The market loves Ben - Fed considering securities purchase

http://finance.yahoo.com/news/Berna...tml?x=0&sec=topStories&pos=main&asset=&ccode=

"Fed will consider making another large-scale purchase of securities if the slowing economy were to deteriorate significantly and signs of deflation were to flare."

"He downplayed the odds of another recession..."

"...he raised the prospect of another Fed purchase of securities, most likely government debt or mortgage securities, to drive down rates on mortgages and other debt to spur more spending by Americans."

"The issue at this stage is not whether we have the tools to help support economic activity and guard against disinflation. We do," Bernanke said. "The issue is instead whether, at any given juncture, the benefits of each tool, in terms of additional stimulus, outweigh the associated costs or risks of using each tool."

 

"if" must have been typed in the tiniest font in Ben's notes

 

Goe goe pawer Fed-drz...

 

At least we know Ben is not brushing off deflation concerns.

 

Markets would love anyone who indicates they can possibly get cheaper money soon

 

"The issue at this stage is not whether we have the tools to help support economic activity and guard against disinflation. We do," Bernanke said. "The issue is instead that they are not fucking working

 

Indeed. 0% rates, anyone?

 

Deflation = asset prices re-adjusting to new realities. Meanwhile, the public sector continues to spend and increase salaries while the private sector sucks wind.

So, Kassz, should we destroy our currency, emburden all future generations with untold trillions in debt, so that we can "prevent" asset prices from finding a true equilibrium or that bogeyman "deflation" that it seems a particular group of individuals fear more than death itself.

 

agreed.
but 168 points? sheesh!
you'd think ben yelled, "free money!!"

 

Please, only fools will be fooled by FED speak and Pundits jumping up and down about how we are in Recovery mode.

Of course this light volume short covering, is to get outa the way of a short term push by "FEDS" to prop markets once again. Nobody wants to fight the fed.

However, Business leaders, in the shit...working everyday see different. The do not see any turnaround till maybe 2011 and give no signs as to hiring until mid 2011. I am in their camp.

I see nothing positive...even if earnings were better than last year...but then look at the over all "Growth" and the true numbers...comparied to other recessions...and the Earnings over all look horriable along with forward Guidence.

Anyone who went long today's rally with the idea of building positions to carry long term, or adding to their 401k,just bought bullshit, hook, line and sinker.