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Ben Loses The Long End

Tyler Durden's picture


Today's NFP data has sent the treasury complex in a tizzy: the 30 year has now lost its support levels and the yield is up 6 basis point to 4.72%. And since this move would have been expected in the case of a huge NFP beat ('economy improving' rhetoric), but not on today's atrocious result (and if the BLS needs the services of snowy apologists, like DB'a LaVorgna whose only job lately is to explain why economic data are subpar due to the motion of celestial bodies, perhaps it needs to refine its seasonal adjustment to account for snowfall in, gasp, winter), this is merely yet another indication that the long-end vigilantes are once again making a push for an outright QE3 announcement, a development which was predicted by Zero Hedge at the time QE2 was launched.

Below one can see the massacre in the long-end ever since the launch of QE2.

The 2s10s are about to take out highs.

And the only winner is...


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Fri, 02/04/2011 - 11:29 | 934772 franzpick
franzpick's picture

I'll venture Shumway would have outperformed this year using TBT and short long bond strategies;  5, 10 and 30 year bond yields today jumping to 8-9 month highs, with the 30 year challenging 5 year support, and below that, par.  Get ready Ben, your "100% confidence" game is falling apart.

Fri, 02/04/2011 - 11:34 | 934781 nope-1004
nope-1004's picture

But, but....

He said he can turn it around in 15 minutes?

But he also said that rising prices in food staples were a result of "more sophisticated diets".  Watching starving people line up for food somehow leads me to think that sophistication is quite far down the list.

Yes, get ready Gen Ben.  Your idiot banner is being made now.... somewhere offshore no doubt.


Fri, 02/04/2011 - 11:45 | 934839 Quinvarius
Quinvarius's picture

Eating raw corn and wheat is all the rage at Martha's Vineyard.  No more slicked back hair, long thin cigarettes, and small sandwiches.  The sophisticated are now all about munching the raw grains.

Fri, 02/04/2011 - 11:48 | 934859 william the bastard
william the bastard's picture

Have the resupply boats been embargoed?

Fri, 02/04/2011 - 11:51 | 934871 franzpick
franzpick's picture

Maybe Sarah is right:  If you can't pick it, or shoot it, don't eat it

Fri, 02/04/2011 - 11:56 | 934889 economessed
economessed's picture

Franzpick, Sarah Jessica Parker got the saying wrong.  It goes:  if you can't drink it, drive it, or take it to bed, it's not worth having.

Fri, 02/04/2011 - 12:17 | 934959 snowball777
snowball777's picture

Curiously, despite all that fiber, they're still completely full of shit.

Fri, 02/04/2011 - 12:39 | 935047 Problem Is
Problem Is's picture

+1... Classic.

Fri, 02/04/2011 - 11:49 | 934863 B9K9
B9K9's picture

In war, truth is the first casualty. Aeschylus

Reacting to lies spewed by the minions of the Evil Empire is like falling for a pseudo-troll like Hamy.

All you need to do is remind yourself as to the true extent of the situation we collectively find ourselves. If you believe humanity is actually fighting a shadow war against an array of powerful enemies, then everything becomes perfectly clear.

Fri, 02/04/2011 - 12:57 | 935123 TruthInSunshine
TruthInSunshine's picture

Dire warning directed squarely at Bernanke, from the mouth of Richard Fisher, President of Dallas Federal Reserve Branch in Dallas and FOMC Member:

“The new Congress and the new staff in the White House have their work cut out for them. You cannot overstate the gravity of their duty on the economic front. Over the years, their predecessors — Republicans and Democrats together — have dug a fiscal sinkhole so deep and so wide that, left unrepaired, it will swallow up the economic future of our children, our grandchildren and their children. They must now engineer a way out of that frightful predicament without thwarting the nascent economic recovery.

“I have been outspoken about the limits of monetary policy as a salve for the nation’s fiscal pathology. The Fed has done much, in my words, to provide the bridge financing until the new Congress gets to work restructuring the tax and regulatory incentives American businesses need to confidently expand their payrolls and capital expenditures here at home.

