Mish: Panic!Submitted by Apple on Thu, 09/13/2012 - 17:37
Mish: In my previous post Desperation Bazooka Tactics; Gold Soars Following Huge Headfake, I mentioned "This seems like desperation bazooka tactics. Specifically, the Fed is in a panic state over jobs."
I am not the only one to come to that conclusion. Saxo Bank economist Steen Jakobsen sent out a post moments ago, FED Did Panic...
They are now doing 'open ended' bond buying - no finite time or amount...hence this will go down as QE Extreme.
I remain of the view this is final phase...
I'm long stocks, gold, short us dollars next 24-48 hours but ..on the anniversary for LEHMAN... tonight could be the day where FED did too much.
Low yield and monetary policy stopped having an impact two years ago, tonight could be the night where after the rally low rates no longer impact stock and risky asset - the only cheap asset right now is: money ...every time this has been the case in history it has ended in bubble and tears.