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22 Luminaries (And Dick Bove) Sign Open Letter To Fed Demanding End Of QE2

Tyler Durden's picture




 

As if the rest of the world telling Ben Bernanke he has finally flipped, was not enough, here comes the opposition from within, after 23 public figures, among which economists, financiers, hedge fund managers and Dick Bove (not sure what he is) have sent an open letter to the Bernank demanding QE2 be immediately pulled. With the imminent market collapse that would follow such an action we are not surprised to see Jim Chanos among the list of signatories, although that long-biased Paul Singer of Elliott Associates would endorse such a contrary to his interests letter, is interesting to say the least.

From the WSJ:

We believe the Federal Reserve’s large-scale asset purchase plan (so-called “quantitative easing”) should be reconsidered and discontinued.  We do not believe such a plan is necessary or advisable under current circumstances.  The planned asset purchases risk currency debasement and inflation, and we do not think they will achieve the Fed’s objective of promoting employment.

We subscribe to your statement in the Washington Post on November 4 that “the Federal Reserve cannot solve all the economy’s problems on its own.”  In this case, we think improvements in tax, spending and regulatory policies must take precedence in a national growth program, not further monetary stimulus.

We disagree with the view that inflation needs to be pushed higher, and worry that another round of asset purchases, with interest rates still near zero over a year into the recovery, will distort financial markets and greatly complicate future Fed efforts to normalize monetary policy.

The Fed’s purchase program has also met broad opposition from other central banks and we share their concerns that quantitative easing by the Fed is neither warranted nor helpful in addressing either U.S. or global economic problems.

Cliff Asness
AQR Capital

Michael J. Boskin
Stanford University
Former Chairman, President’s Council of Economic Advisors (George H.W. Bush Administration)

Richard X. Bove
Rochdale Securities

Charles W. Calomiris
Columbia University Graduate School of Business

Jim Chanos
Kynikos Associates

John F. Cogan
Stanford University
Former Associate Director, U.S. Office of Management and Budget (Reagan Administration)

Niall Ferguson
Harvard University
Author, The Ascent of Money: A Financial History of the World

Nicole Gelinas
Manhattan Institute & e21
Author, After the Fall: Saving Capitalism from Wall Street—and Washington

James Grant
Grant’s Interest Rate Observer

Kevin A. Hassett
American Enterprise Institute
Former Senior Economist, Board of Governors of the Federal Reserve

Roger Hertog
The Hertog Foundation

Gregory Hess
Claremont McKenna College

Douglas Holtz-Eakin
Former Director, Congressional Budget Office

Seth Klarman
Baupost Group

William Kristol
Editor, The Weekly Standard

David Malpass
GroPac
Former Deputy Assistant Treasury Secretary (Reagan Administration)

Ronald I. McKinnon
Stanford University

Dan Senor
Council on Foreign Relations
Co-Author, Start-Up Nation: The Story of Israel’s Economic Miracle

Amity Shales
Council on Foreign Relations
Author, The Forgotten Man: A New History of the Great Depression

Paul E. Singer
Elliott Associates

John B. Taylor
Stanford University
Former Undersecretary of Treasury for International Affairs (George W. Bush Administration)

Peter J. Wallison
American Enterprise Institute
Former Treasury and White House Counsel (Reagan Administration)

Geoffrey Wood
Cass Business School at City University London

Follows the Fed's boilerplate response:

“As the Chairman has said, the Federal Reserve has
Congressionally-mandated objectives to help promote both increased
employment and price stability. In light of persistently weak job
creation and declining inflation, the Federal Open Market Committee’s
recent actions reflect those mandates.  The Federal Reserve will
regularly review its program in light of incoming information and is
prepared to make adjustments as necessary.  The Federal Reserve is
committed to both parts of its dual mandate and will take all measures
to keep inflation low and stable as well as promote growth
in employment.  In particular, the Fed has made all necessary
preparations and is confident that it has the tools to unwind these
policies at the appropriate time. The Chairman has also noted that the
Federal Reserve does not believe it can solve the economy’s problems on
its own.
 That will take time and the combined efforts of many parties,
including the central bank, Congress, the administration, regulators,
and the private sector.”

Apparently the Fed still does not realize that it is not its job to "solve the economy's problems" in any capacity, but merely to focus on curbing inflation: an action which the Fed is openly pursuing the inverse of as per its latest interpretation of its mandate. And yes, ultimately the fault lies with Congress and the broad definition of the Fed's power, which is the first thing that should be fixed going forward (or backward as the case may be).

 

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Mon, 11/15/2010 - 09:13 | 727261 EscapeKey
EscapeKey's picture

10yr T-note 2.86 0.07

Ain't gonna happen.

Mon, 11/15/2010 - 09:13 | 727262 DollarDive
DollarDive's picture


Cost of livin' gets so high,
Rich and poor they start to cry:
Now the weak must get strong;
They say, "Oh, what a tribulation!"
Them belly full, but we hungry;
A hungry mob is a angry mob.
A rain a-fall, but the dirt it tough;
A pot a-yook, but d' yood* no 'nough.

