Posted on 09/21/2011 12:03:19 PM PDT by Qbert
Stocks are tumbling harder now, despite a slightly more generous than expected Fed announcement.
Was it the fact that the Fed was delayed by a copier jam? Was it the three dissents?
Maybe. Or maybe it’s this striking downgrade of the economic outlook:
In this statement, the Fed said:
“Moreover, there are significant downside risks to the economic outlook, including strains in global financial markets.”
In its prior statement, the Fed said simply:
“Downside risks to the economic outlook have increased.”
The Dow is down 130 points to 11277. The S&P is down about 16 points. The Nasdaq is down 6 points.
(Excerpt) Read more at blogs.wsj.com ...
“Moreover, there are significant downside risks to the economic outlook, including strains in global financial markets.”
Great.
“...strains in global financial markets.”
What?!
Who knew?
8-D
“Not to worry, as soon as Obama gets back to Washington from Martha’s Vineyard he is going to make a big jobs speech and all will be well with the economy.”
Geez, I hope so. Sounds like it can’t miss.
Somebody is going to have to burn down the Fed and hang Bernake before they will quit destroying our wealth.
The Fed simply operates the way politicians want it to operate. If you destroy it the root cause of the problem will still be there.
Selling hard into the close. Even the PPT is going to have problems pulling this one out. Looks like they made the attempt at 3:15 after the initial drop, but it is down again now. -245 at 3:57 Eastern.
“The Fed simply operates the way politicians want it to operate. If you destroy it the root cause of the problem will still be there.”
I agree 100%. Everyone here was pooping on the Fed for QE I and QE II and would continue to do so all the way through QE XXVIII. The Fed’s “Quantitative Easing” was just a fancy way of saying “papering over the deficit.” If you look at the amount of deficit spending less foreign purchases of Treasury Notes, and compare the remainder to the amount of the QE initiatives, there is a rough parity.
My point is that the Fed really has no choice. It’s the “lender” of last resort to the U.S. Government. As long as the Feds keep running huge deficits, the Fed will have to cover them.
Somebody is going to have to burn down the Fed and hang Bernake before they will quit destroying our wealth.
Like the scene in Blazing Saddles when the gunslinger chugs down half a quart of whiskey and the sheriff says “a man who drinks like that is going to die!”
Gene Wilder looks up and says, in a hopeful voice, “WHEN?”
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