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The Fed Disappoints... The Great Collapse is Here
Zero Hedge ^
| 09/22/2011
| Graham Summers
Posted on 09/22/2011 7:51:20 AM PDT by SeekAndFind
Ive been warning for weeks now that the Fed would disappoint with its September meeting. And boy did it.
As I forecast, the Fed didnt announce QE 3. In fact, it didnt announce any new policy of note. Instead it is simply reshuffling its holdings to focus more on the long end of the bond markets.
On top of this, the Fed announced it will only be moving roughly $400 billion of its portfolio around. This is the smallest major intervention the Fed has announced since it began implementing QE in 2009 (QE 1 was $1.25 trillion while QE 2 was $600 billion). Indeed, this move is on par with the Feds implementation of QE lite which to date has been about $300 billion give or take in scope.
Even more striking, while announcing this disappointing move, the Fed downgraded its view of the economy stating, there are significant downside risks to the economic outlook.
Previously, any admission of economic deterioration from the Fed resulted in the US Dollar selling off sharply as traders expected additional easing/ printing. This time around, the market senses that the Fed has disappointed and that the Feds move is largely symbolic more than anything else.
The end result of this: the market is Crashing just as I warned. The S&P 500 has gone from 1,200+ to 1,136, a 6% drop, in the overnight session.
Were just getting started here. Today we got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.
It's just triggered again... which means that today's sell off is JUST the beginning of what's coming. Indeed, I fully believe that the Great Collapse, the time when the Fed completely loses control of the markets, has arrived. We're going to be seeing Market Crashes, Bank holidays, riots, food shortages, and more in the coming months.
TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: bondcrash; collapse; default; fed; federalreserve; marketcrash; repudiation
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To: SeekAndFind
Sell now! Panic! Panic! Go strictly on emotion and nothing else!
To: SeekAndFind
I certainly hope he is wrong.
3
posted on
09/22/2011 7:54:58 AM PDT
by
jpsb
To: SeekAndFind
“We’re going to be seeing Market Crashes, Bank holidays, riots, food shortages, dogs and cats living together...real wrath of God stuff!”
4
posted on
09/22/2011 7:55:30 AM PDT
by
rogue yam
To: SeekAndFind
Actually, no QE3 is a very good thing.
The market is going to get alot worse before it gets better though.
Barack Hussein Obama is damage in its purest form and in every aspect.
We are definitely going to pay for the mistake of electing this man, and we are going to pay hardcore.
5
posted on
09/22/2011 7:55:40 AM PDT
by
chris37
(representative)
To: Peter from Rutland
“Those who fear deflation buy bonds; those who fear inflation buy gold; those who cannot decide buy both.”
Can’t remember who said that! Sounds good right now!
6
posted on
09/22/2011 7:57:08 AM PDT
by
silverleaf
(Common sense is not so common - Voltaire)
To: SeekAndFind
Wasn't Bernanke the one who was supposed to be a student and authority on The Great Depression? It seems like all he learned was how to fail, but maybe he is in league with his buddy Hussein 0bama. 0bama wants to be remembered, so he is busy creating
The 0bama Depression.
FUBO GTFO! 486 Days until Noon Jan 20, 2013
7
posted on
09/22/2011 7:57:36 AM PDT
by
The Sons of Liberty
(Psalm 109:8 Let his days be few and let another take his office. - Mene, Mene, Tekel, Upharsin)
To: SeekAndFind
Well, I bought my tractor last weekend, but I still need to get my 40x60 sheet metal building up before it happens. Gotta get that floor poured pronto!
8
posted on
09/22/2011 8:01:39 AM PDT
by
cuban leaf
(Were doomed! Details at eleven.)
To: Peter from Rutland
—Sell now! Panic! Panic! Go strictly on emotion and nothing else!—
That is the first mention of panic in this thread. I believe the OP was talking about trustworthy indicators, as opposed to emotion.
Kinda like when Schiff was laughed at in 2006 when he said that the fundamentals said the bubble was bursting - and he was laughed at on live television by other “economists”. And he was dead right.
9
posted on
09/22/2011 8:03:41 AM PDT
by
cuban leaf
(Were doomed! Details at eleven.)
To: SeekAndFind
Actually, no QE3 is a very good thing.
Yes, maybe also insuring Obamas’ defeat in 2012.
10
posted on
09/22/2011 8:04:23 AM PDT
by
Huskrrrr
To: SeekAndFind
"...
I fully believe that the Great Collapse, the time when the Fed completely loses control of the markets."
Wait...what? Did he just say the Fed controls the markets? Pardon me while I fail to panic, but I think the time has come for us to nationalize the fed. It's insane that the government gave one of their few limited powers to a privately owned banking consortium.
11
posted on
09/22/2011 8:05:04 AM PDT
by
Durus
(You can avoid reality, but you cannot avoid the consequences of avoiding reality. Ayn Rand)
To: SeekAndFind
12
posted on
09/22/2011 8:05:48 AM PDT
by
DuncanWaring
(The Lord uses the good ones; the bad ones use the Lord.)
To: silverleaf
Those who fear deflation buy bonds; those who fear inflation buy gold; those who cannot decide buy both.
Though I did not intend it that way, that is how it has worked out for me. I did put my 401k into bonds too soon though - 2009. My wife’s 401k stayed in stocks and practically caught up with mine, which has much more of my money invested from my pay. I’d like to just cash them both out now, but want to wait “till next year when the tax hit would be much lower. But they may lose more value than that if I wait.
Decisions...
13
posted on
09/22/2011 8:06:47 AM PDT
by
cuban leaf
(Were doomed! Details at eleven.)
To: Huskrrrr
—Actually, no QE3 is a very good thing.—
Concur. The less they do, the better.
14
posted on
09/22/2011 8:08:02 AM PDT
by
cuban leaf
(Were doomed! Details at eleven.)
To: SeekAndFind
Obama - putting the DOW in DOWN
To: cuban leaf
I just wonder how much your wife’s 401K gave back since July and will continue to give back through the end of this year?
My bond fund is doing pretty good, was in the green yesterday and again today amid a sea of red
But we did spend about 10% of what I would call long term savings on precious metals...as an insurance policy
16
posted on
09/22/2011 8:11:07 AM PDT
by
silverleaf
(Common sense is not so common - Voltaire)
To: silverleaf
I mentioned in another thread that it is ALL about precious metals for me. That said, the farm, tractor, building, guns, seed, canning supplies, fenced area for a few head of cattle are even more valuable than the metals. That stuff comes first, metals second, other “investments” last.
17
posted on
09/22/2011 8:14:31 AM PDT
by
cuban leaf
(Were doomed! Details at eleven.)
To: silverleaf
Yikes
18
posted on
09/22/2011 8:21:56 AM PDT
by
BobP
(The piss-stream media - Never to be watched again in my house)
To: SeekAndFind
19
posted on
09/22/2011 8:26:18 AM PDT
by
sayuncledave
(A cruce salus)
To: SeekAndFind
The feds did nothing because they don’t know what to do either.
It’s gotten that bad.
We are in a stinking mess and we have no President.
We have an incompetent Narcissist .
20
posted on
09/22/2011 8:27:45 AM PDT
by
Venturer
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