Ahhh…The long feared handoff; from a marketplace fed and supported by the FED acting as specialist, to a market that must “find its own funds”. Scary!
The timing of this announcement was certainly a surprise. But Bernanke and other FED heads told us this was coming. The latest comments came yesterday from Plosser–a non-voting member. The end date of FED MBS buying has been widely reported to be March 1st. That free money, trading shitty MBS’s for cash to put into the stock market has ended. (Don’t worry though, banks can still borrow at 1/2% and lend back to the Treasury for now almost 4% for a 10 year note).
Futures are down, about 50 Dow points at of 5:30pm and I bet we open lower anywhere between 50-100 points, and then finish the day up that much.
Gentlemans bet? Wanna bet a sandwich? A nice hot slice of pizza perhaps?
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OK, I’ll bet you a slice of our lousy CA. pizza vs your good East Coast slice!
Some great stuff this last week Scott.
Thanks
I don’t doubt you much and i don’t doubt you now.
I will bet a bag of Hot Fries
More spot on commentary. Really enjoying this blog.