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Ashton Side Hero Username: Ashton Post Number: 5959 Registered: 05-2008 Posted From: 66.90.104.94 Rating: N/A |
speech done brother..he assured the investors that FED is ready to prop up the market anytime... markets ni manipulate cheyyalante America tharuvathe evaraina.. | ||
Ashton Side Hero Username: Ashton Post Number: 5958 Registered: 05-2008 Posted From: 66.90.104.94 Rating: N/A |
Yeah It's already done... http://www.nytimes.com/2010/08/28/business/economy/28fed.htm l?hp Mr. Bernanke said, while cautioning that “the economy remains vulnerable to unexpected developments.” What unexpected developments is he talking about? http://www.nytimes.com/2010/08/28/business/economy/28fed.htm l?_r=1&hp To help sustain the economy, Mr. Bernanke gave his strongest indication yet that the Fed was ready to resume its large purchases of longer-term debt if the economy worsened, a move that would add to the Fed’s already substantial holdings. “We have come a long way, but there is still some way to travel,” Mr. Bernanke said. “I believe that additional purchases of longer-term securities, should the F.O.M.C. choose to take them, would be effective in further easing financial conditions,” Mr. Bernanke told a Fed policy symposium here. He was referring to the Federal Open Market Committee, the panel that sets interest rates, which Mr. Bernanke leads; some members have expressed unease over the prospect of the Fed pursuing any further monetary accommodation. “Central bankers alone cannot solve the world’s economic problems,” he said. While Mr. Bernanke emphasized that deflation was “not a significant risk for the United States at this time,” he said “the F.O.M.C. will strongly resist deviations from price stability in the downward direction.” It was his most robust statement to date that the Fed would do its part to avoid a Japanese-style deflation from taking hold. And he said the “preconditions for a pickup of growth in 2011 appear to remain in place,” as banks increase lending, worries over the European sovereign debt crisis abate and consumers increase their savings. “Stronger household finances, rising incomes, and some easing of credit conditions will provide the basis for more-rapid growth in household spending next year,” Mr. Bernanke said. Indeed, the new report finding that the gross domestic product grew 1.6 percent in the second quarter nearly seemed to draw a collective sigh of relief from Mr. Bernanke and others gathered here — including the head of the European Central Bank, top officials from the International Monetary Fund and the World Bank, and most of the Fed’s top leaders. The figure, which was revised down from 2.4 percent, came in higher than estimates by government and market economists. Mr. Bernanke acknowledged that inflation had recently fallen “slightly below” the level that policy makers believe is consistent with a healthy economy. But he added, “At this juncture, the risk of either an undesirable rise in inflation or of significant further disinflation seems low.” In his 19-page speech, Mr. Bernanke outlined his views of the economy and explained the Fed’s recent action to prevent monetary policy from tightening by reinvesting the proceeds from mortgage bonds in longer-term Treasury securities. Strikingly, Mr. Bernanke acknowledged that the traditional trade-off between inflation and employment had become all but obsolete, at least for now. “Consistent with our mandate, the Federal Reserve is committed to promoting growth in employment and reducing resource slack more generally,” Mr. Bernanke said. “Because a significant further weakening in the economic outlook would likely be associated with further disinflation, in the current environment there is little or no potential conflict between the goals of supporting growth and employment and of maintaining price stability.” Mr. Bernanke outlined in detail four approaches the Fed might use to further ward off the threat of deflation. First, he said, the Fed’s purchases of longer-term securities had helped bring down long-term interest rates and lower the cost of borrowing, contributing to the economic stabilization and recovery that began in the spring of 2009. However, such purchases seemed to be most effective in time of financial stress, he said. It was an oblique acknowledgment that the Fed might have to purchase trillions of dollars’ worth of additional assets if it decides that additional quantitative easing — the strategy of buying financial assets to put downward pressure on long-term interest rates — is needed. Second, Mr. Bernanke opened the door to heightening inflation expectations beyond its current stances that “exceptionally