Bad form Fed

Cancel 2016.2

Cancel 2016.2

The Almighty
The Federal Reserve today decided to maintain its policy of buying $85B in bonds each month rather than tapering off as the market expected by $10-15B per month.

This is blatantly stupid. Why continue pumping up the next bubble?

For all the conspiracy theorists... the stock market and gold began spiking up about three minutes BEFORE the announcement. Yet every major bank economist was projecting the $10-15B in cuts. Hmmm...
 
I don't know enough about economics to understand the Fed policy on this at all. But, I know people who DO know more about economics, and they're absolutely terrified about what the Fed is doing.

Just intuitively, it doesn't seem like a good thing.
 
Thing1 said:
I don't know enough about economics to understand the Fed policy on this at all. But, I know people who DO know more about economics, and they're absolutely terrified about what the Fed is doing.

Just intuitively, it doesn't seem like a good thing.
Click to expand...

the market was primed and ready for them to slow down the bond buying. The stupidity involved in not doing so here is indeed dangerous. Why tell the market you are going to do so, get the market ready for it, then not do it?

Add in the unusual spike prior to the actual data release and you have plenty of ammo for conspiracy peeps... in this case, they are right. Someone knew ahead of time.
 
Am I understanding what the Fed said correctly? They revised slightly downward their future growth projections. Interest rates won't rise until 2015 at the earliest. Unemployment to be under 6% by the end of 2016.
 
cawacko said:
Am I understanding what the Fed said correctly? They revised slightly downward their future growth projections. Interest rates won't rise until 2015 at the earliest. Unemployment to be under 6% by the end of 2016.
Click to expand...

The actual commentary from the Fed went something like this:

:derp:.... DERP DERP
 
cawacko said:
Am I understanding what the Fed said correctly? They revised slightly downward their future growth projections. Interest rates won't rise until 2015 at the earliest. Unemployment to be under 6% by the end of 2016.
Click to expand...

By then who will be working full time?
 
For once in his pitiful life supercandy is correct, its time for the fed to start easing the easing.
 
Drunk at the punch bowl is the analogy I like to describe the current Fed.

SF, since the markets generally follow the signals given out by the FOMC does this decision not to taper risk the group's credibility at all going forward?
 
Thing1 said:
I don't know enough about economics to understand the Fed policy on this at all. But, I know people who DO know more about economics, and they're absolutely terrified about what the Fed is doing.

Just intuitively, it doesn't seem like a good thing.
Click to expand...


Well, you're either reading the wrong economists or hanging with people that think and act like they know a lot about economics but really don't.
 
There is no sound economic reason for tapering. Unemployment is still way too high and growth is still way too slow to back off.
 
Dungheap said:
Well, you're either reading the wrong economists or hanging with people that think and act like they know a lot about economics but really don't.
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Translation: 'please only read Krugman and other hard core spend at will faux Keynsians, cause they tell me what to think and if you read other non partisan economists it may make me look foolish and cause me to respond with drivel'
 
Dungheap said:
There is no sound economic reason for tapering. Unemployment is still way too high and growth is still way too slow to back off.
Click to expand...

So falsely propping up the stock market and creating another bubble is your idea of sound policy? Forcing rates to remain low for long periods of time, yeah, nothing bad ever came from that... oh wait... 2008
 
cawacko said:
Drunk at the punch bowl is the analogy I like to describe the current Fed.

SF, since the markets generally follow the signals given out by the FOMC does this decision not to taper risk the group's credibility at all going forward?
Click to expand...

I think the markets initial reaction was knee jerk, the fed HAS to stop this nonsense eventually. But yes, this does hurt their credibility a bit. The market had priced in the slow down of 'QE forever' that dung thinks works.
 
Superfreak said:
So falsely propping up the stock market and creating another bubble is your idea of sound policy? Forcing rates to remain low for long periods of time, yeah, nothing bad ever came from that... oh wait... 2008
Click to expand...


You're right. We should make the economy worse so the economy doesn't get worse.
 
Funny none of you assholes saw the last mess you created coming.

Your too stupid for anyone to take you seriously
 
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