Fed Launches QE3

[The Rabbi]

Because the first two were so successful. What makes anyone think our problem is high interest rates?
Fed Pulls Trigger, to Buy Mortgages in Effort to Lower Rates - Yahoo! Finance

 

[SniperFire]

What a fucking disaster.

 

[Mr. H.]

Where's the incentive to save money when banks offer shit for returns on accounts?

 

[The Rabbi]

Where's the incentive to save money when banks offer shit for returns on accounts?

There isn't. That's part of the thought process.

 

[Toro]

Awesome! I started buying stocks the day before the constitutional court in Germany ruled, bought heavily yesterday after the ruling, then finished the day today over 200% net long. I had no idea it would happen like this, and though I thought he would eventually, but Ben came in on QE3 heavier than the market expected, and Wall Street is poorly positioned. We're going to challenge the all-time highs over the next 6 weeks - I think! - then start fretting over the fiscal cliff and the debt ceiling some time around the election.

The printing presses are running at full strength. You can bitch about it or make money off it.

 

[B. Kidd]

Awesome! I started buying stocks the day before the constitutional court in Germany ruled, bought heavily yesterday after the ruling, then finished the day today over 200% net long. I had no idea it would happen like this, and though I thought he would eventually, but Ben came in on QE3 heavier than the market expected, and Wall Street is poorly positioned. We're going to challenge the all-time highs over the next 6 weeks - I think! - then start fretting over the fiscal cliff and the debt ceiling some time around the election.

The printing presses are running at full strength. You can bitch about it or make money off it.

Unless you sell at the right time, your money is tied up. I do think the market is going over 14,000, tho'. If you don't sell then, as savvy as you are, you'll be just another greedy loser.
Jus' my advice.......

 

[Toro]

Awesome! I started buying stocks the day before the constitutional court in Germany ruled, bought heavily yesterday after the ruling, then finished the day today over 200% net long. I had no idea it would happen like this, and though I thought he would eventually, but Ben came in on QE3 heavier than the market expected, and Wall Street is poorly positioned. We're going to challenge the all-time highs over the next 6 weeks - I think! - then start fretting over the fiscal cliff and the debt ceiling some time around the election.

The printing presses are running at full strength. You can bitch about it or make money off it.

Unless you sell at the right time, your money is tied up. I do think the market is going over 14,000, tho'. If you don't sell then, as savvy as you are, you'll be just another greedy loser.
Jus' my advice.......

I've been doing this for nearly 20 years, s0n. And even though I've really sucked over the past 21 months, this is like playing T-ball with a 50-foot fence.

But stay out of the deep end if you can't swim.

 

[B. Kidd]

Awesome! I started buying stocks the day before the constitutional court in Germany ruled, bought heavily yesterday after the ruling, then finished the day today over 200% net long. I had no idea it would happen like this, and though I thought he would eventually, but Ben came in on QE3 heavier than the market expected, and Wall Street is poorly positioned. We're going to challenge the all-time highs over the next 6 weeks - I think! - then start fretting over the fiscal cliff and the debt ceiling some time around the election.

The printing presses are running at full strength. You can bitch about it or make money off it.

Unless you sell at the right time, your money is tied up. I do think the market is going over 14,000, tho'. If you don't sell then, as savvy as you are, you'll be just another greedy loser.
Jus' my advice.......

I've been doing this for nearly 20 years, s0n. And even though I've really sucked over the past 21 months, this is like playing T-ball with a 50-foot fence.

But stay out of the deep end if you can't swim.

I've been in the deep end!
I had significant real estate holdings when the 2008 economic crisis hit, and still retired comfortably at age 55 in late August of that year. Am still living comfortably, still retired.
I swam, and still know how.......
Of course, robbin' banks does help.

 

[Decus]

Any truth to the rumor that the banks are using this increased liquidity to play the market and not to make much needed loans?

 

[B. Kidd]

Any truth to the rumor that the banks are using this increased liquidity to play the market and not to make much needed loans?

Are there any regulations in place holding them back from doing what you posted?

 

[Toro]

Of course, robbin' banks does help.

Good for you. A man's gotta have a hobby.

 

[expat_panama]

Awesome! I started buying stocks the day before the constitutional court in Germany ruled...

Me too.

My take is the Fed's doing it's job while most press pundits and forum posters are clueless. That's ok, there're billions of incompetents in the world, what matters is that most of us are actually doing pretty well.

 

[Toro]

Awesome! I started buying stocks the day before the constitutional court in Germany ruled...

Me too.

My take is the Fed's doing it's job while most press pundits and forum posters are clueless. That's ok, there're billions of incompetents in the world, what matters is that most of us are actually doing pretty well.

Yeah, but my buying is purely cynical. I'm just buying because QE has worked spectacularly well for stocks in the past.

But full disclosure, I've been really bad since the beginning of 2011.

 

[Zander]

Awesome! I started buying stocks the day before the constitutional court in Germany ruled, bought heavily yesterday after the ruling, then finished the day today over 200% net long. I had no idea it would happen like this, and though I thought he would eventually, but Ben came in on QE3 heavier than the market expected, and Wall Street is poorly positioned. We're going to challenge the all-time highs over the next 6 weeks - I think! - then start fretting over the fiscal cliff and the debt ceiling some time around the election.

The printing presses are running at full strength. You can bitch about it or make money off it.

I went short late this afternoon....

 

[B. Kidd]

Awesome! I started buying stocks the day before the constitutional court in Germany ruled...

Me too.

My take is the Fed's doing it's job while most press pundits and forum posters are clueless. That's ok, there're billions of incompetents in the world, what matters is that most of us are actually doing pretty well.

Yeah, but my buying is purely cynical. I'm just buying because QE has worked spectacularly well for stocks in the past.

