Wall Street Expects Fed Money Printing

From Bloomberg:

Stocks surged on Tuesday, with the S&P 500 and the Nasdaq up more than 2 percent, as buyers emerged before a highly anticipated address by Federal Reserve Chairman Ben Bernanke later this week.

Technology and other growth stocks drove much of the market’s gains, with the S&P Information Technology Index .GSPF up 2.4 percent.

A weaker-than-expected reading of the U.S. housing sector was the latest in a string of discouraging data that has raised expectations the Fed will take measures to prop up the economy…

Also hoping for a bit of Fed printing would be Obama and his Democrats…because only a boatload of “free” money can keep our financial system from falling apart over the next month or two, leading to a pretty bad recession.  Thing is, I don’t know if it would work – or, at least, work well enough to keep us out of official recession through the 2012 election.  A lot of observers are figuring that Bernanke has shot his bolt…all he can do by printing at this point is massively stoke inflation by killing the value of the dollar.  And, of course, even if Bernanke and the Banksters keep things afloat through 2012, it would be just scheduling a massive recession for 2013…that wouldn’t bother Obama, of course, because by then he’ll never have to face the voters again.

We’ll see how it comes out – but do note with care the sickness of our financial elite….hoping that the government will essentially steal your money via inflation in order to bail them out.  Gigantic reforms need to be undertaken to create a free, transparent market where Wall Street gamblers are replaced by careful investors.

 

21 thoughts on “Wall Street Expects Fed Money Printing

  1. Options Trading Tutorial August 23, 2011 / 2:30 pm

    I don’t see what other options they have. Rumors of “operation twist” to pull down long term yields and push up short term yields are probably closest to the truth.

    • Mark Edward Noonan August 23, 2011 / 4:14 pm

      Options,

      For those of us unfamiliar with the more arcane aspects…what, exactly, would that attempt to accomplish?

      • Options Trading Tutorial August 25, 2011 / 11:36 am

        Operation twist would attempt to raise short term rates (increasing fixed income) and perhaps putting a damper on commodities inflation while at the same time keeping long term rates low (keeping mortgage rates low).

        The idea is to boost the income of savers / retirees, keep consumable prices in check, and keep the value of long term assets reasonably high but keep them affordable by keeping long term borrowing costs down.

        Whether it will work??

  2. RetiredSpook August 23, 2011 / 3:36 pm

    One need look no farther than financial sector headlines to see which is more important to the direction of the market: free money or good news.

    Markets rock and roll

    Stocks extend rally after a wave of bad-but–not-horrible data from U.S., Europe and China.

    You just can’t make this stuff up.

    • Mark Edward Noonan August 23, 2011 / 4:14 pm

      Spook,

      Yep – on the day home sales came in at a level which will likely make 2011 the very worst year, ever, stocks surge 322 points…it is back to 2008 where the bad news is rated as “good” because it means the Fed will intervene…but, will it? Or, if it does, would it do any good? Time will tell…but this is an economy on life support.

      • neocon1 August 23, 2011 / 7:29 pm

        CUT SPENDING lower than revenue….accounting 101

        PS
        heads up……
        while gold is up I had the Princess collect all her old rings/ bracelets/ earrings etc. The jewelery filled about 3/4 of a sandwich size zip lock, bag. Took them to the local jewelery store buying gold.

        GOT $2300.00 for it.
        Schweeeet

      • thomasg0102 August 23, 2011 / 9:06 pm

        Mark,

        the housing market has been bad the past 2 years. That doesn’t affect the market anymore. It’s corporate profits and monetary policy that the market is interested in.

        hooray for Bernanke! you should be happy right now if you have a 401k, it will be going up.

      • neocon1 August 23, 2011 / 9:14 pm

        tommie hamas

        401K became .04K now is a .4K and we should be happy…….

        MORE KOOL AID for kneepad tommy and the gang.

      • thomasg0102 August 23, 2011 / 9:19 pm

        neo,

        what was the stock market at on Jan 21, 2009??? and what is it at now, today???

        can you answer that simple question drone?

