The FED's exist strategy

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Submitted by SD Transplant on February 9, 2010 - 1:31pm

I like this fellow's oppinion on the Fed exit strategy....short video CNBC

http://themessthatgreenspanmade.blogspot...

Source: Tim Iacono's blog

What do the piggs think about the near future where the FED is "supposely" stepping away from buying MBS?

‹ Jeremy Grantham's 4Q09 Letter I don't get it! ›
He made sense to me. I think
Submitted by jpinpb on February 9, 2010 - 7:18pm.

He made sense to me. I think he's right and if the Fed does step away from buying MBS, there will be some other life preserver tossed out to the real estate market and financial institutions. Not saying the next trick will work, but I see them trying whatever necessary. So far, a lot of money for mild and tenuous stablization.

Govt programs will be
Submitted by patientrenter on February 9, 2010 - 9:10pm.

Govt programs will be adjusted to the prices in the market. If prices start to go down again, govt programs will be stepped up.

I kept wondering if that was
Submitted by pencilneck on February 9, 2010 - 11:02pm.

I kept wondering if that was a typo in the header. After listening, I think not.

The Fed is clearly currently working on their existence strategy. Talk of an exit strategy, while fun to talk about, is premature.

That sounds about right. The
Submitted by CA renter on February 9, 2010 - 11:22pm.

That sounds about right. The GSEs will likely pick up where the Fed leaves off.

They will never allow the market set prices, as long as they create/have access to cheap money.

Judging from Bernanke's
Submitted by sdduuuude on February 10, 2010 - 11:01am.

Judging from Bernanke's speech today, they don't know what the hell to do.

because their "entrance
Submitted by cr on February 10, 2010 - 1:04pm.

because their "entrance strategy" worked so well...

patientrenter wrote:Govt
Submitted by briansd1 on February 10, 2010 - 1:26pm.

patientrenter wrote:
Govt programs will be adjusted to the prices in the market. If prices start to go down again, govt programs will be stepped up.

I agree with you.

I remember Greenspan saying that it's not the government's job to deflate a bubble.

It's apparently the government's job to inflate the bubble.

I don't believe that most
Submitted by briansd1 on February 10, 2010 - 1:50pm.

I don't believe that most American understand that the Fed grows its balance sheet by simply printing money.

http://www.latimes.com/business/la-fi-fe...

Saying they'll stop stimulus
Submitted by sdduuuude on February 10, 2010 - 4:03pm.

Saying they'll stop stimulus when the economy improves is like saying "I'll stop pouring water into this bucket as soon as it's empty."

sdduuuude wrote:Saying
Submitted by SD Transplant on February 10, 2010 - 5:21pm.

sdduuuude wrote:
Saying they'll stop stimulus when the economy improves is like saying "I'll stop pouring water into this bucket as soon as it's empty."

lol

The Fed's exit strategy was
Submitted by barnaby33 on February 11, 2010 - 11:19pm.

The Fed's exit strategy was borrowed from Mr Pine Box over at the SDCIA. A short summary of Mr Pine Box, I wonder how he's doing these days.
Josh

I figured the exit strategy
Submitted by Arraya on February 12, 2010 - 7:32am.

I figured the exit strategy would be more like the end of Thelma and Louise except it's Timmy and Benny going over the cliff holding hands.