Operation Twist

[Afishegg]

According to several sources, the fed will replace short term bonds with long term bonds in what many are dubbing "operation twist". What I am wondering is unlike quantative easing measures that helped inflate the stock market, how will this new untested measure affect the stock/bond market? Any thoughts out there?

 

[RealMoneyIssues]

I thought they were already doing this???

 

[KevinD]

Had to google Operation Twist...


Fed Likely to Begin 'Operation Twist' Easing, Economists Say

Read more: http://www.sfgate.com/cgi-bin/artic...omberg_articlesLRTT5S07SXKX.DTL#ixzz1YVeGH9Cm

http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/09/20/bloomberg_articlesLRTT5S07SXKX.DTL

 

[RealMoneyIssues]

http://seekingalpha.com/article/292158-the-fed-s-twisted-plan

http://en.wikipedia.org/wiki/History_of_Federal_Open_Market_Committee_actions

 

[jkenjohnson]

Most people think the Twist is already priced into the market.

 

[Birchtree]

Let's do the Peppermint Twist.

 

[SteelSaving]

What about the Wilbury Twist?

 

[Viva_La_Migra]

I just hope we don't get the bayonet twist...in our backs!

 

[Bquat]

Maybe a lemon twist.

 

[Bullitt]

With a VIX at 17 and yields on the 30 year making new lows every month, Operation Twist II is completely nuts. What will the Fed do when the VIX hits 30?

Hoping that we're seeing a double top in WTIC here. That would bring more relief and stimulus than any other trick in the book.