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And Wow: Fed's Hoenig Says United States Has "Deeply Undermined Free-Market Capitalism"
The Fed mutiny has arrived:
- HOENIG SAYS U.S. HAS `DEEPLY' UNDERMINED FREE-MARKET CAPITALISM
- HOENIG WARNS OF ESCALATING SERIES OF CRISES WITH RISING COSTS
- HOENIG: LARGE FINANCIAL FIRMS CAN EXPECT BAILOUTS IN FUTURE
- HOENIG SAYS BIG FINANCIAL FIRMS MUST NOT HOLD ECONOMY `HOSTAGE'
- HOENIG: LARGE FIRMS WERE `GAMING' CAPITAL STANDARDS PRE-CRISIS
- HOENIG:BIG FIRMS `HAVE SIGNIFICANT INCENTIVES' TO INCREASE RISK
- HOENIG: TOO-BIG-TO-FAIL FIRMS POSE `GREATEST RISK' TO ECONOMY
- HOENIG SAYS BIG FINANCIAL FIRMS ENJOY `HUGE' FUNDING ADVANTAGE
And the last one:
- FED'S HOENIG SAYS `HISTORY IS ON MY SIDE'
Step. away. from. the. bathtub. Tom.
In other news, someone at the top finally tells the truth about this shitshow of a banana republic.
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so did this guy *just* get the memo or what?
Or will Hoenig go the way of Axel Weber?
Remember his reasoning:
According to BloombergWeber said “a lack of’ ‘acceptance’
among euro-area leaders for his views on monetary policy”
motivated him to go.
This is bullish, right?
http://mlb.mlb.com/images/2002/08/06/5DskhCqO.jpg
even the monkey in a diaper knows it's time to BTFD!
JPM squirreling away cash, putting on their (sad) game faces. wait for it....
have you seen their new ad about how they have "helped 200,000 americans stay in their homes"
With $10/gal fuel, I doubt any American is gonna be able to afford wheelin' around much...
Really? Wow. Thats not good. Now what?
My God the man must be reading ZeroHedge.
Also two editorials in the WSJ today on themes ZH has been harping on forever: the myth of corporate cash hoarding and Fed induced (and exported)food/commodity inflation in other parts of the world.
good to see
tungsten bitchz
I NEED TUNGSTEN TO LIVE!!
http://www.youtube.com/watch?v=oCIXnhjSnM8
I want whatever Tom is smoking.
Break.... The..... Banks!!! (And dismember the Squid)
It beats the alternative... breaking money as we know it.
why do you think he's saying this now?
I would hazard "to save the TBTF banks" because everything they say is intended to save the TBTF because they are too big to fail. But I don't see how this does that. More likely, a TBTF is in fact about to fail, and he going to take advantage of the opportunty by setting up a story like this: "The TBTF are a problem, I just said that, and look everyone right here we have a TBTF failing as we speak. So problem solved."
a tactic like deny, deny, deny OMG WE'RE ALL GONNA DIE. bailout immediately
maybe
they will need to sacrifice one of their own to preserve the rest. Who will it be? So QE3 is just a slight of hand to distract from the next (shitty) asset purchase regime. There it is. I even named it. "SAPR"
And a sapper is someone who lays explosives in war time.
Works for me.
I wonder.
Hoenig is a figure-head. He is powerless to change this, and goes to every Fed meeting knowing good and well that Bernanke will hand him his posterior. That becomes even more frustrating as Hoenig sees incontrovertible evidence that Bernanke is following a disasterous policy. Even the frikkin' WSJ calls Benron out. Even the frikkin' WSJ. Hoenig will need to avoid large volumes of alcohol and pounding his head against walls.
Big show, bad banks, naughty financiers- some modicum of punishment to soothe the savage beast that is the public. Banks will be bailed out- this is the one sentence to be taken away from the whole tirade.
Just as the Irish are being told senior bondholders will suffer some loss, but they won't.
