Skip to comments.THE FED DECISION IS OUT: And The Taper Has Begun
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 ...
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.
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.
And the market skyed.
They only lost 10 B a month. They’re thinking it could have been worse I guess.
It’s not working, so let us keep doing it
That is about a trillion a year. Insane
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.
This ought to be quite interesting over the weeks ahead.
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.
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.
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.
“And the market skyed.
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.
” 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.
That’s not government spending - it’s printing money.
And it could eventually lead to the biggest collapse in the history of Mankind, as other countries jump on the fiat merry-go-round.
I clicked my ticker link expecting to see a huge plunge, but the Dow shot up over 150 pts, and is still going. WTF?
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.
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.
This is why I'm not a day trader. Figure the market? I'd be broke by now.
That means things are improving under Chancellor Barack!!
We can party on, dude!!
The "magic number" for the dollar appears to be 80 on the index.
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.
DOW is up nearly 200 2:45 EDT
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!
Recovery for Wall $treet but not Main Street...funny we never hear that anymore....
Everything is upside down in the entire world.
“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.
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.
That's because it's now "their" Wall $treet.
The Messiah is great for all. /s
Sort of like when they read out the SCOTUS tax decision on Obastardcare.
When in trouble, when in doubt,
Run in circles, scream and shout.
And it’s only Wednesday.
It's been that way for almost five years, now.
Wow, a whole ten billion. Wow. I’m impressed. /drippy-drippy-sarcasm
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.
...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....
(time to build that new addition...on my cardboard box)
I am dreaming; along w/ USA and apparently the whole earth.
Now I understand why USG _rammed_ a continued deficit budget into “law”.
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!
Iran and North Korea would love to see that. Iran will get the bomb (been saying it for years).
Less than 12%