“The Federal Reserve has held rates to nil. We have expanded our balance sheet to unprecedented levels. After much debate — which included strong concern expressed by one member with a formal vote and others, like me, who did not have voting rights in 2010 — the FOMC collectively decided in November to temporarily undertake a program to purchase U.S. Treasuries that, when added to previous policy initiatives, roughly means we are purchasing the equivalent of all newly issued Treasury debt through June.

“By this action, we have run the risk of being viewed as an accomplice to Congress’ fiscal nonfeasance. To avoid that perception, we must vigilantly protect the integrity of our delicate franchise. There are limits to what we can do on the monetary front to provide the bridge financing to fiscal sanity. Last Friday, speaking in Germany, [European Central Bank President] Jean-Claude Trichet said it best: ‘Monetary policy responsibility cannot substitute for government irresponsibility.’

“The entire FOMC knows the history and the ruinous fate that is meted out to countries whose central banks take to regularly monetizing government debt. Barring some unexpected shock to the economy or financial system, I think we have reached our limit. I would be wary of further expanding our balance sheet. But here is the essential fact I want to emphasize today: The Fed could not monetize the debt if the debt were not being created by Congress in the first place.

“Those lawmakers who advocate ‘Ending the Fed’ might better turn their considerable talents toward ending the fiscal debacle that has for too long run amuck within their own house. The Fed does not create government debt; fiscal authorities do. Deficits and the unfunded liabilities of Medicare and Social Security are not created by the Federal Reserve; they are the legacy of those who control the purse strings — the Congress, working with the president. The Fed does not earmark taxpayer money for pet projects in local communities that taxpayers themselves would never countenance; only the Congress does that. The Congress and administration play the dominant role in creating the regulatory environment that incentivizes or discourages job creation.

“… A reader of Shakespeare will recall the dialogue between Glendower and Hotspur in Henry IV. Glendower claims, ‘I can call spirits from the vasty deep.’ And Hotspur replies, ‘Why, so can I, or so can any man; But will they come when you do call for them?’

“We shall see if the new Congress will prove worthy of the power the American people have ‘loaned’ them, and, together with the president, actually draw the spirits of fiscal reform and sanity from the ‘vasty deep’ to at long last implement meaningful fiscal and regulatory policy that incentivizes private-sector job creation here at home while arresting the hemorrhaging of our Treasury. If they do, then more Americans will find work and be better off, better paid, and freer to make their own decisions about the economy.

“If they don’t, then woe to our children, their children, and the American Dream.”

Fri, 02/04/2011 - 13:24 | 935262 Cindy_Dies_In_T...
Cindy_Dies_In_The_End's picture

He's just as disingenous as the rest of them, he pays lip service, then acts right in line with his masters.



Fri, 02/04/2011 - 12:22 | 934984 spekulatn
spekulatn's picture

Get ready Ben, your "100% confidence" game is falling apart.


Well said franzpick.

Fri, 02/04/2011 - 12:52 | 935104 Jay Gould Esq.
Jay Gould Esq.'s picture

LaVorgna is the Knucklehead Smiff to Liesman's Paul Winchell. Yet another monetary policy apologist.

Fri, 02/04/2011 - 11:30 | 934774 plocequ1
plocequ1's picture

Does this mean no POMO?

Fri, 02/04/2011 - 11:39 | 934816 redpill
redpill's picture

no mo pomo? say it ain't so joe!

Fri, 02/04/2011 - 12:00 | 934900 Urban Roman
Urban Roman's picture

just when we were getting used to the pomo mo-mo

Fri, 02/04/2011 - 12:06 | 934922 plocequ1
plocequ1's picture

When i see it, I will believe it

Fri, 02/04/2011 - 11:30 | 934776 Cocomaan
Cocomaan's picture

Guess we need that 100 year bond so we can start the interest rate march all over again.

Fri, 02/04/2011 - 11:35 | 934797 franzpick
franzpick's picture

Any such 100 year bond will some day trade below 50, or does everyone want the under ?  I traded 30 year futures back in '81 below 57, and it can happen again.

Fri, 02/04/2011 - 12:41 | 935055 Cursive
Cursive's picture

Remember the British Consuls!

