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LOL,,,,,,,,YUP,,,,,,,,,, One Trader Asks "Is This The Fed's 'Whatever It Takes' Moment?"

By: capt_nemo in POPE 5 | Recommend this post (0)
Tue, 17 Dec 19 10:12 PM | 19 view(s)
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Authored by Richard Breslow via Bloomberg,

It’s tempting to wonder whether there should be a reassessment as to the extent of all of the optimistic feelings that have just turbo-boosted markets. After all, this latest leg up in risk assets since the end of last week has been more than impressive, with sticker shock an understandable emotion. The latest impetus is largely predicated on all the good news from the tariff and Brexit fronts. And while a reevaluation may make sense from a policy-analysis point of view, it’s doubtful whether financial markets are prepared to do it quite yet. That’s apparently a debate for next month.

Was all of the news unambiguously good? Not to the extent declared by the participants. Can you poke holes in some of the details? Absolutely. Will it be nothing but smooth sailing going forward? Unlikely. But it appears to be good enough for now and the central banks will do the rest. You will continue to see liquidity being pumped into the financial system in heavy doses and investors are relying on that fact to sustain them.

This past September’s repo funding squeeze that was so jolting and scary may be the best thing that has happened to risky assets going into year-end. The turn may not happen totally without some volatility, but the rank fear that embraced the markets has largely dissipated. The Fed is planning what looks like some extreme operations. They are certainly proving a willingness to splash out. Soon we’ll find out just how clever they have been.

It’s as if word came down not to let those pressures happen again...Whatever it takes.

more,,,,,,,,,,,,

http://www.zerohedge.com/markets/one-trader-asks-feds-whatever-it-takes-moment?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29




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Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.




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