Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Stocks plunge after Fed announces stimulus steps
Yahoo ^ | 9/21/11 | Chip Cutter and Francesca Levy - AP

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 ...


TOPICS: Business/Economy; Crime/Corruption; Front Page News; Government
KEYWORDS: economy; federalreserve; operationtwist; plunge; stimulus; stocks

1 posted on 09/21/2011 2:46:27 PM PDT by NormsRevenge
[ Post Reply | Private Reply | View Replies]

Pursche added..

“When the Fed decides to take this type of action, it’s because things are serious,”


2 posted on 09/21/2011 2:48:48 PM PDT by NormsRevenge (Semper Fi ... Godspeed .. Monthly Donor Onboard .. Obama: Epic Fail or Bust!!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge
The Failed Obama Administration©
3 posted on 09/21/2011 2:49:37 PM PDT by April Lexington (Study the Constitution so you know what they are taking away!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge
"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...

TRANSLATION: This won't be solved until we get that incompetent boob out of the White House.

4 posted on 09/21/2011 2:56:28 PM PDT by randog (Tap into America!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: April Lexington
The Failed Obama Administration

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).

5 posted on 09/21/2011 3:01:35 PM PDT by politicket (1 1/2 million attended Obama's coronation - only 14 missed work!)
[ Post Reply | Private Reply | To 3 | View Replies]

To: NormsRevenge

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.


6 posted on 09/21/2011 3:02:04 PM PDT by taxcontrol
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge

.... the Fed expects the economy to take years to recover.


Well, duh. More importantly, the Fed is Hell Bent on keeping interest rates near zero. Anything otherwise would cause the Federal deficit to become totally unaffordable. At this point, its all about buying time.


7 posted on 09/21/2011 3:02:44 PM PDT by rbg81
[ Post Reply | Private Reply | To 1 | View Replies]

To: randog
TRANSLATION: This won't be solved until we get that incompetent boob out of the White House.

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).

8 posted on 09/21/2011 3:04:36 PM PDT by politicket (1 1/2 million attended Obama's coronation - only 14 missed work!)
[ Post Reply | Private Reply | To 4 | View Replies]

