Fed Announces End to Bond-Buying, Citing Job Gains –New York Times
Just a week or so ago one of the Fed’s three most celebrated hawks jumped the mic with a ‘shucks ya know, we could always delay the end of QE’ routine as the stock market plummeted. They don’t make hawks like they used to.
So what does the FOMC really mean, ‘job gains are good so we are ending QE’ or… ‘phew, that was a close one but the market took the Bullard bait and is back near the highs so we are ending QE… for now’. I’ll take ‘B’ Alex.
I seriously wonder how people other than promoters in the media and the financial services complex can continue to fall in line behind this transparent stuff. Maybe it is not really people after all but instead a bunch of connected black boxes, dark pools and other such robo systems simply programmed, without feeling, to follow the code.
As if its ears were burning, here comes SlopeCharts again with the truth…
But… It… Is… What… It… Is… Yes, I get it.
Despite the impression that this racket is morally bankrupt and dishonest, it has also been very bullish for various asset classes since Greenspan first alarmed people by taking interest rates all the way down to below 1% in 2003. Now the robots running the Fed have taken it a step further and institutionalized ZERO percent policy (AKA financial Homicide upon savers), which according to the FOMC will continue on indefinitely.
Look at the chart above and the long journey from when Greenspan began eating the seed corn Volcker left. And now here we are, with a strong economy, a ridiculously bullish stock market, ZIRP-infinity, etc. and some clowns would have us believe that QE is terminated because of strong jobs. What, last week when James the Hawk spoke to the contrary jobs were not strong? Please.
In the very best light, they are day trading information and talking out of too many sides of their gaping orifice, and it sucks.
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