Fed will be moving to remove cash from Economy

Discussion in 'Economy' started by JimH52, Oct 24, 2009.

  1. JimH52
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    JimH52 Gold Member

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  2. Toro
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    Toro Diamond Member

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    It is unlikely the Fed will start removing reserves from the economy until there are signs the economy is beginning to substantially recover. Some reserves will removed as swaps with central banks expire but the Fed does not wish to trigger another leg down in the economy.
     
  3. JimH52
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    JimH52 Gold Member

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    There are signs of recovery with housing sales up and the market surge If there is any sign of inflationary pressure, the Fed will move.
     
  4. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    The Fed is a privately run institution. The money supply is out of everyones hands except those at the Federal Reserve Bank.
     
  5. Neubarth
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    Neubarth At the Ballpark July 30th

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    Housing sales are not REALLY up. Auction sales of foreclosed properties are up. Take the auction sales away, and housing sales are DOWN. The Market Surge is not a sign of recovery. It is a sign of stupidity.
     
  6. Oddball
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    Oddball BANNED Supporting Member

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    For the Fed to take cash out of the stream, they would first have to stop monetizing the debt....Which they haven't.

    Looks like a big week for hoaxes. :lol:
     
  7. Paulie
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    Paulie Platinum Member

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    But don't pretend the Fed's moves aren't politically motivated though.

    Anyway, is there any kind of plausible information for the OP's claim? A link?

    Because last word from the FOMC was that rates were staying at this level for quite some time.

    Don't get my hopes up without some kind of proof :lol:

    Nevermind, missed the link.

    It says 6 months out from now. That's what the Fed has already said. You're BEYOND fashionably late on this my man.

    Let's hope 6 months from now isn't already too late. If they extend that $8k first time home buyer credit and it coincides with job adds, the fed needs to start raising rates IMMEDIATELY.

    If those reserves start hitting the streets in force, we're so fucked.

    Bernanke's "exit strategy" is "pray".
     
    Last edited: Oct 24, 2009
  8. The Rabbi
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    The Rabbi Diamond Member

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    I strongly suspect the Fed will respond the world criticism of the overhang on dollars and begin tightening. They will raise rates as the last step. They have already begun to eliminate programs they previously had.
    If so, gold is in for nose dive.
     
  9. Paulie
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    Paulie Platinum Member

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    Name ONE they "eliminated". Not one that expired, but one they actually ELIMINATED.

    You're confusing eliminated, which would be a move they intentionally made, with expiry of a facility/program.

    Why the fuck are you still posting in the econ forum??
     
  10. Paulie
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    Paulie Platinum Member

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    Most of the facilities they currently utililze expire on 31 December, and some have been extended until February.

    Just another reason you put me on ignore, you pussy. Because I make you look like a damn idiot around here. You know it, I know it, and several others here know it as well.
     

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