Poll - FED action tomorrow?

derryb

I'm going with a sneak attack on what the FED pays banks to keep deposits on reserve. Maybe a token bond purchase reduction just to test the waters and put a little pressure on the bubbles.

MGLICKER

No taper. Bernanke does not believe that excessive accommodation has a downside. Sadly Yellen is his understudy.

vpr

I think they will taper slightly. IMO, Bernanke isn't as clueless as a lot of folks here think. Jobs reports have been better than expected, which is what they said they were looking at.

jdimmick

My gut feeling is no change, but a little more laid out plan and timeline for reduction in stimulus

although, In the back of my mind , this would actually be a good time to start a small reduction to get the ball rolling, practically every one is pricing it in and expecting something. I think now is the time to start.

bestmr

I hope whatever they decide makes metals go down, personally.

VanHalen

Only the window dressing reports look better. The reality is QE and ZIRP must continue lest the pension funds, IRAs, 401Ks, et all come back to reality and we accept that a depression is required to cleanse the slate. We know the Big Banks, 1%ers, and D.C. won't stand for that as long we can grease the wheels with trillions of USD pouring into the system. Expect The Fed's balance sheet to see the high side of $5 trillion soon.

renman95

How do you taper a ponzi?

My guesses: Big Ben may drop buybacks $10b or so to look good as he heads for the exits but Yellen will run it up as necessary…$100B+/mo to "infinity." Feeding the final outcome...The Great Implosion. Ben will look conservative by comparison in the history books (that he'll ghost-write.)

The Markets are running on momentum and money printing. The principle players won't stop this. People need the Soylent Greenbacks. J6P has to be manipulated to feel comfortably numb…again…to spend...

JohnnyCache

Nothing, business as usual

PerryHall

<< <i>Nothing, business as usual >>


Agree. I doubt they'll want to "rock the boat".

piecesofme

I voted more than one above. This has long been touted as the month that a change of policy would be enacted. I guess I'm blindly believing the Fed will do what they said they would and what alot of analysts that know far more than I about this said they would do. But what do I know, I'm a follower more than a trendsetter

DrBuster

The 'analysts' have been 'expecting' taper for a year. Just saying.

MGLICKER

<< <i>How do you taper a ponzi? >>



Yup.

And if Bernanke tapers today and god forbid the market falls 200 points, he will be called a Grinch for ruining Christmas.

We have become weak.

ricko

No radical change...same program and forecast for taper..with no definitive dates.... (might as well make another prediction - one of them might work out).....Cheers, RickO

DrBuster

Well what do you know, $10bil/mo decrease.

HHUUUUUGGGGEEEEE

pfft, nothing to see, carry on.

bronco2078

So they 10 billion ? Before they claimed 85 billion a month being purchased but it was running closer to 100 billion so if they knock off 10 billion will it drop to 90?

MGLICKER

Looks like Ben's Wall Street buddies bailed him out again with a nice equities rally. Why not, he made them wealthy beyond imagination.

No doubt that his corner office and $20,000,000 compensation package are awaiting him in New York, as they did for Tim Geitner.

CaptHenway

I would hope that the market has already ractored in the tapering. Hence the recent declines. Could improve now that the shoe has dropped.

MGLICKER

<< <i>I would hope that the market has already ractored in the tapering. Hence the recent declines. Could improve now that the shoe has dropped. >>



It no doubt will. Fed has created bubble markets since Volcker in the early 80's. They continue to prop the markets with each dip until it becomes too top heavy and fails, ending in a crash. 1987, 2000 and 2008 were the last three.

Problem for this market is the longer term interest rates on the 10 and 30 year maturities. 10 is close to 3% and 30 is about 4%. Compare that to the SP500 dividend yield which is 1.9%. If and when 10 years return to the long term average of 4.5%, the dividend yield on the SP will look anemic and the market will fail once again.

Another crash, another great recession and another savior president to bail us out.

jmb

<< <i>So they 10 billion ? Before they claimed 85 billion a month being purchased but it was running closer to 100 billion so if they knock off 10 billion will it drop to 90? >>



Exactly.

Just like our Government baseline budgeting. We projected to spend $4 trillion for the fiscal year, but only spent $3.8 trillion, so we SAVED $.2 trillion. Oh, by the way, we spent $3.5 trillion the previos fiscal year. Huh ? So, in actuality they didn't save anything. They spent an additional $.3 trillion.

MGLICKER

From CNNMONEY:

"The bond-buying program has become so large, it's expected to push the Fed's assets to $4 trillion this week -- money the Fed basically created out of thin air."

Take out the word basically and I fully agree.

renman95

<< <i>How do you taper a ponzi?

My guesses: >>

Big Ben may drop buybacks $10b or so to look good as he heads for the exits but Yellen will run it up as necessary…$100B+/mo to "infinity." Feeding the final outcome...The Great Implosion. Ben will look conservative by comparison in the history books (that he'll ghost-write.)

The Markets are running on momentum and money printing. The principle players won't stop this. People need the Soylent Greenbacks. J6P has to be manipulated to feel comfortably numb…again…to spend...

comrade make lucky guess, no.

s4ny

Masterful move by Ben B. Started the feared taper and the stock market loves it.
New all time highs on Dow Jones and S&P 500.

No inflation as far as the eye can see. Gold on the verge of new 3 year lows.

jmski52

9:50 AM the "day after", and it still looks like perceptions have been successfully managed. The US economy must be growing very well to need the continued money supply expansion. Redistribution of wealth, nothing less.

derryb

By "sacraficing" a small cutback in purchases the FED was able to minimize the focus on it's continued Zero Interest Rate Policy. The fact that ZIRP cannot be changed without turning the economy upside down should be the talking heads' topic of the day.

johnny9434

business as usual. i wonder what there hiding?