low” short-term rates would be warranted for “an extended period.” In Canada, the central bank committed to keeping a low policy rate until a specific time; in Japan, the central bank promised to keep low rates until consumer prices stabilized or rose. Mr. Bernanke said that in the United States, it might be “difficult to convey the committee’s policy intentions with sufficient precision and conditionality.” Third, the Fed could lower the rate it pays on excess reserves — the $1 trillion that banks have been keeping at the Fed. But Mr. Bernanke said that cutting the rate even to zero would be unlikely to lower the federal funds rate — the benchmark short-term rate — by more than 0.10 to 0.15 percentage points. And doing so risked making short-term money markets “much less liquid.” Fourth, Mr. Bernanke discussed a controversial proposal, advanced by some economists, for the Fed to set a medium-term inflation target “above levels consistent with price stability.” But he dismissed that strategy as “inappropriate for the United States in current circumstances.” Inflation would likely be higher and more volatile under such a policy, he said, while inflation expectations would become less stable. Mr. Bernanke acknowledged that the recovery had “slowed somewhat in recent months” because consumer spending had grown at a slower pace than expected and because of continuing weakness in housing and nonresidential construction. “Despite this recent slowing, however, it is reasonable to expect some pickup in growth in 2011 and in subsequent years,” Mr. Bernanke said, while cautioning that “the economy remains vulnerable to unexpected developments.” Unexpected to whom? | ||
Pplsuck Side Hero Username: Pplsuck Post Number: 2202 Registered: 07-2008 Posted From: 136.1.1.104 Rating: N/A |
Its done already...at around 10:00 am EST..... Donga naa Bankers lo modativaadu Bernanke....... | ||
Dinu Junior Artist Username: Dinu Post Number: 265 Registered: 09-2009 Posted From: 122.175.94.31 Rating: N/A |
entha time vundi brother.. speech ivvataniki? in a hour or two? www.nbkfans.com | ||
Pplsuck Side Hero Username: Pplsuck Post Number: 2201 Registered: 07-2008 Posted From: 136.1.1.104 Rating: N/A |
Ashton, Bernanke speech aipoyindi anukuntaa.....daani valley markets turned around..... Idle, PPT antey "Plunge Protection Team" ani.....not officially acknowledged....but then everyone in the markets believe that Govt uses federal reserve to prop the markets when they are falling and create a buying frenzy......to support the markets at critical times and change the sentiment.... | ||
Ashton Side Hero Username: Ashton Post Number: 5957 Registered: 05-2008 Posted From: 66.90.104.94 Rating: N/A |
PPT -- Plunge Protection Team Bernanke -- Federal Reserve Chairman... ivaala bernanke speech vundi US economy performance during second quarter gurinchi...that brings the entire show down...u gotta wait for some time.. | ||
Idle_yzag Megastar Username: Idle_yzag Post Number: 26676 Registered: 02-2008 Posted From: 198.80.144.187 Rating: N/A |
annai yevadu ee PPT, Bernanaked all I care abt am I recovering my 401k MF losses  RahulGandhi/JP/Chiru | ||
Ashton Side Hero Username: Ashton Post Number: 5955 Registered: 05-2008 Posted From: 66.90.104.94 Rating: N/A |
Markets Manipulated....PPT stepped in early this morning... you gotta wait untill Bernanke's speech though. | ||
Idle_yzag Megastar Username: Idle_yzag Post Number: 26673 Registered: 02-2008 Posted From: 198.80.144.187 Rating: N/A |
111 points up  RahulGandhi/JP/Chiru | ||
Dinu Junior Artist Username: Dinu Post Number: 264 Registered: 09-2009 Posted From: 122.175.94.31 Rating: N/A |
 equity stock markets ilagne vuntayi.. gap up's tho.. invest in commodities.. it always rocks.. silver and gold are rocking www.nbkfans.com | ||
Ashton Side Hero Username: Ashton Post Number: 5950 Registered: 05-2008 Posted From: 66.90.104.94 Rating: N/A |
I don't know how long the Feds gonna hype this so called fake "recovery" by pumping the market with trillions of dollars...The inflating debt has gone upto 13 trillion $ & the housing foreclosures still continue across all the states... How can the president Obama promise Americans about recovery when you have several millions of people unemployed without coming up any proper investment plans? By buying more stocks, I feel like I'm drowning myself into the toilet...I'm just keeping an eye on Gold,Silver everyday... | ||
Dosakaaya Side Hero Username: Dosakaaya Post Number: 2476 Registered: 02-2010 Posted From: 69.120.64.45 Rating: N/A |
rather than moving sideways, i don't mind if we hvae a day of total capitulation... and we have seen so many occassion when the market tanked and recovered few months later... overall the signs are bad, can be a buying opportunity? | ||
