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aussiebear

World Stock Markets Trading Discussion - Unresisting urbanity

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All Ords 5-day chart

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http://bigcharts.mar...com/default.asp

 

A positive day for All Ords with the index finishing +0.3%.  In the sectors, Miners +1.3%, Materials +1.1% down to Utilities -0.6%.

Some notable rises in Asia: China +2.5%, Hong Kong +1.4%, Japan +0.6%, India not joining in, currently flat.

UK/Europe just open: FTSE +0.6%, DAX and CAC flat.

 

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  http://bigcharts.mar...com/default.asp

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I am back to working on WSE and Liquidity Trader full time as of this weekend.  

Here's my first SEO optimized, marketing oriented free post.  Writing for that purpose is an interesting learning experience for me.  Stilted, but hopefully got lots of good info across too.  

 

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I have a crazy thought that I will just throw out in the interest  of avoiding possible surprises.  

Suppose, and sure it's wacky, just suppose the Fed jumped back into the short end, T Bills. That's where the problem is after all.  Now how they could justify it who knows since they have spent a decade defending the make believe Fed Funds market.  On the other hand since all serious people believe absolutely in the fairy tale FF market I don't think a new fairy tale would be a hard sell.

I'm just saying someday, maybe next emergency they may get back into the short end.  One advantage would be they would not have to call it QE.

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8 minutes ago, DrStool said:

Why wouldn't it be QE?  

For the same reason it's open market operations since forever were not called QE.  QE implies, although most people don't know it, buying coupons, long dated paper. Well no matter, it's just semantics. Then again with the Fed every single word is chiseled to have a specific meaning.

Admittedly I don't know if their repo activity amounts to squat. 

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I think that you are correct that the Fed will need to buy T-bills. But whether it's QE or not depends not on the maturity spectrum, but the quantity. 

QE means aggressively expanding the balance sheet to flood the banking system with money. The norm used to be 3-5% growth per year. That was similar to the growth rate of GDP. The theory was that the balance sheet should expand enough to accomodate growth.  That was not considered easing, quantitative or otherwise.  

Then they shifted gears to 100% growth in a year in 2009.  In essence, any massive increase in the size of a central bank balance sheet that is far greater than the normal growth they expect to need to accomodate economic growth is quantitative easing.  

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Key resistance right here on the hourly. Clear 2835 and its off to the races. 

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