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What Happened The Last Time A Major Central Bank “Tapered” QE?
Posted By admin On December 19, 2013 @ 6:54 am In Money Watch | Comments Disabled
Zero Hedge 
December 19, 2013
After having followed a zero interest rate policy strategy and facing a further deteriorating economy in an environment of falling prices (deflation), the Bank of Japan (BoJ) announced the introduction of QE on 19 March 2001 and kept it in place until 9 March 2006. The BoJ chose for a very orderly and gradual unwinding of its government securities portfolio, by continuing its regular purchases of these securities (i.e a taper and not sale). The market rejoiced at the normalization for a week or 2… before dropping 24% in the following 2 months. Of course, that was a “policy mistake”; the Fed knows this time is different.
Think 24% is ok and Fed will just rescue stocks again?… things “esclated”…
to end -75%.
Awkwardly that lines up with the 1920/30s analog we have previosuly noted …
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URLs in this post:
 Zero Hedge: http://www.zerohedge.com/news/2013-12-18/what-happened-last-time-major-central-bank-tapered-qe
 Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/12/20131218_taper1.jpg
 Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/12/20131218_taper2.jpg
 lines up with the 1920/30s analog we have previosuly noted: http://www.zerohedge.com/news/2013-12-07/ghost-1929-re-appears-pay-attention-signals
 Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/12/20131206_1929.jpg
 Central Bank Hid Housing Market Crash Forecast: http://www.prisonplanet.com/central-bank-hid-housing-market-crash-forecast.html
 Russian Central Bank Buys 100 Tons of Gold: http://www.prisonplanet.com/russian-central-bank-buys-100-tons-of-gold.html
 World’s Most Prestigious Financial Agency – Called the “Central Banks’ Central Bank” – Warns of Bursting Bubble: http://www.prisonplanet.com/world%e2%80%99s-most-prestigious-financial-agency-%e2%80%93-called-the-%e2%80%9ccentral-banks%e2%80%99-central-bank%e2%80%9d-%e2%80%93-warns-of-bursting-bubble.html
 Central Bank Intervention Is Now Self-Defeating: http://www.prisonplanet.com/central-bank-intervention-is-now-self-defeating.html
 The “Central Banks’ Central Bank” says Bailouts Putting Nations at Risk, as Confirmed By Higher Credit Default Swap Spreads: http://www.prisonplanet.com/the-central-banks-central-bank-says-bailouts-putting-nations-at-risk-as-confirmed-by-higher-credit-default-swap-spreads.html
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