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.
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?
Update: The WSJ has a great Q/A on the legislation to audit the Fed here
Break the Matrix and Ron Paul will be totally psyched. I know we need to crack the opaque black box that is the lack of transparency of the Fed in many ways but I am also verrrry worried about what this will do to the financial markets…I do NOT want the TOTUS or the TREZ to get control of the Fed…Alexander Hamilton where are you?!
Courtesy of BreaktheMatrix
Read the article at http://bytestyle.tv/node/119
Federal Reserve Loses Bloomberg FOIA Lawsuit, Sensitive Disclosures Forthcoming
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Today’s theme seems to be Walk Like a Man…Ben is, Sheila Bair at FDIC told CIT just that, walk like a man baby without Uncle Sam baby..here’s hoping California and CALPERS do the same…
Ben giving his Humphrey Hawkins before the House Financial Services Cmte…
Live Feed from CNBC here
Ben’s WSJ Op Ed here. It outlines the Exit Strategy we have all been looking for. TOTUS may want to stick Summers in there but Ben isn’t going down quietly :) Ben has his ducks in a row. …
On Ron Paul’s audit bill, Ben said the following, and frankly I agree:
…he warned that pending legislation to subject the Fed to greater oversight by the Government Accountability Office could jeopardize the central bank’s independence if it extends to monetary policy.
“A perceived loss of monetary policy independence could raise fears about future inflation, leading to higher long-term interest rates and reduced economic and financial stability,” he said….
Cali has apparently reached a budget deal, some folks say it puts off the pain, but details are not forthcoming yet…
California Governor Arnold Schwarzenegger and top lawmakers said on Monday evening they had reached an agreement to close a $26.3 billion deficit to balance the state’s budget, ending weeks of lengthy and often tense negotiations….
…Schwarzenegger, a Republican, said during a news conference in front of his office that the budget would introduce no tax increases and would include $15 billion in spending cuts….Democratic leaders acknowledged the budget agreement contained painful spending cuts in popular programs, the result of mounting financial woes for California’s government since 2007.
…Fitch Ratings on July 6 cut its rating on California’s long-term general obligation bonds to BBB, or two notches above “junk” status, and kept the debt on watch for additional downgrades.
CIT has an offering ready to recapitalize itself sans Uncle Sam:
…In a regulatory filing, CIT said the cash tender offer for its outstanding floating-rate senior notes due Aug. 17 was the first step in its recapitalization plan.
The lender said it could file for bankruptcy if the offer does not succeed. The offer, disclosed on Monday, is $825 for each $1,000 principal amount of notes tendered on or before July 31….
Sadly looks like the PBGC may be bailing out pensions now, are union pensions exempt? I hope so!! Get a load of this breaking WSJ headline:
Calpers reports a decline of 23% for fiscal 2009; assets decline $56 billion to $181 billion.
Don’t come cryin to me California Pension Holders, my 401k is awash in red ink, taxpayers have no money to give you…take the losses like we do…walk it off ….
Wanderers- Frankie Valley montage courtesy of eluparf
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*
DOW closes up 91 to 7487, S & P up 16 to 794, NAS up 29 to 1491, and MiM also has calls to their bank to refi off the FED news :0)
Airtime: Wed. Mar. 18 2009 | 11:17 AM ET
The Fed funds rate remains unchanged at 0.0 to 0.25%, reports CNBC’s Hampton Pearson. Pimco’s Bill Gross and CNBC’s Steve Liesman share their insight
Wed. Mar. 18 2009 | 11:43 AM ET
Tobias Levkovich, Citi chief U.S. equity strategist, discusses the Fed’s decision to leave its key rate unchanged.
CNBC Steve Liesman breaking live…
Fed FINALLY launches the TALF!! (Term Asset-Backed Securities Loan Facility), here’s hoping this gets some commercial paper moving….
TALF to initially provide up to $200 billion in financing for new auto, credit card, student and small business loans
Fed reduces rates and haircuts on small business and student loans from original plan (has decided less risk of default)
Fed analysing expanding TALF to CMBS (commercial mortgage backed securities) and other assets such as CLOS, CDOS (collateralized debt obligations), along with Private Label mortgage backed securities..