Skip to comments.Stocks plunge after Fed announces stimulus steps
Posted on 09/21/2011 2:46:24 PM PDT by NormsRevenge
NEW YORK (AP) The Federal Reserve did what investors expected it said it would buy Treasury bonds to help the economy. Stocks then plunged because investors saw a grim forecast behind the Fed's plans.
The Fed said Wednesday it would buy long-term Treasurys and sell short-term ones to help the economy regain momentum. It surprised investors when it said it would include more 30-year bonds in its purchases than expected.
Financial analysts said stocks dropped as investors came to the conclusion that the Fed expects the economy to take years to recover.
"It's being viewed as perhaps an admission that this is a longer-term issue that the U.S. economy is facing and not one that's going to be solved over a couple of years," said Oliver Pursche, president of Gary Goldberg Financial Services.
The major indexes fluctuated as they often do after major Fed announcements. The losses accelerated in the last hour of trading.
(Excerpt) Read more at news.yahoo.com ...
“When the Fed decides to take this type of action, it’s because things are serious,”
TRANSLATION: This won't be solved until we get that incompetent boob out of the White House.
Let's be fair. George Bush implemented the first outlandish stimulus (and I voted for him twice, so I'm allowed to state that he had horrendous economic policies).
How to make money in the Obama stock market.
When Obummer or one of his Czars or minions is about to give a speach, short.... and then short some more. Maybe even stupid short.
.... the Fed expects the economy to take years to recover.
TRANSLATION: This won't be solved until the US Treasury begins issuing our money instead of the international banks.
We're all slaves to the bankers as long as we have debt-based money. (Note: this does not mean we need to go back to gold and silver. Fiat money is fine, as long as it is not debt-based).
TRANSLATION: This won’t be solved until we get that incompetent boob out of the White House.
This aint gettin fixed in 4 years no matter who gets elected.
Which is why his last name is now a four-letter word among conservatives/tea-partiers.
We all need to ramp up and realized it ain't just happening, it was neatly planned & managed(see Richard Wolff).
I think you are right!
I feel sorry for whoever gets elected, for he/she will be blamed forever in the history books, if we are still writing after all the dust settles...
I hate to agree with you, but you are correct. This ain’t gonna get fixed. All we can hope to do is hold the progressive agenda at bay.
There was a time such an agenda would border on treason. Now ...it is in the mainstream and elections for the next 50 years isn’t going to make it go away.
What I don’t understand is that history demonstrates that every iteration of the progressive agenda fails. Thousands if not millions are killed as it makes its progress through a culture...and yet the whole dang planet keeps going back to this idea of collective bullcrap. That is what I don’t understand. Time after time, history after history and yet it comes back...
Actually, the reason is very simple - we're insane!! We keep doing the same thing over and over and hoping (sound familiar?) for a different result (change).
Maybe someone could just chain Obammy’s leg to the golf cart. He can golf all day, every day. Less damage that way.
“Stocks then plunged because investors saw a grim forecast behind the Fed’s plans. “
Where does the AP get this analysis?
Do they poll a large number of investors and this is the concensus? Could it be rather that the stupid moves by the fed and the lack of any real measures by this administration to grow the economy that investors frequently are forced to realize that the patients are in charge of the asylum?
When GWB got talked into the $600 per person consumer stimulus giveaway the market gave up 400 points the next day. Could it be the market considered it a bonehead move to print money to stimulate the economy.
The reasons the MSM gives for investor behavior never seems to point to Obama’s deliberate sabotage. I bet Wall Street regularly reacts to actions by our Marxist-in-Chief and not the bland and deceptive causes given like jobs reports.
An exposition on “Operation Twist”:
But I think the nub is in the posted article:
“The move is intended to drive down interest rates on long-term government debt”
Debt Uber Alles for America now.
I am of similar mind. The next president no matter whom will not be able to turn this around any time soon.
It is human nature to want the payoff with out doing the work.
That and no one really wants to view the reality. Even on this board.
Not sure if I was alive the last time we saw negative interest rates or if it’s happened before, in time of war?
The paths we tread today all lead to long-term debt.. for generations.. sad. It doesn’t have to go down that way.
It's hard , Baby. It's hard.
Looks more and more like the ‘30s every day. Have a progressive Food Stamp President, a clueless Fed. Chairman, and a Dem Senate. We only got out of the Great Depression because FDR died, not because of WWII. After WWII, the depression continued until Eisenhower and a Republican congress was elected. Truman was just as stupid and bad as FDR. If Zero is not voted out in 2012, the American people will relive the ‘30s with the addition of uncontrolled violence and rioting.
[ahem] That chart is for Jr Boosh’s terms............
Bush was not helpful. It was tough defending him then ... and now.
which only goes to show how BAD things really are now Sarajevo...I think we could see gold hit $2000-2500 next year and I’m not a “gold-bug”...I do know they are planning a Son-of-Tarp-cum-QE3 for 2012 and that will drag whatever residual value of the US dollar into to the toilet...that alone will make gold shoot up like a rocket....
i believe in my heart that gwb is the greatest president in my voting lifetime.
i also believe he buckled under the pressure of the two presidential lib candidates that believed the stimulus was a good plan, and that an outgoing president should implement it...
that’s how i believe bush signed on to such a horrendous stimulus.
With stocks diving almost 500 points (as of now), I wonder if the Fed is getting the hint - they should shut the h$ll up!! My IRA is taking a beating thanks to these morons!!