The financial Twitterverse talking-head wackosphere is making a big deal this weekend over another Jerry Mahoney Hilsenrath piece in the Wall Street Journal. I can see why everyone is so excited. I got behind the WSJ paywall and read the article. Now, out of respect for the sanctity of copyright I won’t repost any big pieces of it. I’ll just give you the gist in these snippets. I mean, this is groundbreaking shit people, so sit down, put on some nose clips, and make yourself comfortable.
Fed Maps Exit From Stimulus
Officials say they plan to reduce the amount of bonds they buy
careful and potentially halting steps
varying their purchases
timing on …start …still being debated
intense interest in financial markets
strategy being debated
Fed plenty of flexibility
might not be the clear and steady
Officials are focusing on clarifying
want to avoid creating expectations
dial it back…Fed hawks
abrupt or surprising end… send stocks and bonds in the other direction
delayed end could allow markets to overheat
Fed’s strategy… source of some uncertainty
Fed said “prepared to increase or reduce the pace of its purchases”
acknowledgment that more aid… might be needed
many officials believe the recovery is on track
Fed has “a dial that can move either way.”
dial can also pause
strategy.. meant to…ensure flexibility in an uncertain economy
Some officials can envision taking a first step this summer
But they might wait longer
55% expect the Fed to start shrinking its bond purchases in the third or fourth quarter
45% expect the Fed to wait until next year
Clearer signals… could emerge next week
Mr. Bernanke will have a chance to explain …at news conferences in June and September
Some… proponents have signaled more optimism
So there you have it. That is truly ground breaking, incisive stuff. We have a strategy, a road map.
And now I understand what the great Yogi meant when he said, “When you come to a fork in the road, take it.”
In part 2 of this report, I send an email to Jon Jerry Mahoney Hilsenrath about a bald faced, uh… mistake… yeah that’s it… that Jerry repeated without checking the facts. Stay tuned.
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