Exactly HOW do you imagine them doing this? Do you know how INSIGNIFICANT $85B in an entire month is compared to the entire world equity and bond markets?
If they could do it, WHY didn't they do it back in late '08- early '09? Didn't FEEL like it?
The Fed is the most over-hyped, under-performing group of egg-heads the world has ever seen. In fact, if the media asked, them, they'd say as much.
There are many ways to do it. One possible way is the Fed statement itself. If tomorrow we get a positive statement from the Fed the equation can change. In fact there are market expectations. Fed can make their policy aligned with the expectations without a large deviation (from expectations). The frequency and amount of deviation can be a function of the health of the economy.
Here's the problem. The Fed has NO CHOICE but to stop the market bleeding, because of its domino effect. This could all spill over into the economy which would really get Fed heads rolling.... worse than that, this could end up being a self-inflicted debt crisis.... the only question is, when is the pain so great they are forced back into the printing presses?
.... this is the infamous black hole that ultimately has swallowed up all banana republics in the past. Once you choose to travel this path, one that many of us were screaming about years ago and were called anti-American for it (figure that one out, huh?) there is NO GOING BACK. This WILL be the final bubble, so it has further up to go... beyond a parabolic, but a final ternary move up.
So, what is Ben doing and thinking right now?
Shorts are benefitting purely because of Fed statement. So shorts should be now thankful to Fed.
It is all Fed statement driven. If tomorrow we get a positive statement from the Fed the equation can change.
I don't agree.....without intervention we'd be lower than todays levels but we'd have a real market vs artificial one and stocks would have bottomed and be on the way back up.
The Fed easing did nothing beyond artifically influence how quickly the market rebounded...the economy is still way behind.