QE3 - The Fed, FOMC, Congress, and Election Year equals... ? - Traders Hideout | futures io social day trading
futures io futures trading


QE3 - The Fed, FOMC, Congress, and Election Year equals... ?
Updated: Views / Replies:17,412 / 208
Created: by Big Mike Attachments:17

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 17  
 
Thread Tools Search this Thread
 

QE3 - The Fed, FOMC, Congress, and Election Year equals... ?

  #81 (permalink)
Elite Member
Aurora, Il USA
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
 
kbit's Avatar
 
Posts: 5,872 since Nov 2010
Thanks: 3,301 given, 3,332 received


syxforex View Post
Corporations are not People

Opening a can of worms with this one....

Reply With Quote
 
  #82 (permalink)
Elite Member
East Coast
 
Futures Experience: Beginner
Platform: Ninja
Favorite Futures: ES, NQ
 
Posts: 125 since Apr 2010
Thanks: 55 given, 81 received


syxforex View Post
Corporations are not People


Darn. I thought that meant that if I broke the law I could tell the judge "I'll pay a small fine, but I'm not admitting to any wrongdoing" too.



Reply With Quote
 
  #83 (permalink)
Site Administrator
Manta, Ecuador
 
Futures Experience: Advanced
Platform: My own custom solution
Favorite Futures: E-mini ES S&P 500
 
Big Mike's Avatar
 
Posts: 46,238 since Jun 2009
Thanks: 29,350 given, 83,218 received


FRB: Press Release--Federal Reserve issues FOMC statement--September 13, 2012

Release Date: September 13, 2012

For immediate release
Information received since the Federal Open Market Committee met in August suggests that economic activity has continued to expand at a moderate pace in recent months. Growth in employment has been slow, and the unemployment rate remains elevated. Household spending has continued to advance, but growth in business fixed investment appears to have slowed. The housing sector has shown some further signs of improvement, albeit from a depressed level. Inflation has been subdued, although the prices of some key commodities have increased recently. Longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee is concerned that, without further policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions. Furthermore, strains in global financial markets continue to pose significant downside risks to the economic outlook. The Committee also anticipates that inflation over the medium term likely would run at or below its 2 percent objective.

To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month. The Committee also will continue through the end of the year its program to extend the average maturity of its holdings of securities as announced in June, and it is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.

The Committee will closely monitor incoming information on economic and financial developments in coming months. If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability. In determining the size, pace, and composition of its asset purchases, the Committee will, as always, take appropriate account of the likely efficacy and costs of such purchases.

To support continued progress toward maximum employment and price stability, the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens. In particular, the Committee also decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that exceptionally low levels for the federal funds rate are likely to be warranted at least through mid-2015.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Jerome H. Powell; Sarah Bloom Raskin; Jeremy C. Stein; Daniel K. Tarullo; John C. Williams; and Janet L. Yellen. Voting against the action was Jeffrey M. Lacker, who opposed additional asset purchases and preferred to omit the description of the time period over which exceptionally low levels for the federal funds rate are likely to be warranted.

Mike

Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help?
1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first.
2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses.
3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make.
4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance.
5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers.
6)
Help using the forum? Watch this video to learn general tips on using the site.

If you want
to support our community, become an Elite Member.

Reply With Quote
The following 2 users say Thank You to Big Mike for this post:
 
  #84 (permalink)
Elite Member
La Jolla, CA
 
Futures Experience: Master
Platform: Sierra Chart, X_Trader Pro, OptionsCity
Broker/Data: Advantage, Trading Technologies, OptionsCity, IQ Feed
Favorite Futures: CL, NG
 
Private Banker's Avatar
 
Posts: 1,040 since Jul 2010
Thanks: 1,713 given, 3,759 received

A truly sad day for the free markets. This will be viewed as a political move as well.