The people will be cowed, because they are so easily cowed. They fail to realize or have the integrity to demand and create change. History continues to tell this story, the actors change, but the ending is always the same: predators eat their prey.
did you watch the Irish debate on cspan?
Thomas Hoenig is sounding more and more like Jon Hoenig. Perhaps Bloomberg attributed this suite of quotes to the wrong chap.
HOENIG: LARGE FINANCIAL FIRMS CAN EXPECT BAILOUTS IN FUTURE
HOENIG SAYS BIG FINANCIAL FIRMS MUST NOT HOLD ECONOMY `HOSTAGE'
Has this retard forgotten that he is a part of the FEDERAL RESERVE?
Who makes the laws in this country?
Will someone in our Federal Government grow a pair?!
How children will - or will not - grow up.
If Value and Trust are defined - soon - the pain shall be swift - compared to a redefinition of these odd measurements of being human - and - how a suffering will be forced into our breath.
I speak of this to those I know in my real world and I am the one left behind or out of norms.
And all I have left is to laugh in my light.
Probably a misdirection or good cop / bad cop end around; otherwise Tom had an epiphany, found his ass from his head, and wants to be on the right side of history.
Yes, getting warm there Milton. Maybe he's getting while the getting is good.
I trust nothing is spontaneous from these Mandarins. Hoenig is setting us up.
In order to keep my modest holdings in this world, if not increase them; I would like to know what we are getting set up for.
The bailout business model is still going strong. Why do anything of real value as a business when you can get bailed out and still pay yourselves huge bonuses? Meanwhile your bank's money can be given away to your "friends" in the form of "loans" or purposely bad trades just as has happened in the past (savings and loans crisis, BCCI, etc.) only this time instead of jail or ruin, you have the promise of more free money. Sounds great.
Just shows how the idea of a state is complete utter BS. The guy is pretty high up, yet, none of this was put into policy...
somewhat unfair, see below
Just abolish the Fed, don't put false hopes on changing its head then thinking it'll change anything.
Feb. 17 (Bloomberg) -- Federal Reserve Bank of Kansas City President Thomas Hoenig said soaring farmland prices may be the result of an unsustainable bubble that could damage the U.S. economy when it bursts.
“My nagging concern remains that current distortions in financial markets are increasing the risk that imbalances in asset markets will catch agriculture -- and the U.S. economy more generally -- by surprise once again,” Hoenig told the Senate Agriculture Committee today, according to his prepared testimony.
Hoenig, the lone dissenter from every Fed meeting in 2010, has warned that the Fed’s near-zero interest rates and record monetary stimulus could lead to “future imbalances and increase risks to longer-run macroeconomic and financial stability.”
Hoenig spoke after a report today from the Chicago Federal Reserve showed Midwest farmland values rising 12 percent in the fourth quarter from a year earlier. In Hoenig’s district, the Kansas City Fed has recorded cropland prices nearly 20 percent above year-earlier levels in Kansas and Nebraska, Hoenig said.
“This run-up in farmland values has occurred, however, amid financial markets characterized by high levels of liquidity and unusually low interest rates,” he said. “It is nearly impossible to determine how much of the farmland boom may be an unsustainable bubble driven by financial markets and how much results from fundamental changes in demand and supply conditions.”
Rising Commodities
Farm prices have also been bolstered by rising commodities. The price of corn has doubled in the past year, to $6.64 a bushel from $3.33, according to the Department of Agriculture. The price of wheat has risen 77 percent in the same period.
Fed chairman Ben S. Bernanke attributed the rise in crop prices primarily to growing demand in emerging markets in remarks at the National Press Club in Washington on Feb. 3.
“The most important development globally is the fact that the world economy is growing more quickly, particularly in the emerging markets,” Bernanke said, when asked why food prices were rising.
Hoenig said that an increase in borrowing costs could cause a drop in land prices.
“Rising interest rates often coincide with falling farm revenues and higher capitalization rates, a depressing combination for farmland values,” he said.
“Even if crop prices remain high but capitalization rates return to their historic average, farmland values could fall by as much as a third.”