To: randog

TRANSLATION: This won’t be solved until we get that incompetent boob out of the White House.
~~~~~~~~~~~~~~~~~~~~~~~~

wrongo bucko

This aint gettin fixed in 4 years no matter who gets elected.


9 posted on 09/21/2011 3:08:30 PM PDT by mamelukesabre
[ Post Reply | Private Reply | To 4 | View Replies]

To: politicket
George Bush implemented the first outlandish stimulus...

Which is why his last name is now a four-letter word among conservatives/tea-partiers.

10 posted on 09/21/2011 3:11:09 PM PDT by Brookhaven
[ Post Reply | Private Reply | To 5 | View Replies]

To: mamelukesabre
This ain't gettin' fixed period!

We all need to ramp up and realized it ain't just happening, it was neatly planned & managed(see Richard Wolff).

11 posted on 09/21/2011 3:13:56 PM PDT by de.rm ('Most people never believe anything you tell them unless it isn't true."-Groucho Marx)
[ Post Reply | Private Reply | To 9 | View Replies]

To: mamelukesabre

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...


12 posted on 09/21/2011 3:19:54 PM PDT by jacquej
[ Post Reply | Private Reply | To 9 | View Replies]

To: NormsRevenge
Step One of my economic plan. Use this on Bernanke's mouth.


13 posted on 09/21/2011 3:22:17 PM PDT by colorado tanker
[ Post Reply | Private Reply | To 1 | View Replies]

To: de.rm; mamelukesabre

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...


14 posted on 09/21/2011 3:24:46 PM PDT by EBH (God Humbles Nations, Leaders, and Peoples before He uses them for His Purpose)
[ Post Reply | Private Reply | To 11 | View Replies]

To: EBH
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.

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).

15 posted on 09/21/2011 3:42:24 PM PDT by DustyMoment (Go green - recycle Congress in 2012!!)
[ Post Reply | Private Reply | To 14 | View Replies]

To: NormsRevenge
Every time an obamite speaks... the Dow loses hundreds of points.

LLS

16 posted on 09/21/2011 4:07:38 PM PDT by LibLieSlayer (Is the person that you support a Crony Capitalist... A.K.A. CRAPITALIST?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge

Maybe someone could just chain Obammy’s leg to the golf cart. He can golf all day, every day. Less damage that way.


17 posted on 09/21/2011 5:17:09 PM PDT by Soothesayer9
[ Post Reply | Private Reply | To 1 | View Replies]

To: politicket
Yes he did but he was already history's lamest of ducks by then. By late 2008 Bush had essentially abdicated to Obama--did whatever he was told, like a whipped puppy. TARP, Porkulus, whatever Paulson wanted, he got. Bush just wanted to go home.
18 posted on 09/21/2011 5:18:35 PM PDT by hinckley buzzard
[ Post Reply | Private Reply | To 5 | View Replies]

To: taxcontrol
In a bull market they say "Buy on the dips." In this market you "short on the bounces."
19 posted on 09/21/2011 5:20:18 PM PDT by hinckley buzzard
[ Post Reply | Private Reply | To 6 | View Replies]

To: NormsRevenge

“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.


20 posted on 09/21/2011 5:29:27 PM PDT by UnChained (The "stimulus" CAUSED the economy to tank.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge

An exposition on “Operation Twist”:
http://seekingalpha.com/article/295156-twist-and-yawn

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.


21 posted on 09/21/2011 5:51:51 PM PDT by mrsmith
[ Post Reply | Private Reply | To 1 | View Replies]

To: LibLieSlayer
The more they speak...the more I see GOLD!!!:



22 posted on 09/21/2011 5:58:54 PM PDT by Nat Turner (I can see NOVEMBER 2012 from my house....)
[ Post Reply | Private Reply | To 16 | View Replies]

To: mamelukesabre
This aint getting fixed in 4 years no matter who gets elected.

I am of similar mind. The next president no matter whom will not be able to turn this around any time soon.

23 posted on 09/21/2011 6:01:29 PM PDT by LowOiL ("Abomination" sure sounds like "ObamaNation" to me.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: DustyMoment; EBH

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.


24 posted on 09/21/2011 6:01:59 PM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
[ Post Reply | Private Reply | To 15 | View Replies]

To: mrsmith

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.


25 posted on 09/21/2011 6:19:38 PM PDT by NormsRevenge (Semper Fi ... Godspeed .. Monthly Donor Onboard .. Obama: Epic Fail or Bust!!!)
[ Post Reply | Private Reply | To 21 | View Replies]

meanwhile.. at the UN

It's hard , Baby. It's hard.

.

26 posted on 09/21/2011 6:21:45 PM PDT by NormsRevenge (Semper Fi ... Godspeed .. Monthly Donor Onboard .. Obama: Epic Fail or Bust!!!)
[ Post Reply | Private Reply | To 25 | View Replies]

To: NormsRevenge

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.


27 posted on 09/21/2011 7:12:57 PM PDT by RetiredTexasVet (There's a pill for just about everything ... except stupid!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Nat Turner

[ahem] That chart is for Jr Boosh’s terms............


28 posted on 09/21/2011 8:06:03 PM PDT by Sarajevo (Is it true that cannibals don't eat clowns because they taste funny?)
[ Post Reply | Private Reply | To 22 | View Replies]

To: politicket

Bush was not helpful. It was tough defending him then ... and now.


29 posted on 09/21/2011 8:08:24 PM PDT by BunnySlippers
[ Post Reply | Private Reply | To 5 | View Replies]

To: Sarajevo

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....


30 posted on 09/21/2011 8:16:39 PM PDT by Nat Turner (I can see NOVEMBER 2012 from my house....)
[ Post Reply | Private Reply | To 28 | View Replies]

To: Nat Turner

Yep.

LLS


31 posted on 09/22/2011 6:45:27 AM PDT by LibLieSlayer (Is the person that you support a Crony Capitalist... A.K.A. CRAPITALIST?)
[ Post Reply | Private Reply | To 22 | View Replies]

To: politicket

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.

teeman


32 posted on 09/22/2011 7:45:44 AM PDT by teeman8r (armageddon won't be pretty, but it's not like it's the end of the world.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: redgolum; EBH

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!!


33 posted on 09/22/2011 12:31:02 PM PDT by DustyMoment (Go green - recycle Congress in 2012!!)
[ Post Reply | Private Reply | To 24 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson