Qe 3??

[Brutus]

Ancient Rome couldn't have transferred wealth from the middle class to the elitist as fast as Bush/Obama has done.
History books will write that this period of time was the beginning of the end of America as it was.

they say only a fool predicts the future. Do you recommend we sell everything possible and buy gold?? Have you done that?

 

[iamwhatiseem]

Ancient Rome couldn't have transferred wealth from the middle class to the elitist as fast as Bush/Obama has done.
History books will write that this period of time was the beginning of the end of America as it was.

they say only a fool predicts the future. Do you recommend we sell everything possible and buy gold?? Have you done that?

No I recommend you sell everything and move way in the hills (however far it takes to where there is no internet available)

 

[Brutus]

Ancient Rome couldn't have transferred wealth from the middle class to the elitist as fast as Bush/Obama has done.
History books will write that this period of time was the beginning of the end of America as it was.

they say only a fool predicts the future. Do you recommend we sell everything possible and buy gold?? Have you done that?

No I recommend you sell everything and move way in the hills (however far it takes to where there is no internet available)

with no connection I could not get readings from your crystal ball?

 

[iamwhatiseem]

they say only a fool predicts the future. Do you recommend we sell everything possible and buy gold?? Have you done that?

No I recommend you sell everything and move way in the hills (however far it takes to where there is no internet available)

with no connection I could not get readings from your crystal ball?

That's the best you got?

<flip>...here's a nickel kid...go buy you some gum.

 

[Toro]

he he ...I hate being right....well wait- in all fairness the good ship QE3 has not sailed yet, but look, its either that or..? see below.

we have boxed ourselves in. *shrugs*..and this is the easiest way out for Obama. The higher rates would panic anyone left there is to panic.


Horrible 5 Year Auction Sends Treasury Complex Into A Tailspin, 5 Year Yield Surges 22 Bps In Two Days

It has been a long time since we had seen a 5 Year auction as ugly as today's: printing at a 1.615% high yield, the 5 Year had a 3.5 bps tail off the bat to the 1.58% WI where it was trading before. The internals were just as ugly, with the Bid To Cover coming at 2.59 a plunge from May's 3.20, and the lowest since June 2010. Not surprisingly, Indirect interest evaporated once again, tumbling from 47.1% to just 37.6%, with Primary Dealers having to take up more than half, or 52.1%, and the remainder going to Direct Bidders. Too bad they will have no more opportunities to flip these back to the Fed. Which as expected starts to confirm Bill Gross' thesis that in the absence of the Fed monetizing, rates are about to go higher. One look at the second chart shows the relentless selling in bonds since Sunday. And as reported previously, with a barrage of issuance due in the months following the debt ceiling hike, which will probably be some time in July or August, look for the sell UST thesis to start getting its long overdue confirmation. In the meantime, the 5 Year yield has surged from 1.35% yesterday to 1.5727%, a mindnumbing move.

more at zero hedge | on a long enough timeline, the survival rate for everyone drops to zero

I don't think this is a big deal. Rates have collapsed and Treasuries were extremely overbought. With Risk On back in the markets this week, Treasuries were due for a reversal.

PS Take Zero Hedge with a big grain of salt. I like the site but it traffics in The Financial Apocalypse and various conspiracy theories.

 

[KissMy]

I had heard on CNBC that the money from the maturing bonds held by the Federal Reserve is now enough to purchase all that the treasury is selling. If this is true then the deficit is totally monetized. The Fed has said it is rolling all the maturing bond dollars back into the bond market so additional QE in the bond market will make no difference.

They have to find additional ways to inject dollars into the economy. I believe that is why Obama opened up the Oil Reserve. If Congress does not raise the debt limit, the Fed will have a hard time injecting money into the economy.

 

[Brutus]

I had heard on CNBC that the money from the maturing bonds held by the Federal Reserve is now enough to purchase all that the treasury is selling. If this is true then the deficit is totally monetized. The Fed has said it is rolling all the maturing bond dollars back into the bond market so additional QE in the bond market will make no difference.

actually the Fed is using the interest it is earning on the bonds it holds to buy more treasuries. They have enough to buy about 30% of what they were buying( 70% of all Treasury debt) so you might call this QE 3.3. It is a logical transition rather than going cold turkey.

They have to find additional ways to inject dollars into the economy. I believe that is why Obama opened up the Oil Reserve. If Congress does not raise the debt limit, the Fed will have a hard time injecting money into the economy.

no idea why oil reserves would inject money. That would inject oil would inject

 

[Toro]

I had heard on CNBC that the money from the maturing bonds held by the Federal Reserve is now enough to purchase all that the treasury is selling. If this is true then the deficit is totally monetized. The Fed has said it is rolling all the maturing bond dollars back into the bond market so additional QE in the bond market will make no difference.

They have to find additional ways to inject dollars into the economy. I believe that is why Obama opened up the Oil Reserve. If Congress does not raise the debt limit, the Fed will have a hard time injecting money into the economy.