Reasons for Optimism
Hoenig noted reasons for optimism because agriculture “entered this period with a relatively strong balance sheet” and agricultural banks “are well capitalized.”
The Labor Department reported today that rising food and fuel prices pushed up the U.S. cost of living more than forecast in January. The consumer-price index advanced 0.4 percent for a second month, led by the biggest increase in food costs in more than two years.
“The issue with inflation is that it always is very small increases,” Hoenig said today in an interview on Fox Business Network. “It starts slowly, perhaps as we’re seeing now, and builds over time.”
Fed presidents rotate voting on monetary policy and Hoenig, 64, will not vote this year. He joined the Kansas City Fed in 1973 as an economist in banking supervision after earning his doctorate at Iowa State University. Hoenig became president of the Kansas City Fed in 1991
That's just fucking amazing. Wow. He just pretty much confirmed QE infinity exists. (of course we all knew that, but for Hoenig to say it is COMPLETELY different for the sheeple as now they'll be forced to understand at least somewhat or dismiss it, but they'll have to address it instead of ignoring it.)
Hey stevie 'wonder' liesman, can you see it now?
Glass-Steagall
Wow, I have to say I wasn't expecting that.
Hoenig: "Yes, we have no bananas."
Wow. We knew here at ZH the bankster mask was already off.
Looks like Hoenig is just confirming all those "conspiracy" theories.
Fine time for Hoenig and the other BS artists at the Fed to start preaching "Free Markets" !!!!
After bailing out the entire failed FIRE sector and still propping it up with money, lies and exemption from rules and laws. Not to mention half the companies on the S&P 500 that needed to roll huge debt when capital markets were frozen. If the Fed hadn't printed an ocean of dollars, picked winers and losers and doled out the money we would have had a chance at wiping the fetid slate clean and have a renewal with new players, new ideas and a new generation.
There is absolutely no way they can say they were in support of free markets. Evidence is exactly the opposite tell. They are supporting state run capitalism favoring cronies.
again, as I pointed out Hoenig has been against this for quite some time. (see above)
Does this mean he is not in favor of QE3 now?
Hoenig is just saying what a lot of us have been saying for closer to 7 or 8 years. "The system is totall rigged."
Question is will they be able to manipulate things to get the bond market back on a bullish trend and are they willing to pay the price by crashing the market?
I'm still out of my IRA based silver proxy PSLV, but I am salivating to get back in. Silver is headed way up long term. I'm just concerned that the tiger might lash out short term to shake the commodity market up even more than yesterday as a policy response.
Why relegate your capital to a captive account destined for either eventual confiscation or exorbitant taxation? The names of the game are 1.) flexibility, and 2.) tangibility. Just go buy physical and forget that people ever fetishized nominal appreciation to captive paper accounts and penurious money "managers."
Planting the seed - insert Precious Metals basket backed currency again, insert Ron Paul bandwagon gaining momentum
Some truths are more revealing than others.
Time to break up the Systemically Dangerous Organizations.
They are not to big to fail, they are to big to exist.
Anti-Trust (Sherman/Clayton), RICO (especially RICO).
The tools exist, use 'em!!!!
Full disclosure on many uncomfortable topics ahead. The next few months will play out interestingly.
This will be the rallying cry for the next great take over.
I see red herrings everywhere and no, I'm not delusional.
ORI
http://aadivaahan.wordpress.com/2011/02/23/ihumor-for-un-funny-days/
That is a non-news. Now, tell me what steps shall they take to turn the ship around from heading an iceberg?
Personally I see non that could save USS Economy! Time (last moment) for that, was right after the internet bubble burst in 2000-2001!
Wasn't he the same guv that was opposed to QE2 because he thought the economy was fine and didn't need it?
(I may have him confused with another Fed guv)
Hoenig and all of them are just hypocrites and liars.
They don't want "Free Markets". Never did.
Their whole approach rests on command and control crony capitalism where they pick winners and losers and channel your tax money where they see fit.
