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" But not to be out-gunned by Fed President Fisher."
Fisher's investments (at least a year or two ago) look like someone who is expecting inflation. I tend to be curious if some of these Fed governors are not simply acting a role to appear as if there's discussion and opposition rather than the reality that they're all for printing 24/7.
"The FED - with a rash of seemingly conflicting comments in recent weeks regarding the current stimulative monetary policies. Last week's "minutes" suggested early ending to QE3."
Fed president Bullard came out and acted like "no, no ZIRP4EVER" on CNBC a couple of days later. He also noted that the Fed minutes were and are "heavily wordsmithed." It has been said that more time at Fed meetings is spent on communication than policy, and I'd believe it. It's amazing that the market doesn't have a tantrum from the obvious flip-flopping alone, but what else can the market look to at the governmental level than the Fed?
It should not be surprising to anyone that the market does not like the possible end of QE - the Fed should also not be surprised that they created a market that's addicted (bad news is good, because bad news means more QE) to QE, especially after having QE, ZIRP and other games for this long. I said on fundalarm that QE and whatnot is a path that's going to be very difficult (if impossible) to get off of/exit from. I would really not be surprised one bit if QE and ZIRP or both continue towards the next election.
As I've noted recently, if we go into recession, then what - more QE? We are almost five years after 2008, and after QE to infinity and ZIRP for years, we get a revision on GDP today from -0.1% to +0.1%. Wow.
"The trick is to set up these expectations among market participants without spooking investors"
lol. Their expectation is more free money (or, as some type, "Moar free moniez.") Anything aside from that and market will not be pleased.
Reply to @scott: Hi Scott. ... editing as you wrote. Couldn't find the "drug addiction" quote in the Fisher story. But, his references to tapering down the "dose" & not going "cold turkey" are revealing ... Regards
*DALLAS FED'S FISHER FED HAS BEEN `SOURCE OF FUEL' FOR RECOVERY *DALLAS FED'S FISHER SAYS IT'S TIME TO TAPER OFF BOND-BUYING *DALLAS FED'S FISHER SAYS FISCAL AUTHORITIES HAVE CREATED 'FOG
I'm holding my breath a bit on sequester. Heading into new year, I thought perhaps we'd be OK, but now we seem back once again unable to legislate. Maybe in my next life I will come back as a US congressman or senator...folks with title, great salary, perks, benefits...who need not worry about accomplishing anything. All I would have to do is automatically vote along my party's line...and articulate now and then that I'm staunchly against anything the opposing party pursues. I bet can do that! (If only I had no thought or conscience.) Honestly, just can't see how we as a country can continue to operate in gridlock on all the hard issues. Perhaps our great nation just does not see a clear and present threat.
The economy shrank in 2008--now powerful constituencies in both parties are going to be battling it out over who is going to pay for our shrunken economy--it is not about shrinking the deficit it is about what constituency is going to pay more. On one side you have groups that expect government services and on the other side you have groups who want a stable functioning government and society but want somebody else to pay for it. Our democracy demands they both pay and they both will.
Comments
Fisher's investments (at least a year or two ago) look like someone who is expecting inflation. I tend to be curious if some of these Fed governors are not simply acting a role to appear as if there's discussion and opposition rather than the reality that they're all for printing 24/7.
"The FED - with a rash of seemingly conflicting comments in recent weeks regarding the current stimulative monetary policies. Last week's "minutes" suggested early ending to QE3."
Fed president Bullard came out and acted like "no, no ZIRP4EVER" on CNBC a couple of days later. He also noted that the Fed minutes were and are "heavily wordsmithed." It has been said that more time at Fed meetings is spent on communication than policy, and I'd believe it. It's amazing that the market doesn't have a tantrum from the obvious flip-flopping alone, but what else can the market look to at the governmental level than the Fed?
It should not be surprising to anyone that the market does not like the possible end of QE - the Fed should also not be surprised that they created a market that's addicted (bad news is good, because bad news means more QE) to QE, especially after having QE, ZIRP and other games for this long. I said on fundalarm that QE and whatnot is a path that's going to be very difficult (if impossible) to get off of/exit from. I would really not be surprised one bit if QE and ZIRP or both continue towards the next election.
As I've noted recently, if we go into recession, then what - more QE? We are almost five years after 2008, and after QE to infinity and ZIRP for years, we get a revision on GDP today from -0.1% to +0.1%. Wow.
"The trick is to set up these expectations among market participants without spooking investors"
lol. Their expectation is more free money (or, as some type, "Moar free moniez.") Anything aside from that and market will not be pleased.
*DALLAS FED'S FISHER FED HAS BEEN `SOURCE OF FUEL' FOR RECOVERY
*DALLAS FED'S FISHER SAYS IT'S TIME TO TAPER OFF BOND-BUYING
*DALLAS FED'S FISHER SAYS FISCAL AUTHORITIES HAVE CREATED 'FOG
http://www.zerohedge.com/news/2013-02-28/least-they-are-finally-honest-again
Gotta make it look like there's opposition.
Additionally, forgot that Fisher isn't a voting member of the FOMC.