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QE3 May End As Soon As September (Stocks Fall)

From an unfazed New York Times:

Tapering of Stimulus Could Start as Soon as September, 2 Fed Presidents Hint

By NELSON D. SCHWARTZ | August 6, 2013

Two Federal Reserve regional presidents suggested on Tuesday that the central bank could ease its extraordinary efforts to stimulate the economy sooner rather than later, but stopped short of providing an exact time frame.

Charles L. Evans, the president of the Federal Reserve Bank of Chicago, said he would not rule out the possibility that the Fed could start tapering as early as next month.

The remarks came at a breakfast with reporters in Chicago and echoed through the markets during the day..

In a separate interview with Market News International, the president of the Federal Reserve Bank of Atlanta, Dennis P. Lockhart, also indicated a September move was an option…

On Wall Street, which has benefited from the Fed’s accommodative stance, stocks dropped after the comments, and major market indexes closed lower by a little more than half a percentage point…

Funny, but we don’t recall The Times or any others news media admitting the Federal Reserve has been pumping up the stock market with Mr. Bernanke’s printing press in the sky. They certainly never admitted it before the 2012 elections. Why was that, do you think?

The Times of any others in the news media mentioning how much the Federal Reserve has been pump up the stock market until after the 2012 elections. Why was that, do you think?

From the Associated Press:

World stocks down, Fed official flags stimulus end

By PAMELA SAMPSON | August 7, 2013

BANGKOK (AP) — World stock markets fell Wednesday, led by a plunge in Japan’s benchmark index, as expectations mounted that the U.S. central bank will begin to phase out its monetary stimulus next month.

Positive U.S. trade data and comments by a Federal Reserve bank regional president increased speculation that the Fed could begin reducing its monthly $85 billion in asset purchases in September. The program has helped keep interest rates super-low in order to spur growth. But it also had the unintended effect of pushing up stock markets, where investors have fled in search of returns that outpace bonds…

"Unintended" our Aunt Fanny. There are no unintended consequences with Obama. He had to find some way to pay back the fat cats who gave him a cool $1 billion dollars for his last campaign.

By the way, what ‘growth was spurred’? Last we checked the GDP was 1.7%.

In early European trading, Britain’s FSTE 100 fell 0.5 percent to 6,574.34 and Germany’s DAX lost 0.6 percent to 8,250.52. France’s CAC-40 fell 0.5 percent to 8,250.44. Futures augured a lower open on Wall Street. Dow Jones futures fell 0.5 percent to 15,404 while S&P 500 futures shed 0.5 percent to 1,686.30.

Japan’s Nikkei 225 index suffered sharp losses, partly attributed to a rise in the yen. The benchmark closed 4 percent lower to 13,824.94. South Korea’s Kospi fell 1.5 percent to 1,878.33. Australia’s S&P/ASX 200 shed 1.9 percent to 5,011.30. Hong Kong’s Hang Seng was 1.5 percent down at 21,588.84 in the absence of fresh buying incentives…

In other words, hold on to your hat.

Benchmark oil for September delivery was down 13 cents to $105.18 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.26 to close at $105.30 a barrel on the Nymex on Tuesday…

Once again proving that the price of oil and so many other things have been driven up by printing all this money and thereby devaluing the dollar.

This article was posted by Steve on Wednesday, August 7th, 2013. Comments are currently closed.

3 Responses to “QE3 May End As Soon As September (Stocks Fall)”

  1. GetBackJack says:

    (running around in the yard)

    “OMG, no more US Treasury purchase of stocks! No more US Treasury purchase of stocks! What can we do? Oh Noes!”

  2. Petronius says:

    All of the markets are being driven by Fed money printing and rumors about Fed money printing.

    Not only stocks but bonds, commodities, and currencies. Thus whenever there are hints or suggestions about Fed tapering its Quantitative Easing program, the US dollar rises and stocks, bonds, foreign currencies, and commodities fall.

    Every day millions of dollars change hands based on the latest Fed rumor.

    So much for free market economics.

    By the way, did you ever stop to think if the US had a war with China we’d have to borrow the money from China to fight the war?

  3. captstubby says:

    we’d have to borrow …”
    who watches the watchers?

    The Daughters of the American Revolution (DAR)
    ” A non-profit group, they work to promote historic preservation, education and patriotism.

    The DAR awards $150,000 per year in scholarships to high school graduates.
    Andrew Jackson started a tradition that continues to this day: every year, the Daughters of the American Revolution inspect the gold at Fort Knox to make sure it is still there.

    When Eisenhower took office in 1953, a group of conservative Republicans claimed that the outgoing Democrats had been stealing gold deposits from Fort Knox.
    Bowing to pressure from the Daughters of the American Revolution, Eisenhower had the gold counted. Sure enough, it came up ten bucks short: The depository contained only $30,442,415,581.70.
    Truman’s treasurer, Georgia Clark, rolled her eyes and sent a check to cover the shortfall.”

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