We're gonna chuck to Jah music - chuckin';
We're chuckin' to Jah music - we're chuckin'.

----------------

Bob Marley

Mon, 11/15/2010 - 12:06 | 727556 One Drop
One Drop's picture

There once was a fiat named Dollar
Her "soundness" shall raise a great holler
She's fallen so far, donuts now trade at par
I think I'll just put her, not call her

(After some inspired yank on the euro here last week....)

Mon, 11/15/2010 - 09:14 | 727263 Superdrol
Superdrol's picture

So this means Goldman Sachs needs some help in their short positions ?

Mon, 11/15/2010 - 09:20 | 727268 richard fitzwell
richard fitzwell's picture

I actually thought Bove might have been a Fed created Cyborg of some sort.  This puts a dent in that theory.

Mon, 11/15/2010 - 09:57 | 727341 idea_hamster
idea_hamster's picture

Not at all -- we all know that eventually the machines get smart and can no longer be controlled by their arrogant, short-sighted inventors. I actually think it fits well. 

Somewhere at 33 Maiden, someone keeps pressing the remote kill switch on his Bove control panel, but he's slowly realizing that Bove got smart and disabled it.

Also, I can see Bove gouging out his own eye with an X-Acto knife in order to continue his mission -- that's about what he wants Bernenke and the US to do.

Mon, 11/15/2010 - 10:04 | 727345 Red Neck Repugnicant
Red Neck Repugnicant's picture

No.  He's just another hypocritical fucking Republican like the rest of them. 

Dick Bove's quote about Ben Bernanke in January 2010:

This party [Democrat] is now seeking to remove the Chairman of the Federal Reserve the only man in the country left in Washington who has any credibility in the financial markets.

Fucking god damn hypocrite! 

Anyone have any letters written and signed by these hypocritical fuckheads when $700 billion was mailed to Wall Street in Octoberr 2008?  Any letters questioning why Goldman was paid par for their $13 billion AIG exposure?  

Anyone?  Any letters at all from any of these guys?

This is a political letter.  Not an ethical or monetary one.

Fucking hypocrites!  All of them.  And, of course, what side of the fucking isle do they sit?

If they truly were looking out for America's best interests, they would have written a hundred letters before today.  

Mon, 11/15/2010 - 10:34 | 727414 Fraud-Esq
Fraud-Esq's picture

bingo!

Mon, 11/15/2010 - 10:35 | 727418 MsCreant
MsCreant's picture

Pssst! Redneck. Yeah you. Boy did you fall out of character on that one. Hit a nerve eh?  I called and wrote letters, emailed and faxed too so I hold the same grudge. Some of those characters on there individually publicly disagreed with the bailouts, though, to be fair.

Mon, 11/15/2010 - 11:07 | 727476 Calvin Jones an...
Calvin Jones and the 13th Apostle's picture

The better question is why did the Wall Streeters put their name to this letter.  Do they really want to be lumped in with Amity Shales and Bill "William the Bloody" Kristol?  Kristol has never been right about anything.  Ever.

Mon, 11/15/2010 - 11:29 | 727503 Red Neck Repugnicant
Red Neck Repugnicant's picture

Two reasons:

1.  They know Bernanke won't reverse course immediately after he announces QE2.  QE2 is a done deal, Wall Street doesn't need QE3, and they know it will be nearly impossible politically to get away with another round of easing. So, truly, the criticism of QE2 is just rhetoric. If they truly didn't want QE2, they would have written the letter before it was announced.  Writing this letter today is pure politics.  Nothing else.    

2.  The theft already happened.  Their coffers are full.  Wall Street is saved.  The only problem left in America is that the country is fucked - that's all.  And that doesn't matter to Wall Street.  They got their money and now it's time to wear the patriot hat - you know, the one the makes them look like they care about the overall well being of America.  

The best sort of robbery is from your neighbor's back yard.  First you steal from him.  Then you walk over and help him look for the robber, while bitching about the ineffectiveness of the Neighborhood Watch program.  Very clever. Very deceptive. And very effective.   

Mon, 11/15/2010 - 11:31 | 727516 Tortfeasor
Tortfeasor's picture

Pray tell who was in charge of Congress in 2008?

Open your eyes and quit being a sucker.  Both D and R are responsible for this fraudster.  If the morons on your side had any guts, they would've kicked him out in '08 instead of reappointing him and giving him MORE power through the Frodd Act.

Get over your hate.  Join us in the bleachers as the crash'em-up derby comes to its close.

Mon, 11/15/2010 - 12:33 | 727677 Red Neck Repugnicant
Red Neck Repugnicant's picture

I agree - both parties are to blame.  I'm not a democrat.  I simply focus on the republicans because the hypocrisy is deeper and richer. 

By the way, Congress was told if they didn't vote for TARP, the Earth would wobble of its axis - just like they were told in 2003 that we would have mushroom clouds in our backyard if we didn't take down Saddam.