They believe in an elitist, trickle-down economy shaped like a pyramid with an elite at the peak, controlling most of the wealth
Jesus christ, look at the 1 minute action in brent, $2.50 dip buys in a minute??? This is brutal, it wasn't even this bad in 2008...ride it up, then short the shit out of it. Im going to be doing it right this time.
We're gonna hear more and more insiders speak some truth, why?
If they feel we are close to SHTF they will want to deflect any blame off themselves. Bill Gross at Pimpco has been doing this lately too. "Don't burn my house down, I came clean!, Look over there at him!"
Somewhere in this confusing statement , if you look closely, You will see " I buried Paul".
something doesn't add up here - as we approach Bear Stearns 3rd anniversary this guy becomes a veritable ZH contributor in the order of Krieger? no way, there's more to this
Very much agree.
Yup. This is like Pilate washing his hands. "I've come clean, you guys got what you wanted. I'm outta here."
Hoenig has been dissenting for well over a year now.
"Something similar is happening at a cafe near the airport in Seattle. The owner travels a lot and recognizes the TSA agents when they come in. He refuses to serve them and asks them to leave."
That guy is my new hero.
edited to add- what is up with the math questions to be able to post, some of us are liberal arts type dunces...32 minus (-58) WTF/over
edited to add again- and I got it wrong...:(
Well maybe they should stop giving free money to looters? Hmmm....mabe that would be a start? When someone holds you or one of your own for ransom....is it wise to give in? Not according to police negotiation specialists. Why? Because if you do then the ante usually goes up....and if the person is dead anyway then you have nothing to bargain with. Perhaps this lesson could stand to be learned by the FED in relation to the TBTF banks that are holding them ransom. You keep giving in and the ante goes up all the while they may be dead anyway. We know they are inslovent and so what does this accomplish? Nothing...simply delays the inevitable. Take the pain and get on with it.
Deleted.
Thank god. I was worried there for a minute....
exactly - gotta burn the states though.. that whole United States of whatever sounds very pro union.. best to bust that up
i am finally starting to depress myself with my comments..this game is over
But your comments have been good ones, and it is over. So there is nothing really to be depressed about. We all came here and said what there was to say. Witnesses to the end of something that was a long time in the making.
So what comes next? Near term, mid term, long term ... watch this Titanic sink and wonder what comes next.
Because ... it's nearly here.
In order to create a more perfect Union.........
TBTF=TBTE
true cougar -
we will need to be ready to lead or future history books will have no need to reference ZH with their convenient recollections
Yes indeed Cougar
-- King Crimson, from "In the Court of the Crimson King"
Liby,Liby on the label,label.
"LARGE FINANCIAL FIRMS CAN EXPECT BAILOUTS IN FUTURE "...is he forshadowing the March Delivery date for The JPMorgue ?
Shhhhhhhhhhhhhhhh! That's our secret! Stand for delivery! Stand for justice!
That was today's 5 yr auction
Isn't hoenig going to be out soon? His term is up or something?
Some of the PTB are getting scared shitless now. Hoenig is doing exactly what Gross has been doing -- talking like a populist so he won't lose his scalp in the ensuing anarchy. Or maybe he and Gross actually have a conscience. Not sure but it seems like ass covering to me
I've been reading that ROAD to ROOTA guy lately. Does anyone here think that his theory will play out ? ..... where we wake up one morning & the FEDERAL RESERVE BANK is gone & we enter a new golden age ? His theory is very intriguing. We know there is an end-game & it's either going to be our enslavement or our freedom ......... what do you guys on ZEROHEDGE think about BIX WEIR & his ROAD to ROOTA theory ? p.s. in his theory Alan Greenspan & Bernanke are good guys who are just working the system to end it.
Hope for the best, prepare for the worst! Just ordered some reloading (ammo) equipment, hope it gets here before UPS runs out of gas!
pray for hoenig's health.....the cia does not approve and will probably target him for executive action....
$Trillions stolen from the middle class and their unborn grandchildren....
