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THE FED DECISION IS OUT: And The Taper Has Begun
BI Australia ^ | December 18, 2013 | Matthew Boesler

Posted on 12/18/2013 11:16:27 AM PST by John W

The December FOMC decision is out.

The Fed will taper asset purchases to a monthly rate of $75 billion from the current $85 billion pace. Half of the reduction is in Treasury purchases and half of the reduction is in purchases of mortgage-backed securities.

However, the FOMC did not modify its forward guidance, leaving the unemployment rate threshold for the first rate hike at 6.5%.

(Excerpt) Read more at businessinsider.com.au ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS:

1 posted on 12/18/2013 11:16:27 AM PST by John W
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To: John W

NEW YORK (MarketWatch) — U.S. stocks rallied after the Federal Reserve announced that it would begin slowing down the pace of bond purchases, known as quantitative easing. The Fed policymakers voted to cut $10 billion a month from its $85 billion bond-buying program, starting in January.


2 posted on 12/18/2013 11:17:41 AM PST by John W (Viva Cristo Rey!)
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To: John W

Still the biggest Ponzi scheme in the annals of recorded human history. Borrowing money from ourselves creating Monoploy money in the process. A big shell game. Robbing Peter to pay Paul.


3 posted on 12/18/2013 11:20:07 AM PST by Trapped Behind Enemy Lines
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To: John W

And the market skyed.

Go figure.


4 posted on 12/18/2013 11:20:17 AM PST by OpusatFR
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To: OpusatFR

They only lost 10 B a month. They’re thinking it could have been worse I guess.


5 posted on 12/18/2013 11:21:05 AM PST by John W (Viva Cristo Rey!)
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To: John W

It’s not working, so let us keep doing it


6 posted on 12/18/2013 11:22:21 AM PST by GeronL (Extra Large Cheesy Over-Stuffed Hobbit)
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To: John W

That is about a trillion a year. Insane


7 posted on 12/18/2013 11:22:53 AM PST by GeronL (Extra Large Cheesy Over-Stuffed Hobbit)
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To: John W
The Fed will taper asset purchases to a monthly rate of $75 billion from the current $85 billion pace.

LOLOL

A $120B cut in government annual spending - Right... Either they've figured a way to squeeze more from the taxpayers, or it's just another ruse.

8 posted on 12/18/2013 11:23:57 AM PST by Errant
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To: John W

9 posted on 12/18/2013 11:24:26 AM PST by E. Pluribus Unum (Who knew that one day professional wrestling would be less fake than professional journalism?)
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To: John W

This ought to be quite interesting over the weeks ahead.


10 posted on 12/18/2013 11:26:01 AM PST by servantboy777
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To: OpusatFR
And the market skyed. Go figure.

They expected to be thrown out of the bar. Instead the new bartender just locked away the Everclear but the whiskey, rum and vodka are still flowing. DTs postponed for now.

11 posted on 12/18/2013 11:26:15 AM PST by KarlInOhio (Everyone get online for Obamacare on 10/1. Overload the system and crash it hard!)
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To: John W

When I saw this announcement I had a flashback to my bad old days in the Navy.

I heard the Diving Alarm followed by the Collision Alarm. I guess I could have added the “Power Plant Casualty Alarm” but I don’t remember what that one sounds like.


12 posted on 12/18/2013 11:27:03 AM PST by Pan_Yan (Who told you that you were naked? Genesis 3:11)
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To: John W

What a load of Bravo Sierra.

Let me tell you what the Fed is going to do....
They’re going to print.
Then they’re going to print some more.
Then they’re going to print more still.
And just when you thought they were going to “taper”, they’re going to print some more.
They’re going to print to wake the dead.
They’re going to print till their eyes bleed.
Because that’s what their political and corporate cronies want.


13 posted on 12/18/2013 11:27:09 AM PST by RKBA Democrat ( There is no worst president but owebama, and valerie jarrett is his prophet.)
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To: Trapped Behind Enemy Lines
The powers that be are driving the country into financial collapse.After that a civil war that will make the Balkans look like an ice cream social.
14 posted on 12/18/2013 11:27:56 AM PST by Farmer Dean (stop worrying about what they want to do to you,start thinking about what you want to do to them)
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To: OpusatFR

“And the market skyed.
Go figure.”

