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Fed's Bullard: Bernanke bond announcement was poorly timed
Reuters.com ^ | 6/21/2013 | Reuters

Posted on 06/21/2013 8:01:55 AM PDT by mykroar

St. Louis Federal Reserve Bank President James Bullard worried that the Fed's decision earlier this week to announce a plan to reduce bond buying was poorly timed, the regional Fed bank said in a statement on Friday explaining his dissent.

"President Bullard ... felt that the committee's decision to authorize the chairman to lay out a more elaborate plan for reducing the pace of asset purchases was inappropriately timed," the St. Louis Fed's statement said.

Bullard was one of two dissents cast on Wednesday by members of the U.S. central bank's policy-setting Federal Open Market Committee. The other dissent, by Kansas City Fed President Esther George, was in the opposite direction, as she worried that ongoing bond buying could stoke financial instability.

(Excerpt) Read more at uk.reuters.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: bernanke; bond; bonds; fed
No, no, no - keep the tap flowing forever!
1 posted on 06/21/2013 8:01:55 AM PDT by mykroar
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To: mykroar
The only thing keeping the market this pumped up is Fed money. There is no good time for Bartender Ben to make the last call.
2 posted on 06/21/2013 8:05:44 AM PDT by KarlInOhio (This message has been recorded but not approved by Obama's StasiNet. Read it at your peril.)
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To: mykroar
Bernanke timed it probably to make billions for his handlers.
3 posted on 06/21/2013 8:05:55 AM PDT by mountainlion (Live well for those that did not make it back.)
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To: mykroar

There’s never a good time to tell the party animals you’re going to take the punchbowl away.


4 posted on 06/21/2013 8:08:44 AM PDT by Pearls Before Swine
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To: mykroar

Correctamundo. You do it in a Friday evening document dump going into a three-day holiday weekend. DOH!


5 posted on 06/21/2013 8:09:37 AM PDT by Buckeye McFrog
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To: Buckeye McFrog

Correctamundo. You do it in a Friday evening document dump going into a three-day holiday weekend. DOH!
********************************************
YOU DO IT GOING INTO AN OPTIONS EXPIRATION FRIDAY!!! Who had puts ? They were real cheap a week ago when the party money spigot was wide open? Not so much now eh!

This was a push to knock down PM’s , force players in paper assets to raise cash while simultaneously raising the margin requirements at the CME..

Who doesn’t think this game is rigged ?

Trying to get people to buy the “safety” of government bonds?


6 posted on 06/21/2013 8:17:52 AM PDT by Neidermeyer (I used to be disgusted , now I try to be amused.)
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To: Buckeye McFrog
"You do it in a Friday evening document dump going into a three-day holiday weekend."

That wouldn't work with the investor class - they are pretty shrewd because their livlihoods are at stake. I'm sure this guy believes the correct timing would be - never.

7 posted on 06/21/2013 8:18:39 AM PDT by circlecity
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To: mykroar

President Bullard felt that a more prudent approach would be to wait for more tangible signs that the economy was strengthening and that inflation was on a path to return toward target before making such an announcement,”

Extremely predictable. The Fed tests the waters to see what the market’s response is to a certain message (in this case tapering back $85 billion/mth in pruchases). The market pukes all over itself and so dissenting opinions are released on cue to reassure.

Nothing but Kabuki theater.


8 posted on 06/21/2013 8:19:16 AM PDT by bereanway
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To: mykroar

Obama: “Bernanke, you idiot! I have enough to worry about with jokin’ Joe’s mouth.”


9 posted on 06/21/2013 8:24:36 AM PDT by fwdude ( You cannot compromise with that which you must defeat.)
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To: Pearls Before Swine

“There’s never a good time to tell the party animals you’re going to take the punchbowl away”

Especially when the party animals have become hard-core addicted to what’s in it.


10 posted on 06/21/2013 8:30:48 AM PDT by ScottinVA ( Liberal is to patriotism as Kermit Gosnell is to neonatal care.)
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To: Neidermeyer
Exactly correct in every respect. I still remember the day in 2001 when Greenspan made a between-meeting surprise announcement during trading on option expiration day that jammed the S&P up five percent in an instant. I read many tales of six-figure losses that day.

http://www.zealllc.com/2001/gambit.htm

11 posted on 06/21/2013 8:34:03 AM PDT by jiggyboy (Ten percent of poll respondents are either lying or insane)
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To: mountainlion
Bernanke timed it probably to make billions for his handlers.

Selling short!

12 posted on 06/21/2013 8:42:08 AM PDT by grobdriver
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To: mykroar

Given the immediate reaction among all asset classes at the same moment, I would say it was PERFECTLY timed for the few people who wanted him to say exactly that: the banks. The corruption of bank-driven crony-capitalism was on full display.


13 posted on 06/21/2013 8:42:44 AM PDT by SC_Pete
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To: grobdriver

The algos were loaded: once the word came, the buttons were pushed. this was all by design. Now they will steal the assets at discount and push them up again.


14 posted on 06/21/2013 8:45:09 AM PDT by SC_Pete
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To: mykroar

Bullard you idiot. The MARKET is signaling a lack of faith in The Fed and WANT rates to rise!!!!!

http://confoundedinterest.wordpress.com/2013/06/20/loss-of-faith-in-fed-dow-plummets-353-97-yields-spike-m2-velocity-dives/


15 posted on 06/21/2013 9:23:53 AM PDT by whitedog57
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