There is an obvious pattern at work: 

The Republicans are masters at apocalyse-type rhetoric to get their what they want, whether it's TARP or war.  And the Democrats are too gutless to question the validity of these end-of-the-world scenarios.  They vote in agreement, and then ask questions later.  It's fucking pathetic.    

Mon, 11/15/2010 - 17:10 | 728422 Accidental Farmer
Accidental Farmer's picture

Putting "Council on Foreign Relations" under your name in a nasty gram to the fed is such a joke. It's the equivalent of "Fellow Treasonous Douche Bag" They almost had me until I saw that.

 

Mon, 11/15/2010 - 20:31 | 728995 SheepDog-One
SheepDog-One's picture

So? What, someone has to agree with everything someone does at all times? Do you like your wife for years? What if you suddenly found I was banging her for hours each nite...would ya still? Redneck repulicunt, youre everything thats wrong with america, you and your fuktarded brain.

Mon, 11/15/2010 - 09:22 | 727269 flaunt
flaunt's picture

Let them continue... We'll never get rid of the central bank if they aren't allowed to completely blow up the currency.

 

Mon, 11/15/2010 - 09:51 | 727328 SWRichmond
SWRichmond's picture

Whether we "let them" continue or not, I'm convinced they will continue.  I truly wish they wouldn't, and I am working to try to stop them, but I have placed my bets that they will. 

 

BTW:

22 Luminaries (And Dick Bove) Sign Open Letter To Fed Demanding End Of QE2

I love this title.

Mon, 11/15/2010 - 09:24 | 727271 flaunt
flaunt's picture

double post

Mon, 11/15/2010 - 09:23 | 727272 unum mountaineer
unum mountaineer's picture

let the itchy bum begin!

Mon, 11/15/2010 - 09:24 | 727273 Arius
Arius's picture

 

next step a letter to the Bernank in support of QE2 from Krugman at al...let the games begin...

another less sophisticated version of republican vs democrat game...

Mon, 11/15/2010 - 20:34 | 729007 SheepDog-One
SheepDog-One's picture

Well we already know Krugman and the rest of those assclowns in the media support the criminal lunatic Bernanke, that letter of support would be no news.

Mon, 11/15/2010 - 09:24 | 727274 Cursive
Cursive's picture

May I add my name to this?  Why not just another End the Fed petition, but just starting with "well respected" academicians.

Mon, 11/15/2010 - 09:25 | 727275 HelluvaEngineer
HelluvaEngineer's picture

Can someone explain to me why futures are being pumped while PMs are getting hammered, besides obvious coordinated manipulation?  Or, perhaps I should say - has everyone decided that the market now goes up with the dollar?

Mon, 11/15/2010 - 09:30 | 727282 Oh regional Indian
Oh regional Indian's picture

HeEng,

Why do you need more answers than that? coordinated manipulation is the only game in town now.

ORI

http://aadivaahan.wordpress.com

Mon, 11/15/2010 - 09:31 | 727283 Cdad
Cdad's picture

Sweet flash crash on the SPY just now.  Check it.

$116.71.

The answer to your question is you buying PM's is subversive to the FED.  And you are a serf.  So you are supposed to shut up and buy the SPY.

Got it?

Mon, 11/15/2010 - 09:35 | 727288 HelluvaEngineer
HelluvaEngineer's picture

I can't see it on TOS.  SPY looks absolutely chaotic after hours on their charts.  I do see the silly looking pin low on gold at 1356.5 though!

Mon, 11/15/2010 - 09:40 | 727298 Cdad
Cdad's picture

You can't see it on SPY?  Serious?

Look for the 599,000 volume spike on the one minute chart.  You cannot miss it...unless you want to.

It continues to be amazing to me that the criminal syndicate known as Wall Street thinks we will buy back into a market that is so obviously manipulated and broken by HFTs.  And still more amazing is that the criminal syndicate known as Wall Street is currently the Bag Holder.

 

Mon, 11/15/2010 - 09:45 | 727307 HelluvaEngineer
HelluvaEngineer's picture

Sorry, all I see is a flash up to 121.62 around that time.  Isn't it funny that with all the computers in the market, we can't seem to get an accurate quote on anything?

Mon, 11/15/2010 - 09:49 | 727321 Cdad
Cdad's picture

The LOD on SPY is $116.71.  I have no idea what you are looking at.  It happend at 8:30 EST and just as data was released.  It was a typical HFT operation...spiking down within one second, filling huge orders, and marking back up...thus exhausting the short term sell signal...and giving them potential upside...provided buying follows the operation.

It is theft.  It is everywhere in this market.  Our market is broken.  Period.

 

Mon, 11/15/2010 - 09:55 | 727335 SWRichmond
SWRichmond's picture

Like most people, I am not a trader and do not have access to a trading platform.  I have instead chosen the simple route: withdraw my capital from the system until the system becomes more-than-reasonably trustworthy again.  I am not alone.

