No Taper | Page 2 | TigerDroppings.com

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OnTheBrink
Alabama Fan
TN
Member since Mar 2012
3821 posts

re: No Taper


quote:

But hey, the market is at record highs








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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
82726 posts
 Online 

re: No Taper


quote:

55 X 85B = 4.675 T
You're leaving out maturities and asset sales over that time period.






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Cmlsu5618
McNeese State Fan
Destin, FL
Member since Sep 2010
2534 posts

re: No Taper


I thought QE3 was originally initiated around the early part of this year???





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Lsut81
USA Fan
Member since Jun 2005
64931 posts

re: No Taper


quote:

I thought QE3 was originally initiated around the early part of this year???


What I can find, QE3 started last Sept, QE2 Started in late 2010.... Dunno, I'm assuming theres a QE1?






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Janky
LSU Fan
Team Primo
Member since Jun 2011
8310 posts

re: No Taper


quote:

What I can find, QE3 started last Sept, QE2 Started in late 2010.... Dunno, I'm assuming theres a QE1?


But the $85B in bond buying has only been going on since last Sept. So your 55 months can't be correct. That is what I was refering to. And yes, there was a QE1 but IO don't remember what it was. Lots of vodka has been drunk since then.



This post was edited on 9/18 at 1:56 pm


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Lsut81
USA Fan
Member since Jun 2005
64931 posts

re: No Taper


Here it is...

quote:

Quantitative Easing 1 (QE1, December 2008 to March 2010)[edit source | editbeta]

"On November 25, 2008, the Federal Reserve announced that it would purchase up to $600 billion in agency mortgage-backed securities (MBS) and agency debt. On December 1, Chairman Bernanke provided further details in a speech. On December 16, the program was formally launched by the FOMC. On March 18, 2009, the FOMC announced that the program would be expanded by an additional $750 billion in purchases of agency MBS and agency debt and $300 billion in purchases of Treasury securities.

Quantitative Easing 2 (QE2, November 2010 to June 2011 )[edit source | editbeta]

On November 3, 2010, the Fed announced that it would purchase $600 billion of longer dated treasuries, at a rate of $75 billion per month. That program, popularly known as "QE2", concluded in June 2011.

Operation Twist (2011)[edit source | editbeta]

The Federal Open Market Committee concluded its September 21, 2011 Meeting at about 2:15 p.m. EDT by announcing the implementation of Operation Twist. This is a plan to purchase $400 billion of bonds with maturities of 6 to 30 years and to sell bonds with maturities less than 3 years, thereby extending the average maturity of the Fed's own portfolio.[6] This is an attempt to do what Quantitative Easing (QE) tries to do, without printing more money and without expanding the Fed's balance sheet, therefore hopefully avoiding the inflationary pressure associated with QE.[4] This announcement brought a bout of risk aversion in the equity markets and strengthened the US Dollar, whereas QE I had weakened the USD and supported the equity markets. Further, on June 20, 2012 the Federal Open Market Committee announced an extension to the Twist programme by adding additionally $267 billion thereby extending it throughout 2012.

Quantitative easing 3 (QE3)[edit source | editbeta]

On September 13, 2012, the Federal Reserve announced a third round of quantitative easing (QE3).[7] This new round of quantitative easing provided for an open-ended commitment to purchase $40 billion agency mortgage-backed securities per month until the labor market improves "substantially". Some economists believe that Scott Sumner's blog[8] on nominal income targeting played a role in popularizing the "wonky, once-eccentric policy" of "unlimited QE".[9]
The Federal Open Market Committee voted to expand its quantitative easing program further on December 12, 2012. This round continued to authorize up to $40 billion worth of agency mortgage-backed securities per month and added $45 billion worth of longer-term Treasury securities.[10] The outright Treasury purchases as part of the augmented program continued at a pace comparable to that under "Operation Twist"; however, the Federal Reserve could no longer sell short-dated Treasury securities to buy longer-dated ones since they had insufficient holdings of short-dated Treasuries.






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BennyAndTheInkJets
Arkansas Fan
NYC / Orange County
Member since Nov 2010
3990 posts

re: No Taper


No set buying for QE1 other than an initial announcement of $600B in mortgages during Novermber 2008, but you can reverse engineer it. Pre-recession the Fed held between $700-$800B of Treasuries on its balance sheet. By June 2010 it held $2.1T of Treasuries, MBS, and bank debt.

QE2
Nov 2nd, 2010 to June 30th, 2011
The Fed bought $600B in Treasuries

OpTwist (2)
September 21st, 2011
The Fed bought longer-term Treasuries and sold short-term Treasuries but no new dollar amounts.

QE3
September 13th, 2012
Fed buys $40B a month in MBS

QE4
December 12th, 2012
Fed buys $45B a month in Treasuries

So Basically (2100-750)+600+40(11)+45(8)= $2.75T

Not including roll-off purchases of MBS from QE1 and sterlized purchases from OpTwist2






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Blakely Bimbo
Alabama Fan
Member since Dec 2010
1108 posts

re: No Taper


Marketwatch - history of qe and market timeline.

LINK






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NC_Tigah
LSU Fan
Member since Sep 2003
52738 posts
 Online 

re: No Taper


quote:

I love it when the CNBC talking head 'experts' have egg smeared all over their face.
Don't be talkin' bad about my folks!









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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
82726 posts
 Online 

re: No Taper








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southernelite
McNeese State Fan
New Orleans
Member since Sep 2009
41224 posts
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re: No Taper


I prefer Bloomberg to CNBC, with the exception of Maria Bartiromo.







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NC_Tigah
LSU Fan
Member since Sep 2003
52738 posts
 Online 

re: No Taper


quote:

I prefer Bloomberg to CNBC, with the exception of Maria Bartiromo.
meh.
CNBC's ticker strip is burned into the bottom of MrsNC's TV screen . . . literally.
Runs it 6a-7p M-F in the background.
Decent network and information IMO.






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Blakely Bimbo
Alabama Fan
Member since Dec 2010
1108 posts

re: No Taper


Russell just hit historic high.





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
82726 posts
 Online 

re: No Taper


I'm having a damn good month in the stock market today.

Thanks, Ben!






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NC_Tigah
LSU Fan
Member since Sep 2003
52738 posts
 Online 

re: No Taper


quote:

I'm having a damn good month in the stock market today.

Thanks, Ben!
+1






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