And there has been no accountability....
The whole current movement focuses on what has happened....happened in the past....and let"s move on....
There is a little item missing.....ie the stolen funds and this joke of a FASCIST US Govt....run by BANK puppets....
There has to be 1000's of names in jail in order to move forward....
Including current and past government officials who have enabled the whole scheme....
Once you realize what was stolen has no value you will feel better.
Got Food ?
I don't think anybody is going to even try to pay these pricks anything.
They're just selling bad US debt for other FU currency. Meaningless charad.
Real value is in gold and the stuff in the ground they're fighting over in the ME.
Great individual and gutsy.
let's start a movement.
Toss the Bernank and replace him with Koenig!!!!!
All we have to do is promise Obama we'll reelect him if he rolls over on the Bernank !!! LOL.
That's all there is
There ain't no more
Unless we see that BEAR once more
Bennie's clearly lost his senses, telephone poles look like picket fences, the world says "slow down! You've been bought!", but those bills on the printer look just like dots. Sorry Jim, your bear got run over by a Hot Rod Lincoln.
Okay. So all of what he is saying is pretty much a no brainer and at least 24 years late (PPT created in '87). However, did he really say "History is on my side?" Out of all of them that is a pretty ominous statement that S's ATHTF.
Hoenig is one of those great fed guys who is unafraid to discuss anything. he also enjoys discussing why a gold standard is a bad idea.
I want a Beer Standard. More liquidity. Would work for Belgium too.
All the games will stop..... when they set up the gallows next to the Lincoln Memorial and Hang all the crooks who caused this mess. >> Hank Paulson , Ben Bernake, Chris Dodd , Barney Frank , and the boys at Goldman Sachs / JP Morgan ...
the list goes on.........
Oh really? Geez what a revelation. All of our banks were dead in 2008. We recapitalized them with more funny money. But there is a price to pay. Tunisia fell. Egypt fell. Bahrain, Libya and Algeria will fall. Maybe China and Saudis also. Our economy is so vulnerable. This will bring us down. Face it: the only thing going for us is a huge military industrial complex. Military bases in 180 of the 200 countries out there. Classical fasict expansionist empire, now about to fall.
What can I say but Great Job Benny, you asshole.
OK, he gets a gold-plated lamppost...
Papered.
Wow...is right.
Some damn good truth juice that boy is drinking.
Be funny to get Obama and Geithner all juiced up on some of that "truth juice" and see what might come out of it.
No link to origional source?
I hope someday Hoenig will be the Fed chair who ends up wiping the ass for Bernanke and restore Fed's credibility.
Hmmmm...all true...or is he just the first rat to leave a sinking ship?
This guy has the potential to be the next Volcker, if only somebody gives him the chance.
When does Bernanke's current term expire?
Here's what'll happen: high commod price pushes economy back down, Bernanke panics, pushes for QE3, Fed dessent surfaces, dollar goes down, commods keep going higher, worldwide death spiral, Obama gets voted out in 2012, Bernanke gets dumped.
my roommate works for the FED in KC...their new $75mm facility has a fitness facility, flat screens galore, ping pong tables, pool tables, stripper pole, etc...
Ben comes to the office sometimes and makes it rain on a ho
I am starting to lean with some earlier posts, to the effect that a Judas Goat is getting set up.
The econ is about to take a dive so bad that no concerted effort is going to be able to hide it.
Thus, someone is going to have to take the fall.
My guess is, Bernanke.
First Hoenig, now Plosser...
Fed official mulls early end to bond-buying plan- AP
Jeannine Aversa, AP Economics Writer, On Wednesday February 23, 2011, 4:00 pm ESTWASHINGTON (AP) -- A Federal Reserve official said Wednesday that he may push for an early end to the central bank's $600 billion bond-purchase program if inflation shows signs of spreading.
Charles Plosser, president of the Federal Reserve Bank of Philadelphia, is an outspoken critic of the program, which is slated to end in June...
Bankers are government sponsored terrorists.