Thank you Mr.Bernanke

arrowloopboy

......for now:D:D:D.

Its just a pity this tapering lark wouldn't just go away (quietly,and in an orderly fashion )

martyoo

QE4EVA :P

Will we be saying thank you Yellen?

gordongekko

im a bit shocked at the decision. Any reason given?

arrowloopboy

martyoo wrote: »

QE4EVA :P

Will we be saying thank you Yellen?

Or Damn it,Janet:D

uncle_mick

was about to buy prior to fed announcement this evening when my computer crashed , cost me around 1200 euro as the stock I had my eye on shot up on bernankes announcement of continuous bond buying

I think almost everyone expected some form of tapering , we could well blow into a bubble off the back of this , the market was already extremely bullish , this evening adds further fuel

hullaballoo

uncle_mick wrote: »

was about to buy prior to fed announcement this evening when my computer crashed , cost me around 1200 euro as the stock I had my eye on shot up on bernankes announcement of continuous bond buying

I think almost everyone expected some form of tapering , we could well blow into a bubble off the back of this , the market was already extremely bullish , this evening adds further fuel

Offshore server farm!

That's very unfortunate, hard luck!

tommylimerick

will be interesting to see the opening today will the rally continue ?

uncle_mick

hullaballoo wrote: »

Offshore server farm!

That's very unfortunate, hard luck!

problem was there already , I wanted to wait as close to fed announcement as possible as markets were pushing down , because I expected some form of tapering , I never thought the stock would pop , funny thing is I sold it a week ago , had to buy back in yesterday evening at eight above where I sold out :mad:

uncle_mick

tommylimerick wrote: »

will be interesting to see the opening today will the rally continue ?

I see it continuing until the next debt ceiling mini crisis in mid October , a deal is always done , republicans know they cant afford to risk a serious downturn due to their intransigence

arrowloopboy

Must think up of a straddle trade before the next announcement .

nagirrac

The reason the Fed decided to delay tapering is because long term interest rates rose too sharply. This was in reaction to the June announcement and had the result that mortgage rates climbed 1% in the US and threaten the housing market which in essence is the thing driving the "recovery". It was a mistake for the Fed to make their June announcement, something they now realize. They should start tapering when the data supports it and not give any preannouncements which just distorts markets.

In my opinion we are set up for a short term drop in US equities, maybe as much as 10%. The reason for this is the debt ceiling debate which will be all that is in the news during October and will increase volatility. The house passed legislation today to defund Obamacare, which of course will never pass the senate and would be vetoed by Obama, but means the Republicans will take it to the wire again as they did last December. Have a look at how markets reacted last December before and after the threatened government shutdown. The Republicans have to be seen to fight Obamacare to the bitter end, it is almost their entire economic platform.