Powell Announces the Fed Is Not Doing QE Ep. 507
b'Don\\u2019t miss my upcoming appearances:
\\nThe Dallas Money Show October 13-14
\\nand the\\xa0New Orleans Investment Conference, Nov. 1-4
\\nAnother Weak Day in the Equity Market
\\nWe had another weak day in the equity market, so the 4th quarter is starting off on a particularly sour note. The Dow, down 314 points today. Technically speaking, closing right near the lows: down 1.2%. NASDAQ had a much worse day, down 132 points - that\'s 1.67%.\\xa0 Russell 2000, similarly beat up: 1.7%, down 25 points.\\xa0 The Transports really took it on the chin. They down 1.85%. 185 points down on the Transports. The money losing stocks, the recent IPO\'s continue to get beat up. The real debacle du jour was Smile Direct. That one was down another 15% today: down $2 - it closed at $11.34 right off the new low of $11.20.\\xa0 Remember, this stock came public less than 2 weeks ago and it was $23 a share.\\xa0 The highest it actually traded was $21.10. Now we\'re down better than 50% from the IPO.
\\nFed: QE but not QE
\\nBut I really don\'t want to spend a lot of time talking about the markets today.\\xa0 In fact, I only want to talk about one thing, and that\'s the Fed and the return to Quantitative Easing . I wasn\'t even going to do a podcast today; Yom Kippur starts in a couple of hours so I was just going to skip it. In fact, I wasn\'t even going to do one tomorrow - I was probably going to wait until Thursday. But then I was watching this press conference with Jerome Powell where basically the Fed came out and said they were doing QE, except they said they weren\'t doing QE.
\\n"Increasing Securities Holdings to Maintain an Appropriate Level of Reserves"
\\nThere\'s an old saying: "Never believe something until it\'s been officially denied. Jerome Powell went out of his way today in his statement and in the Q and A that followed to emphatically say that the Fed is not doing QE. This is an exact quote from Powell: "This is not QE.\\xa0 In no sense is this QE."\\xa0 Except, in every sense it\'s QE, because it\'s exactly QE.\\xa0 There\'s also an old saying," If it walks like a duck, it looks like a duck and it quacks like a duck, it\'s a duck."
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\\nWell, this looks like QE, it smells like QE, it quacks like QE, it walks like it\\u2026 it is QE! What is the difference between QE and what the Fed is now doing? I wish someone would really ask that question.\\xa0 In his prepared remarks, this is what Powell said:
\\n\\u201cAs we indicated in our March statement on balance sheet normalization, at some point, we will begin increasing our securities holdings to maintain an appropriate level of reserves,\\u201d he said. \\u201cThat time is now upon us.\\u201d
\\nAlready? In March they said that "at some point"?\\xa0 Did anybody back then think "some point" meant "NOW"?\\n\\nOur Sponsors:\\n* Check out Rosetta Stone and use my code TODAY for a great deal: https://www.rosettastone.com/ \\n\\nPrivacy & Opt-Out: https://redcircle.com/privacy'