Mon, 11/15/2010 - 10:09 | 727359 Manbarepig
Manbarepig's picture

Cdad - I see it as well.  Running a few trading systems and I can confirm on each one.

Mon, 11/15/2010 - 19:41 | 728843 Cdad
Cdad's picture

Every single open market day, this theft goes on.  That transaction happens by trading through some off shore venue...where there may be no bid.

Over and over, the computer crimes go unpunished by an incompetent SEC.

 

Mon, 11/15/2010 - 09:29 | 727280 Quinvarius
Quinvarius's picture

These guys are talking their books with no regard to the outcome.  If we don't get enough money into the banks to counter the toxic garbage on their books, this is all going to go very badly.  I don't like QE either.  But at least I can think logically beyond 2 steps.  Every one of those jokers should consider the banks they work for will not exist if we choose their way.  The time to complain was when the leverage was being added and during RE inspired bubble.  It is too late to complain about the medicine.  There are two ways out for the economy.  One is a quick bullet and the other is a long stay in the intensive care unit with a whole lot of IVs.

Mon, 11/15/2010 - 09:37 | 727292 Bendromeda Strain
Bendromeda Strain's picture

Bullshit - you want to raise up a generation you don't recognize? Let them experience the "thrill" of a hyperinflationary collapse. Oh sure, it's a lot sexier than the depression we are entering, but it also damages a society in more ways initially unseen. Eff the banks, RICO & resolve their asses if they rode dirty.

Mon, 11/15/2010 - 09:39 | 727295 skipjack
skipjack's picture

Total horseshit.  We need banks; we don't need THESE TBTF banks.

 

Until the unsustainable debt is defaulted and the fraudsters prosecuted and jailed, there can be no recovery.

 

It's just that simple.

Mon, 11/15/2010 - 09:45 | 727308 Cdad
Cdad's picture

Exactly.

Faith in these institutions will not be reestablished as banks are simply bricks and mortar held together by trust.

Perp walks!

Mon, 11/15/2010 - 09:57 | 727339 SWRichmond
SWRichmond's picture

We need banks; we don't need THESE TBTF banks.

It's amazing how many people conflate the need for banks with the need to maintain TBTF banks.  You are exactly right: we need banks, just not these banks.

Mon, 11/15/2010 - 12:03 | 727591 VisualCSharp
VisualCSharp's picture

Don't think of it in terms of the institution itself (the banks). Instead, people should be saying "we need bankers, just not THESE bankers." The men behind the institution are the evil and corrupt ones, not the institution itself.

Mon, 11/15/2010 - 10:03 | 727351 badnews...buyspus
badnews...buyspus's picture

Quin - so what is QE2? the bullet to the head? How can you complain about the RE bubble when we are getting about 10 new bubbles from QE2. These TBTF banks need to be put down - with no downside they have no risk control and will continue to rape and pillage. If you like big government and big corporation (same thing really) you must be happy. The Fed is a typical gen Y'er, they want it now and will brush the negative crap under the rug for some future sucker (their kids).

Mon, 11/15/2010 - 09:45 | 727281 Al Gorerhythm
Al Gorerhythm's picture

The Ben Bernank is targeting the value of savings with a mandated inflation policy?

Yes

Are you shitting me?

No.

Who gave The Fed The Mandate?

Congress.

Does The Congress think that savings should lose their purchasing power?

Yes. They voted for The Mandate.

Is it written in the constitution that The Fed should have The Mandate?

No.

Are you shitting me?

No. The Congress decreed that the Fed should exist and gave it The Mandate.

Did all members of The Congress  vote for The Fed to exist?

No. Only four members voted for The Fed to exist.

Are you shitting me?

No. The Fed was created by stealth, in the middle of the night.

But that is a topic for another video.

 

Mon, 11/15/2010 - 09:32 | 727285 10044
10044's picture

Yeah but the 5000 at CFR, trilat, and bilderberg are telling ben to QE, so they win, the 22 lose. Very simple. QE to infinity

Mon, 11/15/2010 - 09:47 | 727305 John McCloy
John McCloy's picture

Your correct. Ben knows exactly what his job is and that is to bouy the assets of the elites and widen the wealth gap. Only when their nests and contingency plans are in place will he begin the inevitable attempt at a controlled demolition. That should be about the time this becomes the bubble to end all.

Mon, 11/15/2010 - 09:35 | 727287 Red Neck Repugnicant
Red Neck Repugnicant's picture

These guys don't know what they're talking about. 

Mon, 11/15/2010 - 09:47 | 727315 Al Gorerhythm
Al Gorerhythm's picture

Deep.

Mon, 11/15/2010 - 09:39 | 727293 David99
David99's picture

Helicopter Ben is left with no choice but to continue with QE2,3,4,5 and so on. His prestidge is at stake and he knows that his all Ponzi Scheme will get exposed without QE. Either FED will be abolished or will get audited.