Ashton Side Hero Username: Ashton Post Number: 5948 Registered: 05-2008 Posted From: 66.90.104.94 Rating: N/A |
http://www.cnbc.com/id/38872170 Bernanke Speech to Set Market Course Friday and Beyond Posted By: Patti Domm | CNBC Executive Editor CNBC.com | 26 Aug 2010 | 09:30 PM ET Fed Chairman Ben Bernanke speaks on the economy and policy, at a time when both are shaky in the eyes of the markets. Bernanke's Friday morning address in Jackson Hole, Wyo. has become one of the most discussed, debated and dissected of his career, even before he's given it. "He's going to need a miracle to satisfy all these multiple expectations that are all over the place," said Art Cashin, director of floor operations at UBS. It is hoped that Bernanke will clarify two things - how bad the Fed believes the economy is getting and what it might do about it. Friday's markets will also get a look at the revisions made to second quarter GDP at 8:30 a.m. That could put the growth rate for the quarter ended June 30 at just 1.3 percent, compared to the previously reported 2.4 percent. That would also be the starting point for the current quarter, which by all signs is showing a continuing drop off in activity. "Friday is going to bring a meaningful downward revision to GDP...Does the average person in the market know that? I don't know," said Dan Greenhaus, chief economic strategist at Miller Tabak. Consumer sentiment data is released at 9:55 a.m. and could also be a market mover. Bernanke speaks at 10 a.m. before the Kansas City Fed's annual symposium, which is attended by central bankers, economists and academics, plus an entourage of journalists. He will make his comments behind closed doors, away from television cameras, but on the other side of the country, Wall Street will be hanging on every word. "The problem the Fed has is their forecast hasn't changed very much, but the probability of a downside event has gone up, and they don't think there's much probability of an upside surprise. The problem they are having is how do they communicate that to people," said Barry Knapp, head of equities portfolio strategy at Barclay's Capital. "It's not a normal distribution. The downside risks are growing, but we can't get more aggressive policy until their forecast moves, and they're not there yet." "I think people expecting him to say something that's going to be beneficial to the market are fooling themselves," Knapp said. Communication is what turned the heat up on Bernanke in the first place. When the Fed released the statement after its Aug. 10 meeting, it surprised and confused many in the markets by both downgrading its view of the economy and then immediately moving to a new easing program. Just three weeks before, Bernanke told a different story in Congressional testimony. "I can't remember a time when there was so much anticipation for a speech..How did he get here? I don't think it's his fault. It's the economy," said J.P. Morgan economist Michael Feroli. But Feroli said the events leading up the last Fed meeting didn't help, nor did the Fed's communication after the meeting. "The statement itself didn't execute well in conveying a clear message," he said. The so-called quantitative easing announced in August involves the Fed replacing its maturing mortgage securities with Treasury securities, which in essence keeps the Fed balance sheet stable. In theory, it also could prevents a passive tightening. The Fed also left the door open to further easing, which some in the market believe could ultimately be multiple trillions in Treasury purchases. The expected outcome would be that the Fed's purchases would help force down rates, helping to spur lending. Traders have been gaming how and when the Fed might act. Many in the market point to the communications that have come from the newspaper, rather than Fed officials. There was a Wall Street Journal article just before the August meeting that suggested the Fed would adopt a program to replace maturing mortgages on its balance sheet by purchasing more securities. Many in the markets did not believe it would be an imminent action because of Bernanke's July comments. Then this week, ahead of Bernanke's speech, another highly-detailed Wall Street Journal story described a split of opinion within the Fed, and noted that at least seven of 17 members disagreed or were concerned about quantitative easing. "He does have a committee to respect, but he can push the agenda forward. If he lays out the framework and the conditions under which they would act, and kind of lays out the forecast, I think it's possible to infer the likelihood of quantitative easing," said Feroli. |