Reply With Quote
The following 2 users say Thank You to Private Banker for this post:
 
  #85 (permalink)
Membership Revoked
British Columbia
 
Futures Experience: Advanced
Platform: NINJA
Broker/Data: ZEN
Favorite Futures: Crude
 
Posts: 1,091 since May 2010
Thanks: 192 given, 484 received

Is Bernanke Dem or Rep, I thought he was appointed by Bush and previously served him as economic adviser?

Reply With Quote
 
  #86 (permalink)
Membership Revoked
British Columbia
 
Futures Experience: Advanced
Platform: NINJA
Broker/Data: ZEN
Favorite Futures: Crude
 
Posts: 1,091 since May 2010
Thanks: 192 given, 484 received

Who benefits the most from QE :: Survey says, the top of the pyramid, the 1% -- It's a great day to be elite..

Reply With Quote
 
  #87 (permalink)
Elite Member
La Jolla, CA
 
Futures Experience: Master
Platform: Sierra Chart, X_Trader Pro, OptionsCity
Broker/Data: Advantage, Trading Technologies, OptionsCity, IQ Feed
Favorite Futures: CL, NG
 
Private Banker's Avatar
 
Posts: 1,040 since Jul 2010
Thanks: 1,713 given, 3,759 received


syxforex View Post
Who benefits the most from QE

As I mentioned in either this thread or another one, those who benefit most from QE are the Primary Dealer Banks. I'm not sure what you're referring to with the "elite" but maybe that was it. If you're referring to the ultra high net-worth people of this country, you're wrong. A mass amount of ultra wealthy individuals are affected by this too (I know that may sound strange but it is true). Many are heavily invested in fixed income securities including municipal bonds and other high(er) credit quality investments. Once you've attained wealth, its more about retaining it vs. taking high risk and being overweighted in equities and other higher risk assets. The Fed's policies have been crushing the fixed income market in terms of yield. Sure the value of the bonds have risen but selling at a premium results in capital gains which is a major issue for someone with a few hundred million dollar fixed income portfolio. Then there's the issue of reinvestment risk. Yields are garbage right now so there's no need to sell out of good paper. Anyway, I always have to crack up when I see people say the elite benefit from this. Unless of course you're solely referring to those on Wall Street that are tied up in company stock and options and their bonuses are reliant upon the company's overall performance. I came from that world and I know all too well how that works...

Aside from that, it is my opinion that the decision to buy MBS was politically influenced in that they are avoiding the issue of deficit spending by buying MBS in lieu of US Treasuries. Another crafty move by the Bernank.


Last edited by Private Banker; September 13th, 2012 at 02:21 PM. Reason: Typo
Reply With Quote
The following user says Thank You to Private Banker for this post:
 
  #88 (permalink)
Site Administrator
Manta, Ecuador
 
Futures Experience: Advanced
Platform: My own custom solution
Favorite Futures: E-mini ES S&P 500
 
Big Mike's Avatar
 
Posts: 46,238 since Jun 2009
Thanks: 29,350 given, 83,218 received

So open-ended/no termination date @ $85 bln/month, am I reading that right?

And 0 - 1/4 % rate thru H1 2015?

Mike

Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help?
1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first.
2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses.
3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make.
4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance.
5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers.
6)
Help using the forum? Watch this video to learn general tips on using the site.

If you want
to support our community, become an Elite Member.

Reply With Quote
 
  #89 (permalink)
Membership Revoked
British Columbia
 
Futures Experience: Advanced
Platform: NINJA
Broker/Data: ZEN
Favorite Futures: Crude
 
Posts: 1,091 since May 2010
Thanks: 192 given, 484 received

Of course printing money always benefits the elite asset owners more than the non-asset owners, whatever those assets are. Bonds or stocks. If you are heavily invested in fixed income securities and the Fed comes along with a plan to buy up debt paper on the incredible scale of these QE programs, then who is benefiting most by the rise in value of those securities? Are you saying because they have to pay tax on their gains that they are better off than the person who does not get his assets inflated and has no gain to pay tax on? Reinvestment risk? If the bank is saying they will do and print anything to inflate the value of assets how is that a negative for the asset holders?

