...by stating that there are downside risks to the economy. Rather than giving QE3, the Fed handed America "Operation Twist" which has limited powers to help turn the economy around.
Stocks across the board are making gains from their session lows in reaction to headlines that suggest that the European Union is looking to recapitalize 16 banks in the region.
Euro is now gaining strength.
Look at gold today. It is down 3.7 % today. Amazing. One would expect it to be jumping after a major selloff.
nesta: I realize that Greece is headed for a default. Europe has not been decisive enough when dealing with Greece. Euro nations don't even have a unified fiscal policy. Can you believe that Greeks can get pensions beginning at age 55?!!! What a lazy welfare state.
the ONLY way europe can get out of their debt issues is to print like never before.
not going ot happen so it will get cleaned up only after the financial destruction of the EZ (and hurting US bad in the process)
I have a completely different opinion....gold will be cheaper than onions in the time range you provided. There is simply no reason for it to go up. Sentiments. is that all we got?
Most traders were not expecting that much pessimism from the Fed. I was a little caught off guard by the the level of negativity contained in their statements. But most traders were expecting Operation Twist to be announced yesterday.
Disappointing manufacturing data out of China, weak U.S. employment and housing numbers, and renewed fears about Greece defaulting are crushing the global markets today.
However, I believe that today's selloff is a bit overdone. The latest news out of Greece suggests that the Greek government will fully adopt tough austerity measures to avoid a default. But there are still many lingering questions left unanswered moving forward.
Latest Bloomerg article suggests the Fed Signals It May Ease Policy Further Amid ‘Significant’ Risks to Outlook
Read about it here:
schweitz, you are more of a calculated risk reader than a zerohedger.
Greek austerity cant help them. that debt cannot be repaid. they will eventually default. Theyd be better of doing it now and big rather than inflict pain on their citizenry only to default later.
and Bernanke didnt give the markets what they were expecting. He lost credibility with them because they thought there was an implied promise to handily beat expectations. Bernanke was in a no win, but the power of his words have diminished considerably. I expect tomorrow and next week to be like August again.