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Joshua905
Member

US Bond Purchase Program News

U.S. Federal Reserve to start tapering (slowing) down the QE3 $85 billion U.S. bond purchase program in January of 2014 by 10 billion to 75 billion and potentially end by late next year. Fed officials see GDP growth strengthening to 2.8-3.2% in 2014 then 3.0-3.4% in 2015. This has sent the U.S. stock markets (DJIA) back above the record 16,000. This is no surprise and is looked at as good news as the U.S. slows down their spending in 2014 and suggesting that the U.S. economy is strong enough to grow without U.S. government assistant. Long-term this is a signal that interest rates are probably going to move higher sooner rather than later depending on the labor markets, GDP growth and inflation numbers in the coming 6-12 months.  

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4 Replies
BA Deere
Honored Advisor

Re: US Bond Purchase Program News

The thing is, the banks are just sitting on this free money and I believe they get paid 1/4% interest just sitting on it, it never makes it to mainstreet.  Some realtor was saying something about mortgage rates being 5 1/4% by summer.  I don`t know maybe TSHTF ain`t too far off?

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hardnox604008
Advisor

Re: US Bond Purchase Program News

Ah, for the days when the crowd all wanted to chase commodities. It will probably come again in 25-30 years and I hope I'm around, not to mention sentient enough to care.

 

But now they want to chase stocks and with the dollar higher and gold and silver lower after hours I'm thinking net negative to the commodities.

 

Bad day in beans, one that I'm inclined to pay attention to.

 

 

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giolucas
Veteran Advisor

Re: US Bond Purchase Program News

Inflation coming?

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pritchh
Senior Contributor

Re: US Bond Purchase Program News

hardknox for once I concur, minus the comment on chasing stks around.

 

corp equity works daily producing this or that, fools and CNBC play games chasing chattering,

all to no worthy end. entertainment.

 

this era has brought large benefit ti the orp world, the yave borrowed are record low rates

fixed in the coupon, and have all the csh thye need for some time.  a few % of the economy is

poor but most is in good shape, the doomsters forget the latter.

 

Banks are sitting? banks have higher lending standards than 10 yrs ago but are GLAD to LEND!!u

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