I don't think that's true. $300 billion of the Fed's holdings are going to run off over the next year while the deficit will be $1.5 trillion. The Fed's balance sheet is $2.2 trillion.

 

[Toddsterpatriot]

I had heard on CNBC that the money from the maturing bonds held by the Federal Reserve is now enough to purchase all that the treasury is selling. If this is true then the deficit is totally monetized. The Fed has said it is rolling all the maturing bond dollars back into the bond market so additional QE in the bond market will make no difference.

They have to find additional ways to inject dollars into the economy. I believe that is why Obama opened up the Oil Reserve. If Congress does not raise the debt limit, the Fed will have a hard time injecting money into the economy.

You must have misheard. The maturing bonds in their $2.9 trillion portfolio isn't nearly enough to buy the $1.5 trillion or so the Treasury will need to sell in the next year.

 

[Toddsterpatriot]

I had heard on CNBC that the money from the maturing bonds held by the Federal Reserve is now enough to purchase all that the treasury is selling. If this is true then the deficit is totally monetized. The Fed has said it is rolling all the maturing bond dollars back into the bond market so additional QE in the bond market will make no difference.

actually the Fed is using the interest it is earning on the bonds it holds to buy more treasuries. They have enough to buy about 30% of what they were buying( 70% of all Treasury debt) so you might call this QE 3.3. It is a logical transition rather than going cold turkey.

They have to find additional ways to inject dollars into the economy. I believe that is why Obama opened up the Oil Reserve. If Congress does not raise the debt limit, the Fed will have a hard time injecting money into the economy.

no idea why oil reserves would inject money. That would inject oil would inject

They aren't using interest to buy new bonds, just the principal.

 

[Trajan]

he he ...I hate being right....well wait- in all fairness the good ship QE3 has not sailed yet, but look, its either that or..? see below.

we have boxed ourselves in. *shrugs*..and this is the easiest way out for Obama. The higher rates would panic anyone left there is to panic.


Horrible 5 Year Auction Sends Treasury Complex Into A Tailspin, 5 Year Yield Surges 22 Bps In Two Days

It has been a long time since we had seen a 5 Year auction as ugly as today's: printing at a 1.615% high yield, the 5 Year had a 3.5 bps tail off the bat to the 1.58% WI where it was trading before. The internals were just as ugly, with the Bid To Cover coming at 2.59 a plunge from May's 3.20, and the lowest since June 2010. Not surprisingly, Indirect interest evaporated once again, tumbling from 47.1% to just 37.6%, with Primary Dealers having to take up more than half, or 52.1%, and the remainder going to Direct Bidders. Too bad they will have no more opportunities to flip these back to the Fed. Which as expected starts to confirm Bill Gross' thesis that in the absence of the Fed monetizing, rates are about to go higher. One look at the second chart shows the relentless selling in bonds since Sunday. And as reported previously, with a barrage of issuance due in the months following the debt ceiling hike, which will probably be some time in July or August, look for the sell UST thesis to start getting its long overdue confirmation. In the meantime, the 5 Year yield has surged from 1.35% yesterday to 1.5727%, a mindnumbing move.

more at zero hedge | on a long enough timeline, the survival rate for everyone drops to zero

I don't think this is a big deal. Rates have collapsed and Treasuries were extremely overbought. With Risk On back in the markets this week, Treasuries were due for a reversal.

PS Take Zero Hedge with a big grain of salt. I like the site but it traffics in The Financial Apocalypse and various conspiracy theories.

I understand , but we ARE in the apocalypse!!! what kind of Illuminati are you?

anyway yes, bonds are being shuffled and drowned, but, how are we going to finance the latter half of the year?

 

[Toro]

he he ...I hate being right....well wait- in all fairness the good ship QE3 has not sailed yet, but look, its either that or..? see below.

we have boxed ourselves in. *shrugs*..and this is the easiest way out for Obama. The higher rates would panic anyone left there is to panic.


Horrible 5 Year Auction Sends Treasury Complex Into A Tailspin, 5 Year Yield Surges 22 Bps In Two Days

It has been a long time since we had seen a 5 Year auction as ugly as today's: printing at a 1.615% high yield, the 5 Year had a 3.5 bps tail off the bat to the 1.58% WI where it was trading before. The internals were just as ugly, with the Bid To Cover coming at 2.59 a plunge from May's 3.20, and the lowest since June 2010. Not surprisingly, Indirect interest evaporated once again, tumbling from 47.1% to just 37.6%, with Primary Dealers having to take up more than half, or 52.1%, and the remainder going to Direct Bidders. Too bad they will have no more opportunities to flip these back to the Fed. Which as expected starts to confirm Bill Gross' thesis that in the absence of the Fed monetizing, rates are about to go higher. One look at the second chart shows the relentless selling in bonds since Sunday. And as reported previously, with a barrage of issuance due in the months following the debt ceiling hike, which will probably be some time in July or August, look for the sell UST thesis to start getting its long overdue confirmation. In the meantime, the 5 Year yield has surged from 1.35% yesterday to 1.5727%, a mindnumbing move.

more at zero hedge | on a long enough timeline, the survival rate for everyone drops to zero

I don't think this is a big deal. Rates have collapsed and Treasuries were extremely overbought. With Risk On back in the markets this week, Treasuries were due for a reversal.