I think because the market knows that taper talk is just that. Washington ain’t gonna stop spending, and in 2014 Aunt Janet has all but guaranteed to press harder on the gas.

We’ll see how the rest of the day and week goes.


15 posted on 12/18/2013 11:31:06 AM PST by MichaelCorleone (Jesus Christ is not a religion. He's the Truth.)
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To: John W

” the FOMC did not modify its forward guidance, leaving the unemployment rate threshold for the first rate hike at 6.5%”

That is not correct. From the statement:

The Committee now anticipates, based on its assessment of these factors, that it likely will be appropriate
to maintain the current target range for the federal funds rate well past the time that the unemployment
rate declines below 6-1/2 percent, especially if projected inflation continues to run below the Committee’s
2 percent longer-run goal.

And that is why the market took off, not the $10 billion taper.


16 posted on 12/18/2013 11:31:39 AM PST by green iguana
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To: Errant

That’s not government spending - it’s printing money.


17 posted on 12/18/2013 11:32:19 AM PST by green iguana
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To: Trapped Behind Enemy Lines
Still the biggest Ponzi scheme in the annals of recorded human history.

The Biggest Scam In The History Of Mankind

And it could eventually lead to the biggest collapse in the history of Mankind, as other countries jump on the fiat merry-go-round.

18 posted on 12/18/2013 11:33:02 AM PST by Errant
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To: OpusatFR

I clicked my ticker link expecting to see a huge plunge, but the Dow shot up over 150 pts, and is still going. WTF?


19 posted on 12/18/2013 11:37:06 AM PST by Cyber Liberty (H.L. Mencken: "The urge to save humanity is almost always a false front for the urge to rule.")
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To: green iguana

Yep, and unfortunately since the dollar is the world’s reserve currency, increased the price of essential items like food and etc. worldwide. That contributed to the unrest in the middle east, along with O’s underhanded machinations.


20 posted on 12/18/2013 11:37:51 AM PST by Errant
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To: John W
Well, the Dollar skyrocketed on the 2:00 news. But now it's tanking on the 2:30 FOMC Press Conference.

It appears people buying/selling Dollars don't know what to do except scream, holler, run in circles, or buy or sell or... whatever.

I can't say as I blame them.

21 posted on 12/18/2013 11:38:19 AM PST by Gritty (Liberals think living your life free of welfare, EBT, and government nannies is "cheating"-J Hawkins)
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To: Cyber Liberty
Yup - I did the same thing.
It took a quick dive and then... WTF?

This is why I'm not a day trader. Figure the market? I'd be broke by now.

22 posted on 12/18/2013 11:40:32 AM PST by grobdriver
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To: OpusatFR

That means things are improving under Chancellor Barack!!

We can party on, dude!!


23 posted on 12/18/2013 11:41:23 AM PST by F15Eagle (1Jn4:15;5:4-5,11-13;Mt27:50-54;Mk15:33-34;Jn3:17-18,6:69,11:25,14:6,20:31;Ro10:8-11;1Tm2:5-6;Ti3:4-7)
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To: Gritty; All
Keep your eyes on these two charts and get ready for when they cross (dollar heads down while gold heads up) and stay that way all time. In the meantime, the central banks will do everything in their considerable influence to prevent it from happening.

The "magic number" for the dollar appears to be 80 on the index.

24 posted on 12/18/2013 11:42:54 AM PST by Errant
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To: green iguana

But the real unemployment rate after you take out all the frauds and Gimmicks is probably over 3 times the rate they list.

But gullible sheeple will believe anything.


25 posted on 12/18/2013 11:43:42 AM PST by Revel
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To: Gritty

DOW is up nearly 200 2:45 EDT


26 posted on 12/18/2013 11:44:44 AM PST by eyedigress ((zOld storm chaser from the west)/ ?s)
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To: green iguana

At 2%/year, it simply means the government wants to steal about 20% of your wealth every decade ... do the math ...

And we let them get away with it!


27 posted on 12/18/2013 11:44:51 AM PST by rollin
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To: eyedigress

Recovery for Wall $treet but not Main Street...funny we never hear that anymore....


