July 31, 2013
A very volatile day in stocks ended with a violent high volume dump from post-FOMC highs on heavy MoC selling pressure that left the S&P and Dow with red closes. S&P futures still managed their best month since Oct 2011 – though unable yet again to capture the 1,700 flag. The size and scale of the ‘rotation’ into the close (and strength in bonds) leaves us wondering who is buying and who is selling. For some context, post-FOMC, S&P -4pts, 10Y -8bps, Gold +$10, USD -0.15%; so it seems bonds benefited the most and stocks seem to be crying out for moar. The Dow has now closed red for 3 days-in-a-row – the worst streak in seven weeks.
How long do you think print, print print will work before peopl figure out the phony numbers are just to distract the unwary?
Markets are going sideways … with a down trending.
March 27, 2013
“One thing that makes it very hard to forecast home prices right now is that we’re living in a totally artificial real estate economy,” said Shiller, co-creator of the Standard & Poor’s/Case-Shiller Index, a widely followed measure of housing prices.
Shiller pointed to the Federal Reserve, which last week reaffirmed its policies on bond purchases and record-low interest rates. In September, the Fed launched a third round of quantitative easing (QE), in which it has bought $40 billion of mortgage-backed securities per month, primarily in mortgage-backed bonds.
Meanwhile, Fannie Mae and Freddie Mac, the two largest U.S. home funding sources, remain in government conservator-ship as Congress looks for ways to raise new tax revenues, Shiller noted.
“All of these things are weighing on the futures of housing,” Shiller said on CNBC’s “Futures Now,” adding the recovery might even be a bubble. “One thing you learn from history is that bubbles can occur at any time.”
March 21, 2013
OK so today the Fed says they are going to keep on printing. Until the economy improves.
The latest on the recovery.
WASHINGTON– The Federal Reserve said Wednesday that the U.S. economy has strengthened after pausing late last year but still needs the Fed’s extraordinary support to help lower high unemployment.
In a statement after a two-day meeting, the Fed stood by its plan to keep short-term interest rates at record lows at least until unemployment falls to 6.5 percent, as long as the inflation outlook remains mild. And it says it will continue buying $85 billion a month in bonds indefinitely to keep long-term borrowing costs down.
Read more at manufacturing.net …
But apparently they didn’t tell the same story to those who know better. You see how it works? Differing stories for different audiences.