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You folks have been singing the same tired tune for 5 years now - and I'm STILL waiting to see what you've predicted actually HAPPEN.
Based on you folks' past record, I'll be waiting a LONGGGGGG time.
"Fed Challenge: Pull Back Without Pulling the Rug Out
MARCH 15, 2014"
"In a speech in Mexico City on March 5, Mr. Fisher said, “There are increasing signs quantitative easing has overstayed its welcome: Market distortions and acting on bad incentives are becoming more pervasive.” He listed a series of stock valuation measures and said they were “at eye-popping levels not seen since the dot-com boom of the late 1990s.”
Mr. Fisher’s view appears to be a minority one at the Fed, but he makes some telling points. Certainly, as the stock market reaches ever more impressive milestones, it’s important, as he says, to monitor market indicators very carefully, “to ensure that the ghost of ‘irrational exuberance’ does not haunt us again.”
Long story short; manipulation has a way of coming back to bite you
THURSDAY, MAY 22, 2014 - 19:08
SF Fed's Williams: Communication Issues Looms Large As QE Ends
By Catherine Hollande
"One challenge for the Fed will be unwinding its balance sheet and raising interest rates without disrupting markets or harming the economy. On Wednesday, Williams told the Wall Street Journal he would prefer to wait until the Fed raises interest rates, which have been near zero since December 2008, to take any steps to shrink the Fed's balance sheet.
One way to do that is to stop investing the proceeds of maturing bonds into new securities, a step the Fed has publicly said it expected to take prior to raising interest rates.
Williams reiterated Thursday his position on doing reinvestment after interest rates liftoff from zero. "In my own view, this issue that the public and the markets struggle with understanding - how we move these two different instruments separately from each other - has been really hard, and in a way, try(ing) to say we're going to move on the reinvestment first and then raise interest rates, I think that could be more confusing," he told reporters."
Long story short; confusion is never a good thing for the market
"Fed Challenge: Pull Back Without Pulling the Rug Out
MARCH 15, 2014"
"In a speech in Mexico City on March 5, Mr. Fisher said, “There are increasing signs quantitative easing has overstayed its welcome: Market distortions and acting on bad incentives are becoming more pervasive.” He listed a series of stock valuation measures and said they were “at eye-popping levels not seen since the dot-com boom of the late 1990s.”
Mr. Fisher’s view appears to be a minority one at the Fed, but he makes some telling points. Certainly, as the stock market reaches ever more impressive milestones, it’s important, as he says, to monitor market indicators very carefully, “to ensure that the ghost of ‘irrational exuberance’ does not haunt us again.”
Long story short; manipulation has a way of coming back to bite you
Quantitative Easing IS ending and will be done by the end of the year - and the market will likely be fine, with any adverse impacts to the market being short-lived and fairly minor compared to the gains of the last five years.
The article you linked to really doesn't make much of a case for anything. Not sure even what your point was.
Ken
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Too late....