28 posted on 12/18/2013 11:45:50 AM PST by nascarnation (Wish everyone see a "Gay Kwanzaa")
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To: Cyber Liberty

Everything is upside down in the entire world.


29 posted on 12/18/2013 11:46:21 AM PST by steve86 (Some things aren't really true but you wouldn't be half surprised if they were.)
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To: Cyber Liberty

“I clicked my ticker link expecting to see a huge plunge, but the Dow shot up over 150 pts, and is still going. WTF?”

And the 10 year Treasury Yields actually dived as well. Nothing is normal. It is all Smoke and Mirrors.


30 posted on 12/18/2013 11:50:30 AM PST by Revel
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To: Cyber Liberty

Oh, the plunge is there. It’s pretty funny too. Statement came out at 1 and traders started reading it. They hit the taper part “They’re tapering - SELL”, and the Dow plunged 100 points in no time.

They keep reading, knowing in their hearts all the rest is drivel unti they hit the part about walking back the 6.5% unemployment target. “Holy **** - BUY!!!”

And the Dow rockets up 250 points.


31 posted on 12/18/2013 11:52:36 AM PST by green iguana
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To: nascarnation
Recovery for Wall $treet but not Main Street...funny we never hear that anymore...

That's because it's now "their" Wall $treet.

32 posted on 12/18/2013 11:54:24 AM PST by RckyRaCoCo (Shall Not Be Infringed)
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To: RckyRaCoCo; nascarnation

Exactly.

The Messiah is great for all. /s


33 posted on 12/18/2013 11:58:09 AM PST by eyedigress ((zOld storm chaser from the west)/ ?s)
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To: green iguana

Sort of like when they read out the SCOTUS tax decision on Obastardcare.


34 posted on 12/18/2013 11:58:10 AM PST by Cyber Liberty (H.L. Mencken: "The urge to save humanity is almost always a false front for the urge to rule.")
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To: Gritty

When in trouble, when in doubt,
Run in circles, scream and shout.

And it’s only Wednesday.


35 posted on 12/18/2013 12:03:45 PM PST by sarasota
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To: steve86
Everything is upside down in the entire world.

It's been that way for almost five years, now.

36 posted on 12/18/2013 12:05:16 PM PST by Jane Long (While Marxists continue the fundamental transformation of the USA, progressive RINOs assist!)
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To: John W

Wow, a whole ten billion. Wow. I’m impressed. /drippy-drippy-sarcasm


37 posted on 12/18/2013 12:12:34 PM PST by CodeToad (When ignorance rules a person's decision they are resorting to superstition.)
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To: servantboy777

Do they taper based on the lies of the Bureau of Lies, eh I mean Labor in regards to unemployment? This should prove interesting when the expansion of QE47 begins again in 2014 and the Fed is blamed on an “unexpected” recession next year instead of obamacare.


38 posted on 12/18/2013 12:20:30 PM PST by sarge83
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To: steve86
So what I've got from Bernanke today is basically...

...those that created the financial crisis in the first place...by their actions in concert with FED policies...are the ones who have benefited the most....

That'll teach'em!...

...Thanks Ben!

(time to build that new addition...on my cardboard box)

39 posted on 12/18/2013 12:29:25 PM PST by RckyRaCoCo (Shall Not Be Infringed)
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To: All

I am dreaming; along w/ USA and apparently the whole earth.
Now I understand why USG _rammed_ a continued deficit budget into “law”.


40 posted on 12/18/2013 12:45:29 PM PST by veracious
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To: John W

The TAPER CAPER!

But the market is happy, Dow Jones Industrial up $293+change. 90 day TBills close at .06%(that is 0.0006). Helicopter Ben is happy. Obama is happy. Biden is always happy. Everybody get happy but not too happy!


41 posted on 12/18/2013 1:14:12 PM PST by Rock N Jones
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To: Farmer Dean
After that a civil war that will make the Balkans look like an ice cream social.

Iran and North Korea would love to see that. Iran will get the bomb (been saying it for years).

42 posted on 12/18/2013 1:21:36 PM PST by VRW Conspirator ( 2+2 = V)
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To: John W

Less than 12%


43 posted on 12/18/2013 2:44:27 PM PST by stocksthatgoup (Take out the trash)
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