Fed will start tapering QE in September

Why hasn't anybody mentioned the debt ceiling?
You know the suspension is in effect only through May 18, don't you?

My mini-macro questions are How long will the Fed allow USD to rally? How high will the Fed allow IR to climb? I ask because come September, there will be no tapering. There is no plan to exit. Stock markets rising are no mystery.


Trade On!
 
The FED voluntarily exiting QE is like having reverse gravity on earth, to me.
If it happens I'll be the first to buy the ticket for the show.
 
80 billion a month sounds like a lot right now

all they have to do is hold to maturity

and by then 80 billion won't be a very big deal
 
holding to maturity before buying new assets means stopping QE without exiting.
stop=don't inject new liquidity anymore
exit=get the injected liquidity back
I don't think they can stop QE now, they never will in my opinion,without crashing the economy.
It's exactly like drug
 
Quote from tiddlywinks:

Why hasn't anybody mentioned the debt ceiling?
You know the suspension is in effect only through May 18, don't you?
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The last I heard we are okay till Sept on the debt ceiling.
 
Quote from mastacoli71:

this is always happens at a top. everyone thinks it will just keep going, no pullbacks. maybe get a blowoff top where main street says i can't stand it anymore, i have to get in. that is when the correction happens.
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Thats exactly what happened to my friend who went long in 2007 with $100,000, he had never touched the market since the dot com bubble which was about 7 years prior, well the day he got in was just around the historical high, after that he rode it wall the way down losing over 50% of his money, and he played it safe by going long with mutual funds...I remember that day clearly now that I think of it, he was one who got caught up in the frenzy....the same thing is happening now. Everyone knows markets dont go forever, this one wont either, there is always a top, there is always a bottom, there is always a bull market and there is always a bear market. This time its not different, there will be a substantial correction, when it happens is anyones guess, but the next correction is going to be quite a show. This is a liquidity rally where all asset classes are being inflated just like they were in the past rallies we have had, the only way to grow an economy these days is through the creation of asset bubbles and large amounts of liquidity and that is what the market is experiencing at this very moment. This doesnt last forever, just like the dot com bubble and housing bubble this bubble will end as well. Going to be interesting though how they fix this next collapse.
 
Quote from kashirin:

http://www.marketwatch.com/story/fed-maps-exit-from-stimulus-2013-05-10-191031815


By September Dow will be nearing 18k
I bet they will reduce it by 5 bln at most

and they will wait and see for another year.

Then in a year Dow will be 25 K and then collapse 20K in one day and Fed will start emergency QE5 300 bln a month
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Once the market starts to cry BUBBLE ben bernake will push more QE through, and Im sure $300 billion wont be enough when the next collapse comes, he will be pushing well over that amount into the economy on a monthly basis....remember without any of these trillions being printed the SPX would still be sitting under 800 today! This entire market rally is based off of cheap worthless money.
 
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