PS Take Zero Hedge with a big grain of salt. I like the site but it traffics in The Financial Apocalypse and various conspiracy theories.

I understand , but we ARE in the apocalypse!!! what kind of Illuminati are you?

anyway yes, bonds are being shuffled and drowned, but, how are we going to finance the latter half of the year?

If the economy is better, with higher interest rates. If the economy is slow, the government will have no problem selling it's bonds. The incremental bid which drove the 10 year yield to below 3 over the past few months wasn't from the Fed.

 

[Trajan]

I don't think this is a big deal. Rates have collapsed and Treasuries were extremely overbought. With Risk On back in the markets this week, Treasuries were due for a reversal.

PS Take Zero Hedge with a big grain of salt. I like the site but it traffics in The Financial Apocalypse and various conspiracy theories.

I understand , but we ARE in the apocalypse!!! what kind of Illuminati are you?

anyway yes, bonds are being shuffled and drowned, but, how are we going to finance the latter half of the year?

If the economy is better, with higher interest rates. If the economy is slow, the government will have no problem selling it's bonds. The incremental bid which drove the 10 year yield to below 3 over the past few months wasn't from the Fed.

I think I must be misunderstanding you I think, we will sell bonds via lower rates?

 

[Toro]

I understand , but we ARE in the apocalypse!!! what kind of Illuminati are you?

anyway yes, bonds are being shuffled and drowned, but, how are we going to finance the latter half of the year?

If the economy is better, with higher interest rates. If the economy is slow, the government will have no problem selling it's bonds. The incremental bid which drove the 10 year yield to below 3 over the past few months wasn't from the Fed.

I think I must be misunderstanding you I think, we will sell bonds via lower rates?

When the economy slows, demand for government bonds rises and interest rates fall. That is what has happened over the past three months. Interest rates on 10 year Treasury bonds fell to 2.9% as investors sold stocks and bought Treasuries. At the same time, demand from the Fed has fallen as Fed purchases have declined as QE2 winds down. Demand for Treasuries will remain strong and thus interest rates remain low if the economy remains weak. That is of course assuming the government doesn't do anything stupid like default on the debt. If that happens all bets are off.

 

[Trajan]

well, here we go, earlier than I thought too;

In Congressional testimony, Bernanke acknowledged the Fed was prepared to embark on what some market participants have long feared: a third round of quantitative easing (QE3) to jumpstart an admittedly weak recovery.



Euro Surges On Risk As Bernanke Warns That QE3 May Be Needed - WSJ.com


also- hes gonna hold rates at near zero, oil surged, gold yea baby....but alas, this blows long term.

 

[Wiseacre]

Smoke and mirrors. The truth is there ain't diddly fuck Bernanke can do to fix unemployment or grow the economy to an significant degree. Not with the way Obama is running things, all those anti-business policies and rhetoric have come come to roost.

 

[Toro]

well, here we go, earlier than I thought too;

In Congressional testimony, Bernanke acknowledged the Fed was prepared to embark on what some market participants have long feared: a third round of quantitative easing (QE3) to jumpstart an admittedly weak recovery.



Euro Surges On Risk As Bernanke Warns That QE3 May Be Needed - WSJ.com


also- hes gonna hold rates at near zero, oil surged, gold yea baby....but alas, this blows long term.

Took the market - and me - by surprise. But it made me happy! Made up much of my losses for the year over the past 30 hours! Thanks Ben!

 

[Brutus]

well, here we go, earlier than I thought too;

In Congressional testimony, Bernanke acknowledged the Fed was prepared to embark on what some market participants have long feared: a third round of quantitative easing (QE3) to jumpstart an admittedly weak recovery.



Euro Surges On Risk As Bernanke Warns That QE3 May Be Needed - WSJ.com


also- hes gonna hold rates at near zero, oil surged, gold yea baby....but alas, this blows long term.

Took the market - and me - by surprise. But it made me happy! Made up much of my losses for the year over the past 30 hours! Thanks Ben!

lets remember that Ben is a Washington bureaucrat who is only making things worse in the long run by printing money. Take your profits while you can.

 

[KissMy]

Wow - We could not even make it more than 11 days since QE2 before the FED had to start jawboning about starting the printing press to get the markets to move up. We are addicted like a Crack addict to Stimulus!

 

[Brutus]

Wow - We could not even make it more than 11 days since QE2 before the FED had to start jawboning about starting the printing press to get the markets to move up. We are addicted like a Crack addict to Stimulus!

Yes Bernanke may not have the guts for the job. When Volker knew he had to jack rates way up to end Carter's inflation with a sharp recession he said, "will you still love me when there is blood in the streets."

Bernanke seems to lack what it takes.