Dovish Fed Comments Send Futures Soaring
By Barry Ritholtz - November 23rd, 2009, 6:22AM
St. Louis Fed member Bullard said over the weekend that he favors extending the Fed’s program of purchasing mortgage-backed securities beyond the 1st Q next year.
This adds many more months to the low rates for an ‘extended period of time.’ His comments have pummeled the US Greenback, and as the dollar fell, stock futures soared. Gold hit fresh record highs.
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Source: Bloomberg
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Source: The Chart Store
November 23rd, 2009 at 7:16 am
[...] Stocks explode around the world as St Louis Federale makes dovish comments. (TBP) [...]
November 23rd, 2009 at 7:49 am
That is the longest swing in the dollar(time related) without some kind of retracement… seems like it’s saying something.
November 23rd, 2009 at 8:03 am
All Shalom and no Volcker
or as the British say “all talk and no trousers” (’cause they’re on fire)
November 23rd, 2009 at 8:21 am
Yet another Ph.D. from the same camp and with the same certainty in his theories as Bernanke. Amazing that a group of people with no practical experience can be running/ruining such a huge economy.
Of course we have a Prez with the same problem.
November 23rd, 2009 at 8:27 am
Maybe part of the reform of the Fed could be a requirement that no one can be appointed to high position there if he hold’s a Ph.D in economics and doesn’t have at least 10 years in real banking experience.
November 23rd, 2009 at 9:30 am
And the Fed says that their easy money policy is not inflating any bubbles. Yeah, right…
November 23rd, 2009 at 9:43 am
It’s straight from “the Maestro’s” playbook:
Q. How do you solve the fallout from a bursting bubble?
A. Blow a bigger bubble.
November 23rd, 2009 at 10:27 am
More on gold:
New gold bugs making gold investments mainstream
Tudor, Paulson, Greenlight, Hayman bring precious metal in from the fringe
That is a great comprehensive look at the motivations behind the gold trades of some major fund buyers out there
November 23rd, 2009 at 11:41 am
@Mike,
The problem is that those who have “real banking experience” are also the ones who were in the banking business that drove the economy into the ground.
The real problem is that there is no political will or no one with enough political power to actually get the reforms that are needed into law. Everyone worships at the altar of “free markets”, repeating the mantra “government = bad”. We have the best government that money can buy, and no one at the top of these “banks” wants to put any regulations in place that will actually fix this mess, and the dead men walking were not allowed to fail. Our government has decided that banks are more important than people, that profits and the bonus pool matter more than our nation’s economy. When the ordinary man goes into business and the business fails, he loses. When the largest financial companies go into business and they fail, they get bailed out, their executives still get their bonuses, they even get the flu shots that should have gone to children.
I look for more of the same, no matter who is in the WH. The rich and the powerful must be protected at all costs.
December 18th, 2009 at 12:37 pm
[...] Stocks explode around the world as St Louis Federale makes dovish comments. (TBP) [...]