Complete Fed Statement breakdown:

• FED SEES `SIGNIFICANT DOWNSIDE RISKS' TO ECONOMIC OUTLOOK
• FED TO BUY TREASURIES WITH 6-YEAR TO 30-YEAR REMAINING MATURITY
• FED LEAVES FEDERAL FUNDS RATE TARGET AT ZERO TO 0.25 PERCENT
• FED SAYS PROGRAM PUTS `DOWNWARD PRESSURE' ON LONG-TERM RATES
• FED TO SELL TREASURIES WITH 3-YEAR OR LESS REMAINING MATURITY
• PLOSSER, FISHER, KOCHERLAKOTA DISSENT FROM FOMC DECISION
• FED REPEATS `EXCEPTIONALLY LOW' RATES THROUGH AT LEAST MID-2013
• FED TO BUY $400B OF LONG-TERM DEBT, SELL $400B SHORT-TERM DEBT
• FED EXTENDS AVERAGE MATURITIES OF SECURITIES HOLDINGS
• FED TO REINVEST MATURING HOUSING ASSETS IN HOUSING DEBT
• FED SAYS INFLATION `APPEARS TO HAVE MODERATED'
• FED SEES `CONTINUING WEAKNESS' IN LABOR MARKET
• FED PURCHASES TO BE DISTRIBUTED ACROSS FIVE SECTORS
• FED SAYS 32% OF DEBT PURCHASES MATURE FROM 6- TO 8-YEARS
• FED SAYS 32% OF DEBT PURCHASES MATURE FROM 8- TO 10-YEARS
• FED SAYS 4% OF DEBT PURCHASES MATURE FROM 10- TO 20-YEARS

In other words: $400 billion in POMOs over the next 8 months or so, with the monthly at about $50 billion. Also MBS repurchases for a token amount. No LSAP as most expected, and no IOER rate cut. Goldman once again about half of what it expected.

(above source: zerohedge.com)

What is your take on Ben's solution?

Mike

Big Mike 

What is your take on Ben's solution?

Is this another example of BTFD? Will the fed be successful and six months, 1 year, 2 years from now the market will loom higher than today? Do you trust the fed to keep inflating the market?

Mike

Big Mike 

What is your take on Ben's solution?

What happens when we enter a double dip recession and rates are already at zero, and our checkbook is empty?

What happens when Ben is fired by the next administration?

Mike