Mon, 11/15/2010 - 10:26 | 727394 Snidley Whipsnae
Snidley Whipsnae's picture

At this point Ben knows his 'prestige' is toast, just like Greenspan's 'prestige' is toast.

Ben will continue with QEs because he has no alternative. If he stops QE his banking buddies are toast and the US economy stops for a while. If his banking buddies, or politicians, get a whiff of Ben considering stopping QE, Ben will go down in a mysterious 'accident' and be replaced by a more malable replacement (although I can't think of anyone more malable at the moment).

Ben and Alan can only hope that revisionist historians can save their reputations at some future time. Low probability event, imo.

To say that the first few days of QE2 have been disappointing to the US/Fed/Treasury/banksters is an understatement.

 

Mon, 11/15/2010 - 09:38 | 727294 Insiderman
Insiderman's picture

Why is Amity Shlaes spelled "Shales?"

Mon, 11/15/2010 - 09:39 | 727296 bugs_
bugs_'s picture

CEASE AND DESIST

Mon, 11/15/2010 - 09:40 | 727297 GlassHammer
GlassHammer's picture

The FED can't solve the economy's problems on its own but it won't take outside advice.

That sounds like something my previous boss would do.

If the FED is like my last boss then the next step will be a meeting with the 22 luminaries. The goal of that meeting is to get the group to collectively agree the letter was wrong.

Mon, 11/15/2010 - 09:42 | 727299 Everybodys All ...
Everybodys All American's picture

It is time to protest the Fed actions. Since Bernake is intent on destroying the dollar.It is non-violent and yet it gets the point across.

 My protest would be to send the Fed a shredded dollar bill in the mail from all the citizens.

Mon, 11/15/2010 - 09:42 | 727300 cossack55
cossack55's picture

Crashjpmorgen.net

When I buy silver today, am I doing "G*d's work". Cool.

Mon, 11/15/2010 - 09:48 | 727317 Kina
Kina's picture

Bought 3 silver coins today on-line from the Perth Mint.

 

Crash JPM, bastards!

 

PS. JPM could you do my a favour and take down silver again today, I have some silver stocks I want cheap. Thanking you in advance.

Mon, 11/15/2010 - 10:07 | 727355 Arius
Arius's picture

 no problemo - will take it up with the Ben Bernank...

one question though - would you promise to NOT take delivery of the stock certificates???

Mon, 11/15/2010 - 09:42 | 727301 Careless Whisper
Careless Whisper's picture

printing money = creating jobs

everyone know that

Mon, 11/15/2010 - 09:48 | 727316 Ace Ventura
Ace Ventura's picture

Hmmm....several of the names on this 'petition' letter are members of CFR and other assorted establishment think tanks. I find it difficult to believe this is anything more than empty posturing. Particularly given one of CFR's objectives is the furthering of a globalist agenda. QE1 thru infinity is precisely what they need in order to destroy the dollar and help usher in some 'new' currency. One which will naturally be managed by the global bankster cartel the CFR works for.

Maybe I'm crazy, but I don't trust the motives of anyone associated with the CFR. Why would several of them suddenly be on 'our side'? Or is there another angle here I'm not seeing in my coffee-deficient morning haze?

Mon, 11/15/2010 - 12:43 | 727587 hangemhigh
hangemhigh's picture

Ace:

my sentiments exactly.  also notice that these cfr'ers let saint sarah front run their their 'call to arms'.  

this is entirely political but i'm not sure what the 3 card monte exit strategy is.

this may be a post crash get-out-jail-free-card that these shape-shifters can use to explain away their culpability.........................

Mon, 11/15/2010 - 09:49 | 727323 David99
David99's picture

Bears are controlling the POMO (Bulls) and Ben is worried what to do. I sent him Gillette Razor blades on his birthday so that he can go to the toilet and shave. His reply is "Thank you David, I am too busy 24x7x365 with my printing. I replied him, I will nominate you for Noble Printing Prize.

Mon, 11/15/2010 - 10:35 | 727417 trav7777
trav7777's picture

24x7x52

Mon, 11/15/2010 - 09:49 | 727324 Dadoomsayer
Dadoomsayer's picture

I've been wondering when these people were going to finally say something.  When this experiment blows up, who is going to at least be there to say I told you so.

 

These 22 people have at least put some thought into this.  If you don't criticize the current fed then you will have absolutely no standing with the world when we have to come back and try to fix the mess Bernanke has wrought.

Mon, 11/15/2010 - 10:34 | 727415 Snidley Whipsnae
Snidley Whipsnae's picture

Dadoomsayer, +

I think you're right about the CFR staff wanting to be on record with this letter.

They know Ben is not going to stop printing, they know it's going to end badly, so why not take a cheap shot and go on record as 'being against Ben's QE2'?

Mon, 11/15/2010 - 10:39 | 727423 SheepDog-One
SheepDog-One's picture

They know its about to blow, and yep they want to be on record saying 'I told you so'.

Mon, 11/15/2010 - 11:35 | 727522 MachoMan
MachoMan's picture

Also known as the "Bill Gross Method".