Fri, 02/04/2011 - 23:23 | 936786 IQ 145
IQ 145's picture

 I love your screen name. One of my life-time favorite quotes is from Franz Pick; ":Bonds are instruments of guaranteed confistication". The issuing agent will never, never, return to you your purchasing power; never. There's no reason whythey should, and they will not do it. It's absolutely imperative that American Citizens begin thinking in terms of purchasing power; there is no unit of account; no unit of money. Such a thing does not exist. To make calculations in terms of "dollars" is the most egregious folly.

Fri, 02/04/2011 - 11:49 | 934862 EscapeKey
EscapeKey's picture

Personally, I'm waiting for a 5,000 year bond. All this nonsense about civilizations falling... won't ever happen in the US.

Fri, 02/04/2011 - 12:06 | 934921 cxl9
cxl9's picture

The British government issued perpetual bonds in 1751 which are still paying coupon today.

Fri, 02/04/2011 - 23:19 | 936778 IQ 145
IQ 145's picture

 Please, please, think. use your brain, do your homework. the "coupon" payment today on a bond that represented several years of wages for a skilled worker when it was issued is sufficient to buy a hamburger. The subject under discussion here is inflation. Please engage brain.

Fri, 02/04/2011 - 11:57 | 934891 Caviar Emptor
Caviar Emptor's picture

It's all in the packaging. Along with the 'Century of Golden Progress' Bond you get some real estate in Michigan. 

Fri, 02/04/2011 - 12:41 | 935063 Uncle Sugar
Uncle Sugar's picture

I'm thinking a zero coupon 100 year bond would work. Then they could boost the inheritance tax to recoup and interest paid to heirs.

Fri, 02/04/2011 - 11:33 | 934779 JasperNewtonDaniel
JasperNewtonDaniel's picture

Welcome to QEternity, where there is no timeline long enough to see Ben's madness drop to zero. 

Fri, 02/04/2011 - 11:53 | 934878 william the bastard
william the bastard's picture

A double bind is an emotionally distressing dilemma in communication in which an individual (or group) receives two or more conflicting messages, in which one message negates the other. This creates a situation in which a successful response to one message results in a failed response to the other (and vice versa), so that the person will be automatically wrong regardless of response. The double bind occurs when the person cannot confront the inherent dilemma, and therefore cannot resolve it or opt out of the situation. For example, if your employer tells you to do a job but doesn't allow enough time for you to do it and you are in danger of losing your job if you question the situation you are in a double bind.

Fri, 02/04/2011 - 12:13 | 934942 New_Meat
New_Meat's picture

" that the person will be automatically wrong regardless of response."

Oh, like being a husband?

Fri, 02/04/2011 - 12:17 | 934958 asdasmos
asdasmos's picture

or being a bastard?

Fri, 02/04/2011 - 13:11 | 935204 tmosley
tmosley's picture

Or not owning gold.

Fri, 02/04/2011 - 11:59 | 934894 andybev01
andybev01's picture

Snow apologies, snow regrets.


Snowy egrets

Fri, 02/04/2011 - 11:33 | 934780 umop episdn
umop episdn's picture

I love the smell of burning bankster paper.

Fri, 02/04/2011 - 12:28 | 934930 MsCreant
MsCreant's picture

Removed because it was in bad taste.

Sat, 02/05/2011 - 04:43 | 937077 Hephasteus
Hephasteus's picture

You are so awesome MsCreant. You know when it's time to bring the mean and when it's time to stand down.

Fri, 02/04/2011 - 11:33 | 934785 Temporalist
Temporalist's picture

The Bernank didn't lose!  The Bernank never loses!  If the yield is up there is recovery; if yield is down that is what they wanted. 

Fri, 02/04/2011 - 11:41 | 934825 Ricky Bobby
Ricky Bobby's picture


Fri, 02/04/2011 - 11:36 | 934790 TrihumpTheInsultDog
TrihumpTheInsultDog's picture

Don't worry, with crude at about $100/b it won't be long before that money needs a home on the long end of town.

Part of the plan.

The facebook investments go to the Chinese communist party leaders so they don't engage in selling. The gas tax goes to the towelheads so they do engage in buying.

Fri, 02/04/2011 - 11:34 | 934791 SpeakerFTD
SpeakerFTD's picture

Dear Ben,

You can either save the bond market or the stock market, but not both.  

