Absurd Headline of the Day: Fed Winds Down Program That Saved the Economy
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32 comments on Absurd Headline of the Day: Fed Winds Down Program That Saved the Economy
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32 Comments
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2 years ago
Agree. But the announcement that there will be no price discovery in corporate bonds and the promise of infinite buying power to support the market is enough, regardless of the amounts spent. If the FED can credibly invoke its infinite purchasing power in any market, nobody will speculate on the any other outcome.
2 years ago
I wrote last year the problems would be worse if the Fed didn’t do anything. I still stand by that. The reason I expect them to prop up nearly any securities market is because the sheer amount of money from pension and other funds that is going to be slowly withdrawn as a large chunk of the population is able to do so.
2 years ago
You can write what you want but the Fed always has the last word.
2 years ago
CNN is just a mouthpiece for the government. They’ll say whatever the government wants them to say. When I say government, I’m not talking about the elected officials. I’m talking about the employees who run the branches. Who are overwhelmingly democrats. Doesn’t matter which party controls congress or sits in the oval office. The federal government is run by democrats. Has been for decades. Used to be the DOD was republican, but not any more. The democrats have become the war party and the DOD has switched allegiance.
2 years ago
Wonder why the DoD is no longer Republican.
2 years ago
“Check out how CNN beefed up a Fed lie that was unbelievable in and of itself.”
A lie amidst a litany of lies.
When are we ever told the truth? What is the Fed’s true agenda? We only know what their official narrative is.
Hillary once spoke to Goldman Sachs, while running for president. She spoke to them of her having a public policy and a private policy. Goldman Sachs was to be privy to the private policy, which was the actual policy, while the public was to be propagandized by the official narrative public policy.
We don’t know what is going on in secret behind closed doors.
“We have a strong dollar policy,” were the words spoken by the Bush Jr. Treasury Secretary, while the actual policy was a weaker dollar. It was a Snow job, by Secretary Snow.
2 years ago
During the 2016 campaign, I asked a Goldman Sachs attendee about Hillary’s talk. Essentially platitudes, and nothing that contradicted her public statements.
2 years ago
Why did they pay her so much money three times for platitudes?
2 years ago
She must still wield considerable influence, and they are wanting her to wield it on their behalf.
2 years ago
Or perhaps payment for past services?
2 years ago
Seems like the kind of service you’d want to get cash up front for, but I don’t move in such circles.
2 years ago
Or the hope of toning down any influence that might be used against them. Considerable $ to Hillary is pocket change to GS
2 years ago
I will take a jab at FED’s policy: they make it up as they go. The public statements are to put a lipstick on this secret.
2 years ago
“I do not believe that any one really knows when the piper must be paid.”
That the younger generation can’t afford a home or see an end to their college debt and are marching in the streets about it (although done under a made-up, false pretext), that is the downpayment owed the piper. The balance is still due and you probably won’t be around for it.
2 years ago
Today Zero Hedge had a headline stating that the Chamber of Commerce said that the lack of employees is creating an economic crisis. Another headline stated that some workers are quitting because they don’t want to go back to the office. The supply chains are still messed up. The chip shortage may go on for two years. The cost of lumber skyrocketed, though it appears to have peaked.
The lockdowns did not protect the people most at risk of dying from Covid, those in nursing homes. HCQ and subsequently a better drug, Ivermectin, would have kept the overall death toll well below what it currently is.
The smearing of those two drugs by national health authorities is a huge scandal.
The FDA opposes the government of Goa giving Ivermectin to all adults, as they know the result will be that cases and deaths there will drop dramatically, as they have elsewhere in India where Ivermectin is being used. The FDA will have some explaining to do as to why they continue to block the use of Ivermectin.
2 years ago
Ahh, Invermectin… truly a wonder drug! Cured my covid, baldness AND erectile dysfunction! Studies show!
2 years ago
“Ahh, Invermectin… truly a wonder drug! Cured my covid, baldness AND erectile dysfunction! Studies show!”
You are being such a clown.
Covid cases and deaths have dropped dramatically where it has been used. The evidence of the efficacy of Ivermectin continues to pile up.