Mon, 11/15/2010 - 09:54 | 727334 David99
David99's picture

I am not sure whether Helicopter Ben or Mugabe is a better choice for getting Noble Printing Prize. Both seems to have same birth certificate.

Mon, 11/15/2010 - 10:04 | 727347 israhole
israhole's picture

Nice.  Hope you fellas push gold lower so I can buy it back.

 

Mon, 11/15/2010 - 10:11 | 727361 Fraud-Esq
Fraud-Esq's picture

The establishment wants their OLD FED back. 

They want the PUBLIC to PAY INTEREST again for debt. They oppose the GREENBACK in all it manifestations. Not all are opposed the Fed buying "all" assets all the time, just these assets for sure. Your debt a la Greenback.

The same men who opposed Jefferson-Jackson and Lincoln...   

 

Mon, 11/15/2010 - 10:20 | 727372 DollarDive
DollarDive's picture

One of the earlier posts prompted me to take a look at the BUCY 10q filing.  The balance sheet looks more like a company that was in trouble...not one deserving of a 30% premium.  They've been increasing shares O/S - also short term LIAB's have all gone way up, including accrued expenses, payables etc. - I'm wondering if CAT did this deal to make themselves whole on monies owed.....Time will tell: 

http://3.bp.blogspot.com/_boO_BV8n9ko/TOFAshH-ITI/AAAAAAAAITY/zW63kOBIE44/s1600/6md.JPG

 

 

Mon, 11/15/2010 - 10:22 | 727382 SheepDog-One
SheepDog-One's picture

Don't forget the biggest signer of 'End QE2', Chinas ICBM. Go ahead and let the pumping resume, next 'airplane contrail' will be headed toward the east coast.

Mon, 11/15/2010 - 11:39 | 727530 MachoMan
MachoMan's picture

Right, China fired an ICBM to scare us into...  defaulting on our obligations to them?  There is no alternative to the dollar other than that which we claim to have the most reserves in the world...  Not sure why China would threaten nuclear war when not only do we have more nukes, but China is completely dependent on our money printing regime.

It was a message to China...  We know you're happy to play along, but just in case you wanted to find an alternative to the dollar or are attempting to get oil pegged in something other than the dollar, this one's for you...  and the rest of the world.

Mon, 11/15/2010 - 10:22 | 727383 Jason T
Jason T's picture

Like telling the Devil to stop being evil.  Man is on a mission to transfer wealth to the banks from the American people.  

Mon, 11/15/2010 - 10:23 | 727385 Fraud-Esq
Fraud-Esq's picture

For years we're told to "stay out of monetary policy", "don't interfere!". Now, the plutocracy is doing what they advised not be done.... 

Add in the Wall Street Journal. Aren't anyone's instincts tingling?

They'd be running adds against the Greenback too. Each signatory believes the public should pay interest to private banks, under private bank notes, but the public should go fight the wars which create the fundamentals for their private notes.....

The Plutocracy only APPEARS to be on your side.  They're not. 

Mon, 11/15/2010 - 10:36 | 727420 trav7777
trav7777's picture

Maybe the elites thought they already had a great stockpile of claim tickets and were expecting the liquidiation about now

Mon, 11/15/2010 - 10:40 | 727426 SheepDog-One
SheepDog-One's picture

Funny how 'wealth' works when theres no one to sell to. 

Mon, 11/15/2010 - 11:42 | 727534 MachoMan
MachoMan's picture

Some assets (real assets) don't need to be sold...  they can derive us an incredibly pleasurable existence...  without the necessity of a counterparty.  These assets are being converted from the ether as we speak in strikingly large numbers...  the quick to convert get to have nice fiefdoms...  the slow get the whip/perpetual indentured servitude (aka slavery).

Mon, 11/15/2010 - 10:39 | 727422 Anarchist
Anarchist's picture

Kabuki theatrics. Google "starve the beast". QE2 is just a continuation of bankrupting the US so the politicians have cover for killing all social programs and flushing all pensions down the toilet. It also will return the elite back to owning 95% of the wealth in the country. Pete Peterson has been warning about this for a very long time and no one listened....

Mon, 11/15/2010 - 14:32 | 727979 Things that go bump
Things that go bump's picture

I think the elite are very seriously underestimating the blowback from such a move or, conversely, are overconfident in their ability to manage it.  

Mon, 11/15/2010 - 10:40 | 727425 Oh regional Indian
Oh regional Indian's picture

So CATO and a bunch of "in" guys start the clamour for change. 99% of people will see this and that replayed ad nauseum. They will believe it.

A look at headliners over the past 2 weeks especially here at ZH will confirm. Almost every guy  (Grantham/Paulson etc.) and their ilk are coming out and snapping at their master's heels.

This is all good theater. Fact is, right now, finance has taken a solid back-seat to geo-politics. Remember, these are not fools. They know where they get the maximum bang for their buck.