Your choice, mate.


The Market


<Irwin M. Fletcher, you choose.....And I lost again.>

Fri, 02/04/2011 - 11:53 | 934880 Boston
Boston's picture


It would be interesting to compare the total losses in US Treasury and Agency paper since the sell-off began in early November vs. the US equity market gains over the same time period.


Fri, 02/04/2011 - 11:34 | 934792 thepigman
thepigman's picture

Ben can't hold the long end of his

fraud down. The wizard has no clothes.

Fri, 02/04/2011 - 11:35 | 934799 A Man without Q...
A Man without Qualities's picture

He's given birth to a monster, turned the laws of the markets on their head.  Weak data  causes commodities to rally, equities to follow and bonds to sell off, in expectation of more free money.  Big corporations have zero incentive to hire domestically, sensible investment choices are rendered meaningless.  What a fucking mess.

Fri, 02/04/2011 - 11:40 | 934818 thepigman
thepigman's picture

Interesting, eh? It's all bullshit

and the only reality is QE handouts.

Fri, 02/04/2011 - 11:41 | 934822 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

"Order out of Chaos"

- The New World Order

Fri, 02/04/2011 - 12:57 | 935126 aerojet
aerojet's picture

He was supposed to bring balance to the force, not destroy it!

Fri, 02/04/2011 - 11:44 | 934837 DonnieD
DonnieD's picture

This is the twighlight zone.

Fri, 02/04/2011 - 11:37 | 934801 Sudden Debt
Sudden Debt's picture

And as expected, the market will go down soon untill they get what they want.

The dow will go red today and the next 2 to 3 weeks will start to get bloody for the braves that went long.

Fri, 02/04/2011 - 11:37 | 934806 CrashisOptimistic
CrashisOptimistic's picture

I am certainly confused about the unemployment report.

Are there demographics built in?  The baby boom is retiring.  Would that not shrink the total of those looking for work?

Fri, 02/04/2011 - 11:52 | 934873 EscapeKey
EscapeKey's picture

How would that be a good thing? That would put a substantial extra burden put on Medicare/aid + SS.

Fri, 02/04/2011 - 12:16 | 934955 CrashisOptimistic
CrashisOptimistic's picture

It's not good vs bad.  It's why?  Why is the workforce shrinking as population rises?  Answer: Retirees?

Fri, 02/04/2011 - 12:27 | 935003 MachoMan
MachoMan's picture

Not when they have to be trotted out from the pasture to be put back to work to pay for rising living expenses...

Fri, 02/04/2011 - 13:27 | 935276 Cindy_Dies_In_T...
Cindy_Dies_In_The_End's picture

No because they aren't retiring. Ben is a$$ raping any interest they would live off of from their savings.

Fri, 02/04/2011 - 11:38 | 934809 The Axe
The Axe's picture

I agree---yields up recovery..yields down awesome...more QQQQQQ...give me more QQQQQQ

Fri, 02/04/2011 - 11:38 | 934810 Racer
Racer's picture

Rules for spin:

Bad, blame the weather

Good, credit the 'recovery'

Fri, 02/04/2011 - 11:38 | 934813 RobotTrader
RobotTrader's picture

It is obvious that the asset allocation out of bonds and into stocks is becoming more urgent.

Consumer plays like LULU making new, world record, lifetime highs.

Fri, 02/04/2011 - 11:40 | 934821 HamyWanger
HamyWanger's picture

I agree with Robot. The money flowing out of bonds can only reach one destination: stocks.

Fri, 02/04/2011 - 11:42 | 934827 SheepDog-One
SheepDog-One's picture

Exactly, anyone with any common sense is clearly dashing to buy da equity bubble top, great idea!

Fri, 02/04/2011 - 11:51 | 934872 Temporalist
Temporalist's picture

And there is only a handful of stocks like LULU and AAPL that all the momos are rushing to like lemmings off a cliff.  Momotrader being one of them.

Fri, 02/04/2011 - 11:45 | 934843 TrihumpTheInsultDog
TrihumpTheInsultDog's picture

Redemption by who? Is the FED liquidating in order to buy into classes that cause further inflation so certain currencies will depeg?

Many destinations.