2 years ago
Even many doctors in India are not sure about whether the Ivermectin drug works.
EXCERPT: Dr Ravindra says that he recommended the drug initially as well. “But we stopped the usage entirely as its effects could not be relied upon. The current usage by the medical community is experiential and based on the responses of patients, which cannot hold as a blanket solution. It could be a placebo effect. There is no evidence that the particular drug has helped improve the patient’s health, as multiple drugs are administered during the treatment,” he says.
Even doctors who think it might work, are cautious:
EXCERPT: “Studies cannot happen during an ongoing pandemic. It would be up to the researchers to test patients treated with and without the Ivermectin to find concrete proof for its results in future,” Dr Sheela says.
2 years ago
In the old days, the kings had clowns. Today, even the clowns have lesser (CNN) clowns.
2 years ago
To be honest, the current predicament is not the sole doings of this cast of characters.
This has been sown long ago, remember the days of glory with maestro Greenspan.
Today’s clowns found themselves in a straight jacket, and are not too smart or imaginative in getting out of it.
2 years ago
Feds testing the waters. What we are witnessing is epic MMT on steroids and/or Zombie Corporation rescue program . As P Schiff once remarked “live by QE die by QE ” . the feds are enabling nonproductive firms to continue as a going concerns. Banks are indemnified/back stopped against any bad debt issued. A win for the banks a win for government . just a few fragmented thoughts.
2 years ago
The spin doctors continue to spin. Same sh*t, different day.
I’m really on the fence on the inflation issue now. It’s clear labor is going up in this local market. And not just a little. I doubt that will be transitory. It never is, AFAIK.
2 years ago
The Fed set precedent, with its corporate buying, to independently create more base money than fiscal deficits allow given congressional gridlock. “Inflation or bust” to lift the economy.
2 years ago
Although the Fed’s corp. bond buying program was insignificant other than psychologically, it appears clear that the much larger QE and zero interest rate (aka financial repression) policies, combined with huge fiscal deficits, have provided a very significant boost to the US and global economies, corporate profits, US current account deficits, and asset prices, at least in the short to intermediate term. Close to 15 years of success with such policies (30 years in Japan) with acceptably low infation rates has habituated policy makers and most economists to act as if the inevitable inflationary consequences and related distortions (see Ray Dalio’s e-book on the subject) can be either postponed inevitably or readily dealt with. I do not believe that any one really knows when the piper must be paid.
2 years ago
It is true that the Fed’s purchase of x billion in corporate bonds had little effect per se on achieving its 2% inflation target, but it might have been important in signaling that it would and could “do what it takes” to achieve the target. [f it was illegal then the Fed should have bought something else.] Overenthusiastic praise for a policy doe not make the policy bad.
2 years ago
“Overenthusiastic praise for a policy doe not make the policy bad.”
Correct. An inherently bad policy (i.e., stifling the free market) makes a policy bad.
2 years ago
My next entry in gold might be today. This is the correction I was looking for…..we just need to see how far down it’s likely to go. This always happens when I’m busy working, dang it. I’d expect the correction to be over by tomorrow at latest.
2 years ago
1st stop at 1875 already taken out. 2nd stop around 1854 in play. I doubt it falls.
2 years ago
Bought half. Waiting to see if we have another down leg, maybe tomorrow.
2 years ago
If it matters, the dollar has cleared the hurdle and we can most definitely call this a new daily cycle, as of last Wednesday. I don’t expect the up leg to last very long though. I’m guessing it’s going to be a weak, left translated cycle that has a great chance of taking out the January low on the next bottom.
There certainly could be more downside in gold, but I doubt it falls a lot more in this market.
I bought the other half of my trade. It might be early, but GDX corrected 3% and I think that’s a reasonable correction to risk my entry. Now long SLV and GDX and intending to stay long for the next several weeks, most likely.
2 years ago
The gold reversal today did not break the trend line to the downside. If it does make a further correction, which is likely, I will add to my positions.
2 years ago
Reality is too harsh… lies are warm and fuzzy.