Ang (sp!) Sang released.... so timely. Obligatory Serf feel-good moment. Headlines taken over. Right at g-20 time. How cool that the Burmese Hoooonta played synchrnistic ball with the US of a.

Like that, one after the other, sleight of hand. Look there, switch, lookee what we have here...

Dick. Bove. Boom.

ORI

http://aadivaahan.wordpress.com

Mon, 11/15/2010 - 10:42 | 727428 SheepDog-One
SheepDog-One's picture

It wont matter soon whether people are fooled or not, MIRV's have a way of making games irrelevant.

Mon, 11/15/2010 - 23:32 | 729542 Oh regional Indian
Oh regional Indian's picture

MIRV? 

Thought I'd ask before I google...

ORI

http://aadivaahan.wordpress.com

Mon, 11/15/2010 - 10:45 | 727437 Robslob
Robslob's picture

And the ONLY thing that history will remember is these "titans" demanding the Fed stop QE not that they were part of the problem the whole time prior to the implementation of it?

History sucks...always written by the "victors" with no regard for the truth.

 

Hopefully these blogs will grow and continue to educate those who are willing to vomit their green pill in a select choice for the red...

Mon, 11/15/2010 - 11:07 | 727464 Fraud-Esq
Fraud-Esq's picture

F-that. History will remember the Greenspan idealogical titans opposed every form of bank regulation from 1970's thru today. The supported 12 trillion, all told, in direct bailouts, MBS purchases, and guarantees. SUPPORTED. Then, they supported giving the failures, the FRB (not the gov) virtually all the regulatory authority over the banks.

The only thing they opposed was the reciprocal reach-around, BUYING PUBLIC DEBT (QE2).

The public getting their debt interest free is a battle that goes back to Jefferson, Jackson and Lincoln. (even Kennedy toyed around the margins).

The titans do NOT want that. They are FOOLING some long-time ideological anti-Fed people that suddenly, the titans are with YOU. LMAO! Impossible, isn't it? Don't even take their first drink offered, don't intoxicate. They're firing bullets at the FRB for manifesting a version of the Greenback. They're screaming hyper-inflation, but no one mentioned inflation while the private banks were dumping credit out their windows (creating money and leverage) travelling 155MPH for a decade. Now - in a time of delevering and consolidation, the public getting an interest debt break will create runaway inflation? If that's true, perhaps the FRB should buy more public debt and let some banks fail at the same time to offset the inflationary pressures.

We would also pull the plug on FASB. Would the titans like that? 

Oh - would they? F this bullshit. There's one pie. They don't care if it's rigged or free-market pie. They want more of that pie. They see the public is getting some pie. They don't like that. 

 

Mon, 11/15/2010 - 11:52 | 727565 MachoMan
MachoMan's picture

Part of the allure of the awe inspiring internet is that virtually all of our history can be recorded...  and cheaply at that.  The ability to lie about present history will only persist so long as cached pages and the annals of hard drives can be erased or hidden.  My guess is that this does not end well for the principal actors.  The playing field has changed, but the playbook has not...

Mon, 11/15/2010 - 10:55 | 727452 Robslob
Mon, 11/15/2010 - 11:04 | 727470 Lets Hang Parliament
Lets Hang Parliament's picture

Todays FT Alphaville sums up the ongoing "Nigerian" scam nicely!
The FT’s Alphaville carries a nice parody of the sort of communication with which anyone with an email account will be familiar:
“Dear Sir,
Good day and compliments. I am Dr (Mr) Benjamin Bernanke, Chairman of Federal Reserve of United States of America. This mail will surely come to you as a great surprise, since we never had any previous correspondence. My aim of contacting you is to crave your indulgence to assist us in securing some funds abroad to prosecute a transaction of great magnitude.
Due to poor banking system in America, many subprime borrowers are not paying back mortgages and banks have lost ONE TRILLION TWO HUNDRED BILLION UNITED STATES DOLLARS ($1,200bn) so far. This calamity has caused much suffering in my country. To help remedy this situation, our president, Mr Barack Obama, has authorised to be spent a sum of EIGHT HUNDRED NINETY SEVEN BILLION DOLLARS ($897bn) on stimulus plus many other good deeds like cash for clunkers. Unfortunately, since that time, we are being molested and constantly harassed by bond vigilantes who do not care that their reckless and vicious behaviour could ruin our hopes and plans.
To this effect, last year I authorised the printing of ONE TRILLION TWO HUNDRED AND FIFTY BILLION ($1,250bn) of United States currency to purchase government securities. To my great shock, this was not enough so I am now buying another SIX HUNDRED BILLION DOLLARS ($600bn).
If you forward a modest sum to purchase Treasury notes then I can buy many more of them with my unlimited printing press and their price will rise. I am absolutely positive that this arrangementwill be of mutual benefit to both of us. I can offer you generous interest rate of EIGHT TENTHS OF A PERCENT after taxes.
I want you to immediately inform me of your willingness in assisting and co-operating with us, so that I can send you full details of this transaction and let us make arrangement for a meeting and discuss at length on how to transfer this funds.
Yours Faithfully,
Dr (Mr) Benjamin Bernanke
N/B: Please contact Mr Timothy Geithner on this e-mail address for further briefing and modalities.”