Fri, 02/04/2011 - 11:53 | 934881 EscapeKey
EscapeKey's picture

So, did you fill in an application form on BusinessInsider's site yet?

Fri, 02/04/2011 - 11:42 | 934824 thepigman
thepigman's picture

You are not an Elliott waver, are you


Fri, 02/04/2011 - 11:46 | 934845 RobotTrader
RobotTrader's picture

Those E-Woofers are among the worst.  All their analysis is backward-looking, terrible at predicting the future.

I only use one indicator:

Which way are the PigMen pushing the tape?

Up or down?

Fri, 02/04/2011 - 11:49 | 934867 thepigman
thepigman's picture

The pigmen in Shanghai are a leading

indicator for me. I don't think we stand

a chance of decoupling.

Fri, 02/04/2011 - 11:50 | 934869 thepigman
thepigman's picture

Something smelly there.

Fri, 02/04/2011 - 11:53 | 934879 thepigman
thepigman's picture

Something the bernank can blame

a downturn on.

Fri, 02/04/2011 - 12:18 | 934963 Tom Servo
Tom Servo's picture

Are you paid per post, or do you enjoy debating with yourself?


Fri, 02/04/2011 - 12:15 | 934952 New_Meat
New_Meat's picture

up for now ;-)

Fri, 02/04/2011 - 13:13 | 935217 tmosley
tmosley's picture

lol, Captain Hindsight is criticizing others for being backward looking.

Not that I agree with Elliot wavers, I just find the hypocrisy HILARIOUS.

Fri, 02/04/2011 - 11:47 | 934849 thepigman
thepigman's picture

I say that since there's something

wrong with the emerging markets and

we are still globally correlated with them

which the Bernanke can do nothing


Fri, 02/04/2011 - 12:25 | 934991 A Man without Q...
A Man without Qualities's picture

I agree - the picture in China seems totally chaotic.  I suspect the central authorities are losing control of the regions and the banks (who are deeply entwined with loans).  They want to cool down the construction bubble, but the banks and local governments know what will be revealed if they do.  I question how profitable most Chinese manufacturers are, it's always been a problem.  With rampant food inflation being the greatest danger to Chinese rulers throughout history, what do they do?

As for Bernanke, fuck him.  He's tried to create a false wealth effect in order to rescue the banks and feels the current levels of the markets are a sign of success.  


Fri, 02/04/2011 - 11:45 | 934842 H. Perowne
H. Perowne's picture

Because when a banana goes into the Cuisinart, it really matters which end went in first.

Fri, 02/04/2011 - 11:54 | 934885 Temporalist
Temporalist's picture

The monkeys don't even wait to peel them...

Fri, 02/04/2011 - 11:42 | 934826 oh_bama
oh_bama's picture

Perfect opportunity to BTFD!

Fri, 02/04/2011 - 12:02 | 934908 william the bastard
william the bastard's picture

The pendulum has swung: STFR!

Fri, 02/04/2011 - 11:49 | 934838 Kristian
Kristian's picture

The question is when the market will react according to what happened before pomo and all other stimulus. Does EW or other technical analysis still count?

Fri, 02/04/2011 - 11:46 | 934846 Tom Terrific
Tom Terrific's picture

This has got to be one of the worse grammatically written paragraphs I've read in quite a while.  "Run on" is an understatement.

Fri, 02/04/2011 - 12:46 | 935064 ebworthen
ebworthen's picture

The number of items and complexity of juggling is usually proportional to the dexterity and experience of the juggler.

The same can be said of writing, and of reading.

If you find following:  long sentences, paragraphs, and large interwoven thoughts (using colons, semi-colons, commas, and parenthesis) difficult, may I suggest Steve Leisman of CNBC or "Green Eggs and Ham" by Dr. Seuss?

Fri, 02/04/2011 - 23:32 | 936801 IQ 145
IQ 145's picture

 ---"worse grammatically written paragraphs---" is simply illiterate. You'll have to postpone the warm fuzzy feeling you get from criticizing others until you learn how to construct English sentences.

Fri, 02/04/2011 - 11:46 | 934848 Robslob
Robslob's picture

It is MUCH easier to steal your money in stocks than many things to blame when the shit hits the fan:

1) weather

2) earnings

3) gulp...profits

4) employment

5) top line sales

6) gulp...fundamentals

7) you get the point...