And yes, the Wall Street elites make their money with all this free liquidity. Unbelievable sums, and their hedge fund cronies and clients all get a piece of the pie. It's a great game if you are elite, this endless monetary stimulus. And it sucks for the man on the street. I don't see where you get cracked up on this? I also spent some time in that world. I worked in ear shot from the CFO of Merrill Lynch Investment Banking in Hong Kong. Also worked as interdealer broker, cantor fitzgerald. My client was my frat brother from university days, at the time he was head of equity derivatives sales and trading at Deutch Bank, MD, ... I also know about the game..



Private Banker View Post
As I mentioned in either this thread or another one, those who benefit most from QE are the Primary Dealer Banks. I'm not sure what you're referring to with the "elite" but maybe that was it. If you're referring to the ultra high net-worth people of this country, you're wrong. A mass amount of ultra wealthy individuals are affected by this too (I know that may sound strange but it is true). Many are heavily invested in fixed income securities including municipal bonds and other high(er) credit quality investments. Once you've attained wealth, its more about retaining it vs. taking high risk and being overweighted in equities and other higher risk assets. The Fed's policies have been crushing the fixed income market in terms of yield. Sure the value of the bonds have risen but selling at a premium results in capital gains which is a major issue for someone with a few hundred million dollar fixed income portfolio. Then there's the issue of reinvestment risk. Yields are garbage right now so there's no need to sell out of good paper. Anyway, I always have to crack up when I see people say the elite benefit from this. Unless of course you're solely referring to those on Wall Street that are tied up in company stock and options and their bonuses are reliant upon the company's overall performance. I came from that world and I know all too well how that works...

Aside from that, it is my opinion that the decision to buy MBS was politically influenced in that they are avoiding the issue of deficit spending by buying MBS in lieu of US Treasuries. Another crafty move by the Bernank.


Reply With Quote
 
  #90 (permalink)
Membership Revoked
British Columbia
 
Futures Experience: Advanced
Platform: NINJA
Broker/Data: ZEN
Favorite Futures: Crude
 
Posts: 1,091 since May 2010
Thanks: 192 given, 484 received


And I can tell you the whole thing is a ponzi scheme. My job at ML was to prepare risk reports for a group of equity derivative traders. Pretty easy. Each morning I would put all their positions into my spreadsheets, print out the greeks, and send it to the CFO. If a trader wanted to take a trade outside his risk limits, he would call our desk for approval. Sometimes we would give permission, sometimes we escalated to the risk managers and CFO. Most of the time there wasn't much to do. We sat with the CA's who did the PL each week and month so I had access to view quite a lot of the accounting shenangans. ML at the time at somewhere between 50,000 and 100,000 accounting entities... This derviative trader in this contry offsets this derivatives trade with this guy in this book and all this kind of shit. No one can comprehend that shit, and that's why they went bust. But as long as we keep giving them free month, we can keep playing the game...

Reply With Quote

Reply



futures io > > > QE3 - The Fed, FOMC, Congress, and Election Year equals... ?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Linda Bradford Raschke: Reading The Tape

Elite only

Adam Grimes: TBA

Elite only

NinjaTrader: TBA

January

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Fed's Fisher to Wall Street: QE3 is "fantasy" kbit News and Current Events 0 February 15th, 2012 03:31 PM
Obama's Election-Year Budget to Target Rich Quick Summary News and Current Events 0 February 13th, 2012 07:00 AM
When Doves Laugh: 4 Weeks Until The Quiet Coup In The Fed Gives QE3 A Green Light Quick Summary News and Current Events 0 December 4th, 2011 09:40 PM
FOMC Minutes – Fed Starts Talking Exit Strategy Process, But Not Yet Timing kbit News and Current Events 0 May 18th, 2011 06:18 PM
Congress to Tread Carefully in Run-Up to Election Quick Summary News and Current Events 0 September 12th, 2010 12:00 PM


All times are GMT -4. The time now is 10:58 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-11 in 0.15 seconds with 20 queries on phoenix via your IP 54.145.16.43