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Saft Says: Fed is talking but not walking taper

Tuesday, June 04, 2013 - 02:19

June 4 - Reuters columnist James Saft says QE is here to stay and good for the wealthy.

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-- murders columnist James -- You only -- tapering these days seems to need a global economy and until all expectations that the Federal Reserve will soon start to scale back on purchases that. Officials have been talking in the market has been weren't about whether the Fed will start -- how. Used to belong purchases this is sent stock prices sharply up and well it may happen but it did it's going to be good victory at -- over eight. On Monday we had news that. Orders and manufacturing were sharply lower in May worst in four -- results consistent with a contraction and a and since the bed next attempt to manage the US economy the global context need to look at China and Mary had produced similar results. If you look at the Chicago -- national activity index. Forward looking. Pretty good record your prediction what telling you he's not a recession but it cooling economy. With lower wrote in the second and third quarters. And if you really gonna. Housing -- -- maybe you better take a look at copper and lumber prices which -- telling a really different story. So what does this mean for -- One thing. You key -- doing. -- near the Fed's hand he's going to be forced and there are going to be in a position where they're gonna continue to have to provide support. Given provides some support for bond markets and it's gonna provide good support for equity markets. So why the Fed actually talking to paper if they're not gonna do. In -- advantage because they -- purely in the position -- rank in shorts. And for some of them. I think they're talking about it hasn't really do you think the risks and calls -- to lie compared to the benefits. Well one thing we can all agree on -- -- he's good for the well. From those were in financial services to those suggestions stocks and for that reason maybe the economic statistic of the week is portion of sales which were. A record 38% last month in North America. You look at the data you look at the position of the that is then and you conclude. It's going to be a pretty good summer for portion.

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Saft Says: Fed is talking but not walking taper

Tuesday, June 04, 2013 - 02:19