Submitted by Tyler Durden on 06/20/2012 08:07 -0400
Ben Bernanke
Ben Bernanke
Borrowing Costs
Crude
Equity Markets
Gross Domestic Product
Japanification
Monetary Policy
Nikkei
recovery
Steve Liesman
Unemployment
Everything today is all about the Fed, which at 12:30 pm will release its standard statement. The publication of Fed officials' forecasts and Chairman Bernanke's press conference will follow at 14:00 and 14:15, respectively. Some, like Goldman are convinced the Fed will announce new easing measures, which could take the form of a new LSAP, more Twist as well as a lengthening of short-term rate guidance beyond 2014, potentially going as far as announcing a Flow-based form of QE, while others such as BofA are fairly certain nothing will happen. Then at 2:00 pm the Fed will release its new economic projections, in which it is roundly expected that the Fed will revise its GDP forecasts for 2012 and 2013 lower, and unemployment - higher. Finally at 2:15 pm Bernanke will address Steve Liesman and a few other members of the fawning captured media. By then the market will be either much higher or much lower, although with about 5% of the recent market move driven entirely by pricing in of more QE, the risk is to the downside. In other words the hopium phase is over. It is now make or break for the Fed.
Full recap of the last hopium rally in a rally from BofA:
This afternoon the Fed is due to announce any changes to their monetary policy stance. Below we provide a full preview. Overnight Asian equity markets rallied as markets participants increased their expectations that the Fed would either extend Operation Twist or announce
http://www.zerohedge.com/news/sentment-hoping-and-praying-bernanke-sees-his-shadow-and-six-more-months-new-qe?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
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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