGY. Bond rates up a bit as prices down a bit. Nothing in the stmt backed off quantitative easing at all, they reaffirmed it. If you are looking at it as a foreign holder of our debt, I see nothing here to reassure you, which to me suggests higher rates a comin’ from Bond Vigilantes…

Right before the announcement Darryl Issa R-CA came on CNBC backing a statement his office released saying Ben Bernanke and the FED had concealed concerns about the Merill BofA deal from OTHER REGULATORS, and Ben is appearing under subpoena to answer questions.

Not a good thing for market stability and as a shareholder I am biased on this. But if it is what I think it is, i think Bernanke and Paulson kept Sheila Bair and the FDIC in the dark on the potential losses for BofA if Merrill deal went thru..

if it helps FDIC get some of the power Team TOTUS is trying to give to the Fed (which will then promptly be given to Larry Summers in Jan) then I am all for it. the FDIC is the only regulator on the ball and Sheila Bair was warning about subprime exposure of broad market losses way ahead of everyone else…

anyway that is a WOW announcement that was buried in the FED release..Towns is trying to stop investigation into Countrywide VIP loans for Dodd and Conrad, but Issa is pushing as he can….

Best Market Lesson I ever Learned: DONT FIGHT THE FED*

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June 24, 2009. Tags: , , , , , , , , , , , , , , . Economy, Entertainment, Fantasy, Film, Finance, Housing, Music, Politics, Sci Fi, Wall St. Comments off.

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