Hi Kartik, Fed just said it will not change interest rates and announces Operation Twist

Hi Kartik, Desperate efforts to bring the yield curve lower by Fed

Hi Abdullah, "They tried 'Operation Twist' in the 1960s. It didn't work then and it won't work now," said David Kelly, chief market strategist for J.P. Morgan Funds. "People are gradually understanding that when you have interest rates close to zero, there's not a lot that the Federal Reserve can do ... The best chance for economic growth doesn't come from anything that Washington is doing." --
each analyst has something to tell !
It is just that US had been too used to a good life .

Hi DJ, Not really sure about immediate response of Indian markets, but see Kartik's post at 10:31 pm where he quoted my comments made on September 9, 2011. Looks like, money will flow in to India in mid to long term :)

Hi DJ, Thanks. Yes, some sort of positive response in Indian markets can be expected. Lets us also look for Asian cues tomorrow, and if positive, then Wow :)

Hi Gitanjali, Somehow, just saw your comments. Yes, operation twist didnot work earlier. My guess is, it may also not work this time. The Fed has merely twisted its portfolio by agreeing to sell shorter term bonds and buying longer term bonds. Now, this will bring down the longer term yields. But the risk Fed faces is, what if the longer term securities default? Maximum money is going to be deployed for purchasing 30 year T-Notes. So, in other words, the Fed has given the Govt. of USA 30 long years to pull the country out of the bad phase. (Considering, Fed holds the bonds till maturity, i.e., 30 years and will ask for maturity benefits after 30 years). The external debt of USA is over 100% of its GDP. In simple words, all that the Fed is telling to the Govt is : Look, you have 30 years to pay me my money, reduce the debt, increase GDP. Hence the ball is now in Capitol Hill's court. Policymakers in Govt will have to device ways to make the country grow.
Is this move going to suceed? The answer is "No" if we go by history. What will happen in India? I believe, some of this extra money will find its way to India in the mid to long term.
Just let me know what do you think about this post :)

Hi Abdullah, Good evening. yes. seems may open lower tomorrow.

Hi prasath bj, yes, icici can be bought on dips. looks better.

Hi Gitanjali, nifty has good support near 5100 levels. if breaks it, one can go short

Hi Sohan, :) not yet. still looking for some

Hi Abdullah, :) no issues. please feel free to do so. Good night