This will be called the "grand finale" for good reason...the complete and total wipe out of any sucker left trying to play the game.

Fri, 02/04/2011 - 11:47 | 934856 Caviar Emptor
Caviar Emptor's picture

Oh I think QE3 is all but assured. And it looks like many in the markets think so. 

You see, Ben's faith in past policies is unshaken. If the stock market sets new records then all will fall in to place. It has to.

But I have promises to keep and miles to print before I sleep. 

Must keep printing......printing......printing......

Fri, 02/04/2011 - 12:17 | 934960 Hulk
Hulk's picture

You left off the last "and miles to print, before I sleep" Mr Frost!

Fri, 02/04/2011 - 12:50 | 935098 Caviar Emptor
Caviar Emptor's picture

The 'promises' are to his Wall Street overlords. And he won't stop printing. Even from beyond the grave. 

Sat, 02/05/2011 - 04:47 | 937078 Hephasteus
Hephasteus's picture

The woods are lovely, dark, and deep, But I have promises to keep, And miles to print before I sleep, And miles to print before I sleep.

Fri, 02/04/2011 - 12:21 | 934978 Dr. Richard Head
Dr. Richard Head's picture

If I had any video editing wherewithal I would make a nice video mash-up of Dory (Finding Nemo) and Gen Ben’s head.  Mix in “Just keep printing, just keep printing, just keep printing.”

Fri, 02/04/2011 - 12:45 | 935080 Caviar Emptor
Caviar Emptor's picture


Fri, 02/04/2011 - 11:54 | 934882 The Axe
The Axe's picture

They are chasing CMG and LULU  and few other mo-mo....  and rotation out of JPM and BAC  just another computer game....stay away... 

Fri, 02/04/2011 - 11:59 | 934897 thepigman
thepigman's picture

With anemic loan growth, all of the

TBTFs can't be saved.

Fri, 02/04/2011 - 11:57 | 934893 tradewithdave
tradewithdave's picture

What seems to be the problem?  Nuttin' a little persuasion can't resolve...

Not feelin' so reluctant now... are we?  Good.  Let's get back before the big game starts.  


Fri, 02/04/2011 - 12:02 | 934905 orangedrinkandchips
orangedrinkandchips's picture



Fri, 02/04/2011 - 12:15 | 934949 MsCreant
MsCreant's picture

If you can print, are you really leveraged?

Fri, 02/04/2011 - 12:02 | 934909 topcallingtroll
topcallingtroll's picture

I will allow a broad definition of qe. I dont think benny boy has made up his mind yet. I think he is going to let the inflationary and.deflationar monsters battle it out now that he re energized the inflationary monster. I am going to say we see some minor symbolic qe3 type stuff of no consequence maybe 200 billion more at most in dribs and drabs over late spring/summer. Long term yields going up a bit might put a lid on gold and pm's for a while as well as other spec commodities at the margin by offering a nice alternative once long term treasuries trade with a five handle but we probably.still have a couple more tough years full of scary shit. Gdxj cant break past minor resistance at 38 today so far and there is heavy resistance beyween 39 and 40. If i am going to play the pm thingy it will be thru gdxj this time.

Fri, 02/04/2011 - 12:04 | 934912 Buttcathead
Buttcathead's picture

Stawk market is so fake.  I cant belive the shit they keep saying....  I aint never ever gunna buy that trash.  hell no  LOL them mofo's on crack !

Fri, 02/04/2011 - 12:05 | 934920 Youri Carma
Youri Carma's picture

Yeah Tyler you're realy on Top of the news lately and good predictions too!

Fri, 02/04/2011 - 12:09 | 934931 thepigman
thepigman's picture

I have no confidence in the bernank

and am AFRAID....this despite being

a pigman.

Fri, 02/04/2011 - 12:18 | 934961 MsCreant
MsCreant's picture

Now that would be something, if the pigmen were afraid.

Fri, 02/04/2011 - 12:27 | 934970 plocequ1
plocequ1's picture

Im The Lucaman and i also fear The Bernank.