But full disclosure, I've been really bad since the beginning of 2011.

I like this about you Toro, honesty!

(P.S.- I'm selling in January.....after we clear the holi-daze season. But, thatz just me....).

 

[Toro]

Awesome! I started buying stocks the day before the constitutional court in Germany ruled, bought heavily yesterday after the ruling, then finished the day today over 200% net long. I had no idea it would happen like this, and though I thought he would eventually, but Ben came in on QE3 heavier than the market expected, and Wall Street is poorly positioned. We're going to challenge the all-time highs over the next 6 weeks - I think! - then start fretting over the fiscal cliff and the debt ceiling some time around the election.

The printing presses are running at full strength. You can bitch about it or make money off it.

I went short late this afternoon....

Good luck to you!

Maybe this time will be different, I don't know. But in the last two times we've had QE, after the Jackson Hole speech on August 31 2010, and after the LTRO announcement in Europe on December 20 2011, stocks exploded higher like they did today, then ground higher for the next 3-6 months, rising 25% and 15% respectively. (The first QE started in the depths of the Financial Crisis and stocks rose something like 50%.) I count the first part of this round of QE when Draghi said the ECB would buy a mountain of bonds last week.

Since the beginning of 2009, the total return of the S&P 500 has been 90%. The interesting thing is that the market has only risen when the central banks have been buying securities. Stocks have been down when they've stopped. So now, you have the ECB buying, the Fed buying, and the Chinese talking about stimulus. I think you're going to get your head handed to you over the next 2 months.

But, you've been right the past two years and I've been wrong!

 

[Zander]

Awesome! I started buying stocks the day before the constitutional court in Germany ruled, bought heavily yesterday after the ruling, then finished the day today over 200% net long. I had no idea it would happen like this, and though I thought he would eventually, but Ben came in on QE3 heavier than the market expected, and Wall Street is poorly positioned. We're going to challenge the all-time highs over the next 6 weeks - I think! - then start fretting over the fiscal cliff and the debt ceiling some time around the election.

The printing presses are running at full strength. You can bitch about it or make money off it.

I went short late this afternoon....

Good luck to you!

Maybe this time will be different, I don't know. But in the last two times we've had QE, after the Jackson Hole speech on August 31 2010, and after the LTRO announcement in Europe on December 20 2011, stocks exploded higher like they did today, then ground higher for the next 3-6 months, rising 25% and 15% respectively. (The first QE started in the depths of the Financial Crisis and stocks rose something like 50%.) I count the first part of this round of QE when Draghi said the ECB would buy a mountain of bonds last week.

Since the beginning of 2009, the total return of the S&P 500 has been 90%. The interesting thing is that the market has only risen when the central banks have been buying securities. Stocks have been down when they've stopped. So now, you have the ECB buying, the Fed buying, and the Chinese talking about stimulus. I think you're going to get your head handed to you over the next 2 months.

But, you've been right the past two years and I've been wrong!

Actually, we've both been wrong. I thought the stock market would be much lower by now, but the SP500 is still magically levitating.

Anyway, I just put a little "play money" into an ultra short fund....I still like cash.

 

[B. Kidd]

I went short late this afternoon....

Good luck to you!

Maybe this time will be different, I don't know. But in the last two times we've had QE, after the Jackson Hole speech on August 31 2010, and after the LTRO announcement in Europe on December 20 2011, stocks exploded higher like they did today, then ground higher for the next 3-6 months, rising 25% and 15% respectively. (The first QE started in the depths of the Financial Crisis and stocks rose something like 50%.) I count the first part of this round of QE when Draghi said the ECB would buy a mountain of bonds last week.

Since the beginning of 2009, the total return of the S&P 500 has been 90%. The interesting thing is that the market has only risen when the central banks have been buying securities. Stocks have been down when they've stopped. So now, you have the ECB buying, the Fed buying, and the Chinese talking about stimulus. I think you're going to get your head handed to you over the next 2 months.

But, you've been right the past two years and I've been wrong!

Actually, we've both been wrong. I thought the stock market would be much lower by now, but the SP500 is still magically levitating.

Anyway, I just put a little "play money" into an ultra short fund....I still like cash.

Whoa!
An apple fell off a tree, boinked Zander on the head, and he had the thought, "Cash is King".
Only joking, Z.

 

[expat_panama]

...just buying because QE has worked spectacularly well for stocks in the past...

Whenever you buy low and sell high, you're doing a favor for the person who sold to you in that he would otherwise have received less, and you did a favor for the person who bought from you because he otherwise would have had to pay more. You've every right to be richly rewarded, you've earned every penny.

...I've been really bad since the beginning of 2011.

Your honesty goaded me into looking because for quite a while I've not wanted to see that stat.


Huh. Relieved to say I'm up one percent higher than I was on Jan. 1, 2011!

 

[thereisnospoon]

Because the first two were so successful. What makes anyone think our problem is high interest rates?
Fed Pulls Trigger, to Buy Mortgages in Effort to Lower Rates - Yahoo! Finance

This is a going to be a huge kick in the balls.
Bernanke is a fucking asshole. I don't care how much education he has. With this last move, he is obviously a smart guy but not very intelligent.
Clearly this is political. It has to be. Because while it may give the stock markets a nice little sugar rush, QE "forever" will not help in fact it will damage the economy. Hopefully the American people will notice it soon enough to make sure they know who is to blame. President Obama. This newest QE was done to help the President. No doubt about it.
And if it wasn't, then the people on the Federal Reserve Board should be fired..
$40 billion per monthly buying mortgage backed securities. This is the SAME thing that trashed the housing markets back in 2008....Now the fucking federal government is doing it again... Unreal.
This Administration is waging an economic war against the American people.