also, the takeaway from BB's speech yesterday; not taking away the punch bowl...
"And that is exactly what will happen in December. The Fed will do QE#4, it will result in an additional $40+B per month of Fed buys. Along with QE#3, that means the Fed will be monetizing debt to the tune of $85B a month ($2mm a minute, 24/7). When QE#3 and #4 is ending, we will have QE#s 5 and 6."
http://www.zerohedge.com/contributed...1-22/evergreen
"Janet Yellen spoke a week ago, she talked Evergreen:
The three elements of forward guidance that were adopted by the FOMC in September 2012 would have been unthinkable in 1992 and greatly surprising in 2002, but they have, in my view, become a centerpiece of appropriate monetary policy.
Right. What was, not so long ago, "unthinkable", is now the "centerpiece". These people are actually proud of this "accomplishment".
Then Bernanke spoke, Evergreen was his message too:
we expect that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens.
In other words, there is no scenario for an end to printing.
And finally, today, the WSJ's ace reporter, Jon Hilsenrath, has an interview with Federal Reserve President John Williams. The message? More Evergreen talk.
Conceptually you could imagine some upper limit to this but I don't think we're getting anywhere near it.
On whether the Fed could stop monetizing any time soon?
Stopping or scaling back would be "counterproductive" for the economy."