      • neocon1 August 23, 2011 / 9:32 pm

        jomama raghead

      • thomasg0102 August 23, 2011 / 9:36 pm

        so you admit you’re a bad investor huh? sucks to be you man, I made a killing this past 2.5 years under this President.

        2009 – 17% return
        2010 – 13.5% return
        2011 so far 3.1%

        I am loving it! sucks to be you. I would tell you ill advise you on your investments, but you can’t afford to pay me.

      • neocon1 August 23, 2011 / 9:37 pm

        better yer turbantommy

        Democrats take control over Congress Jan. 2007. Recession begins Dec. 2008.

        United States bear market of 2007–2009

        amnesia???????

      • thomasg0102 August 23, 2011 / 9:39 pm

        obviously you’re impervious to facts. that’s ok.

        you deny that the market went up during this President’s term? do you deny that the economy collapsed under the previous President?

        I want to get you on record….if you are man enough that is.

        ps. posting links from fox news and american thinker aren’t usually good enough to convince anyone….but green and mark.

        good try though grandpa.

      • Mark Edward Noonan August 23, 2011 / 9:43 pm

        Thomas,

        Not noticing that your return has cratered since 2009? That just a bit more dip in 2011 and you’ll go negative for the year?

        Talk about not seeing the writing on the wall…

        As for me, I did see the writing…and so converted my 401K to much safer financial instruments just before that first 500-odd point drop a few weeks ago…so, I’ve lost about 70 bucks over the past two months.

      • neocon1 August 23, 2011 / 9:44 pm

        tommyturban

      • neocon1 August 23, 2011 / 9:46 pm

        but you can’t afford to pay me.

        Heh Heh Heh

        oh you are soooo correct akbar.

      • Sunnier August 27, 2011 / 1:25 pm

        hooray for Bernanke! hahahahahahaha

  3. js August 24, 2011 / 8:21 am

    according to drudge…the federal government spends about 3 million dollars per minute…the national DEBT increased 4.9 TRILLION dollars in 945 days…aint dat sumtin? put a free country into the hands of a marxist…and in 945 days he spends more money than every president before him…by a huge margin…compared to WWII, which cost the US 288 BN front start to end…obieOne has spend 4 times that total…per yet…of his yet to be 3 years in office…and he was born a british citizen…paybacks a beoch eh?

    but in the end….as our dollar weakens…and money itself becomes worthless…they just plug in the ole money printing machines and give it to the bankers to reap untold billions in profits with our tax dollars…cheapening our savings and the value of our homes…

    with 300mn people in the USA…and the Govt spending 3 million per minute…its safe to say they could actually take a break on spending…and send a check to every mortgage holder in the nation…to pay off every mortgage on every home…which was about 2.4 Tn dollars…and he would have totally cured the economic crisis…the cost of living for homeowners would have dropped to a negligible amount…and it would have been just fine for folks to work for a lot less to pay the bills then to have waster the trillions on stimulusmorphic lies and dreams of omieOnes fathers marxist society….

    • Sunny August 24, 2011 / 11:46 am

      js, just curious – did drudge say what we are spending money on?

      • tiredoflibbs August 24, 2011 / 12:03 pm

        Doesn’t matter, obAMATEUR spent it. Why don’t you ask him on what he spent over $4 trillion.

        He will outpace Bush in less than half the time. Yet, you lib looters, moochers and drones complained about Bush spending and driving up the debt. But when your party takes over, those complaints are non-existent.

        We conservatives on the other hand complained about Bush’s spending and you can read it here on B4V.

        You, dreggs, are a drone and a hypocrite.

  4. naceyprint November 25, 2011 / 8:26 pm

    Excellent Publish, very informative. Im wondering why the other experts of this sector don’t notice this. You must continue your writing. I’m confident, you’ve a huge range of readers’ base already. visit http://www.naceyprint.com

Comments are closed.