Mon, 11/15/2010 - 11:06 | 727474 TumblingDice
TumblingDice's picture

Hahahaha. I wonder how people like this draw the line. Really, 0% interest rates are fine...expanding the balance sheet by a redicilous amount is ok, open fraud is ok, all of the shit ZH covers is ok, but another 600 billion...NUSH NUSH NUSH thats too much. I reckon this is either stupidity or connivery.

Mon, 11/15/2010 - 11:15 | 727485 Fraud-Esq
Fraud-Esq's picture

It's not the amount. It's that they're buying PUBLIC debt, not private. That's their dealbreaker. These fat pigs will not stand for that. The Bernak has done one thing right, even though it's not perfect and contorted through the private market. They are going to use every resource and opinion page to attack that one thing, but nothing else since 1985. 

Ben's effected the Greenback, with a twist. If he succeeds (as a matter of degree and expectations), Lincoln Greenbackers will have their best argument since 1913 and a real case study from which to build.  

Mon, 11/15/2010 - 11:45 | 727512 TumblingDice
TumblingDice's picture

They're buying that public debt from the banks, at record high prices. I'd say that its a nice arrangement for the banks. Bernanke isn't trying to create anything alike the greenback. The greenback was issued directly by the treasury and had no intermediary private corporation/cartel to control the demand.

Mon, 11/15/2010 - 11:49 | 727554 Fraud-Esq
Fraud-Esq's picture

However the frb's come to own them, the taxpayer is not paying interest on the debt the FRB holds. That's the closest contrivance to a Greenback, minus, as you say printing them directly. This is the next closest thing...

If Ben bought another round of MBS, you think the titans would be complaining?

Mon, 11/15/2010 - 12:04 | 727593 TumblingDice
TumblingDice's picture

The banks won't mind that the fed is buying treasuries as long as the private(corporate/mortgage) -treasury spread doesn't deteriorate.... It will eventually and there will be another crisis but that outcome is better than the spread staying the same with both yields rising.

the taxpayer is not paying interest on the debt the FRB holds.

Not sure about this, can you elaborate?

Mon, 11/15/2010 - 13:57 | 727891 Fraud-Esq
Fraud-Esq's picture

By federal statute, the FRB can't earn interest from UST. That's why some of the big guns are angry, I think. Never before have we got interest free debt. 

Bank benefactors and rich families have long fought for this single exclusive benefit. They just lost it for a moment. Whether it's pure emergency or develops idealogical legs, we shall see.

Mon, 11/15/2010 - 11:19 | 727499 Deflationburger...
Deflationburger with Fleas's picture

Hey Tyler -

 

For a good laugh

 

http://www.youtube.com/watch?v=PTUY16CkS-k

 

Mon, 11/15/2010 - 11:36 | 727525 gwar5
gwar5's picture

Bernanke has been thumbing his nose to the world for months about QE II. 

Why would he listen now? 

 

People now want to be on record being opposed, so when they take their grandchildren to 

school in an oxcart, they can explain to them how it didn't have to be this way.

 

Mon, 11/15/2010 - 17:20 | 727548 fallst
fallst's picture

He once was Professor Bernank,

He now heads a Big Private Bank,

They call it "The Fed",

We know They Misled,

Now no more gas inside tank.

Mon, 11/15/2010 - 12:02 | 727584 countziggenpuss
countziggenpuss's picture

Wow..........  so a bunch of twits who have been wrong on pretty much everything over the past decade are now joining forces........  what is the stupidity multiplier for this group?

Mon, 11/15/2010 - 12:11 | 727607 Jones79
Jones79's picture

Dick Move is our era's Tiresias but without the foresight part. 

Mon, 11/15/2010 - 12:17 | 727622 Fix It Again Timmy
Fix It Again Timmy's picture

Cmon' Bernie, be like Larry - PULL IT!

http://www.youtube.com/watch?v=7WYdAJQV100

 

Mon, 11/15/2010 - 12:40 | 727701 mauistroker
mauistroker's picture

TPTB know QEII won't help main street. It's not meant to. It's an attempt to export inflation - especially into China. The Chinese know it. The Chinese authorities know inflation (especially food) has proven to be a big problem for them historically. This is a geopolitical move intended to foment unrest around the world. Bernanke is not 'trying to destroy the dollar' - how fucking stupid are the people who really think this? They need TURMOIL worldwide to keep the dollar as a relative safe haven and TIME to let the miscreant banks heal. 

Mon, 11/15/2010 - 13:09 | 727790 flrzero
flrzero's picture

I recall Bove stating that Citi was a buying opportunity of a lifetime at around 18. I would think that a hell of a lot more QE would be necessary to achieve that. In fact I think a round of hyper-inflation would be necessary to hit that price target.

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