Fri, 02/04/2011 - 12:14 | 934947 Crispy
Crispy's picture

If the slaughter continues it will take the entire commodity complex with it including our beloved metal.


4.75-5% on the long end and bar the door...

Fri, 02/04/2011 - 12:18 | 934966 rubearish10
rubearish10's picture

Well, about 18 ticks more for the 10yr and we'll test the 200 DMA. Then we'll have some real double barrel action.

Fri, 02/04/2011 - 12:20 | 934969 Eric L. Prentis
Eric L. Prentis's picture

Bernanke’s quantitative easing saves the undeserving Wall Street bankers while putting the real economy on a collision course with the reality of high medium and long-term interest rates, sky-high commodity prices, excessive joblessness and political instability around the world. Monetizing the country’s debt is a desperate act by a desperate person, and has absolutely NO chance of working. Bernanke can never stop QE, under any circumstances, and remain Fed chairman. He is only buying time, thereby making our certain economic crash—catastrophic. President Obama, wake-up, please get some different viewpoints; your present economic course is WRONG.

Fri, 02/04/2011 - 12:32 | 934993 TruthInSunshine
TruthInSunshine's picture

Goldman Sachs & JP Morgan are threatening to nuke everything, including equities, unless The Bernank sticks to his script and launches QE 3.0 through 300.

If rising commodity prices appear to get in the way (ironically, as a result of TARP, TALF, & QE 1.0 and QE 2.0 (and QE 2.5), then they've got an app for that, too.


Ben Bernanke truly is a trapped rat, now. He will get heat, no matter what, if he continues the pump of fiat into slush funds of chosen speculators and lets stocks and/or commodities resume their upward rise, and heat if he now has to deal with the terrible fiat-based crisis he has sewn, by withdrawing liquidity.

Either approach detonates jobs, commerce and much of the paper-tiger economy he has constructed on a mirage of a foundation.

At least with falling asset prices, across the board, rather than steam pockets and bubbles pumped for the benefit of those very select with a seat at his table, there would be a pickup in real demand and economic activity.


Pick your poison, Bernank, and be prepared to deal with the consequences. I hope your friends and masters are truly loyal to you as a person.

Fri, 02/04/2011 - 12:34 | 935023 optimator
optimator's picture

Math question:

If Binny puts eight billion dollars in the market and his buddies take away nine billion dollars, how long will it be until they take Binny away?

Fri, 02/04/2011 - 15:05 | 935364 TruthInSunshine
TruthInSunshine's picture

Sack-Frost Capital Advisors, PLLC

"Making good for our clients since 2008."


They're so young and naive. They remind me of a new iteration of LTCM.

Fri, 02/04/2011 - 23:35 | 936809 IQ 145
IQ 145's picture

 Exactly. As my mother used to say, "a black horse of a different color".

Fri, 02/04/2011 - 13:46 | 935365 ejmoosa
ejmoosa's picture

Conversion from cents per gallon to dollars per gallon


Price data for petroleum products found in the Petroleum Marketing Monthly/Annual and corresponding Petroleum Navigator tables will be changed from cents per gallon to dollars per gallon.


And Ben thinks inflation is under control?

Fri, 02/04/2011 - 14:47 | 935630 buzzsaw99
buzzsaw99's picture

No matter how high rates on the long end go stocks and commodties will keep going higher.


BTFD. That is all.

Fri, 02/04/2011 - 15:38 | 935811 Highrev
Highrev's picture

How does QE3 bring rates down when the paper is perceived to be worthless (or next to and rapidly getting worse)?

Rates are going up due to default risk.

QE3 will only exacerbate that. IMHO

Fri, 02/04/2011 - 16:54 | 936106 bbucks
bbucks's picture

But, but, but.......Bernanke said that the yields are going up because the recovery is getting stronger! 

I hope the public wakes up and sees the positive spin for what it is---a big pile of bull*&$^. 

Fri, 02/04/2011 - 21:37 | 936614 Wheatman
Wheatman's picture

Yeah right Tyler, so have you covered your long bond posititons? You, Rosenberg, and even Marc Faber have been touting this rubbish as an inevitable rally trade. Time to dump this rubbish and force the morons to hit the reset button. Hopefully, the idiots will lose their shirts for destroying America.

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