This page has been archived and commenting is disabled.
Bernanke: "QE2 Contributed To A Stronger Stock Market" As TrimTabs Predicts More QEasing Ahead
During today's little CNBC circlejerk shindig, Ben Bernanke, in defense of his disastrous, and now deadly policies, once again confirmed that the (one and only) benefit from QE2 has been to boost stock prices. Oddly enough, there was no mention of surging energy, food and commodity prices. Nor did Liesman ask the Chairman about 43.2 million Americans on foodstamps, just as he did not ask the dictator of the centralized ponzi for his comments on why at last count 50 people in Tunisia were dead protesting, among other, record food prices and cost of living.
From Market Watch:
Federal Reserve Board Chairman Ben Bernanke said Thursday that a
controversial $600 billion bond buying plan has contributed to a
stronger stock market. "Our policies have contributed to a stronger
stock market just as they did in March 2009 when we did the first
iteration of this program," Bernanke said at a Federal Deposit Insurance
Corp. forum on small businesses. "A stronger economy helps small
businesses more than larger businesses. Interest rates are higher but
that's mostly because the news is better. It has responded to a stronger
economy and better expectations." The $600 billion bond buying plan
follows a completed effort to buy $1.75 trillion in government bonds and
Fannie Mae and Freddie Mac-backed mortgage securities.
Obviously, none of this is news to anyone who realizes, as Zero Hedge readers have been told since 2009, that the Fed's one and only goal is to push stock prices higher in some fallacious linkage that the stock market is equivalent to the economy. But that's what happens when the person running the formerly free world is an academic historian with absolutely no real world experience.
And just to confirm this observation, we present Trim Tabs latest press release which states that the "Fed’s Quantitative Easing Works Wonders on Stock Market but Does Little for Economic Growth and Employment." Unfortunately it does a whole lot to make people all around the world cold, hungry, and increasingly angry and in increasingly more cases, dead:
Fed’s Quantitative Easing Works Wonders on Stock Market but Does Little for Economic Growth and Employment, According to TrimTabs Investment Research.
Economy Will Grow Slowly Until Structural Economic Problems Are Solved, and Market Participants Should Expect More Quantitative Easing in Second Half of 2011.
Sausalito, CA – January 13, 2011 – The Federal Reserve’s quantitative easing programs have helped stock market participants, financial institutions, and large companies but have done little to address the structural problems of the economy, according to TrimTabs Investment Research.“Quantitative easing is supposed to produce stronger economic growth and lower unemployment,” said Madeline Schnapp, Director of Macroeconomic Research at TrimTabs. “While QE1 and QE2 have worked wonders on the stock market, their impact on GDP and jobs has been anemic at best.”
In a research note TrimTabs details the negative impact of the economy’s structural problems, including a depressed housing market, enormous state and local government budget shortfalls, higher energy prices, consumers who have muchless to spend than in 2008, and huge federal budget deficits that leave theU.S. vulnerable to the generosity of foreign investors. As a result, the economy has been stuck in slow growth mode despite QE1 and QE2.
“GDP increased a modest 2.7% in the third quarter of last year,” noted Schnapp. “We need GDP growth of 3.0% to 3.5% to significantly reduce unemployment. In addition, employment gains averaged only 94,000 monthly in2010, much less than the 150,000 per month needed to absorb population growth, and consumers collectively have $1.1 trillion less to spend annually than in 2008.”
TrimTabs also highlights a correlation between quantitative easing and equities. Under QE1 the Fed bought nearly $2 trillion in mortgage-backed securities, Treasuries, and agency debt between March 2009 and March 2010, a period in which the S&P 500 soared 67%. Stock prices then sank 13% in the following five months, and now they are up 20% since Fed Chairman Bernanke announced QE2 at the end of August 2010.
“When QE2 ends in June, the economy is in danger of returning to slow growth mode unless its structural problems are addressed,” predicted Schnapp. “We expect the Fed to engage in more quantitative easing until investors are no longer willing to loan money to Uncle Sam at low rates.
h/t Eric and Mark Mansfield
»
- 10869 reads
- Printer-friendly version
- Send to friend
- advertisements -
damn, damn, that finite planet and its finite infrastructure and finite resources!
hedge accordingly.
You've clearly never heard of alternal dimensional worlds. According to that theory, every event creates one and creates alternal universes ALL CONTAINING ANOTHER EARTH!
If only we had a device to get there and rob them blind...
If only we had a device to get there ....
Do we really need a Ph.D. in eCONomics to figure out that when you create trillions of dollars, prices of almost everything go up?
Did he really say that making the stock market higher helps the economy and small businesses?
EXACTLY, ALMOST VERBATUM!
Yes.
Got Nvida, BankofAmerica, AIG ???
Those are not the economy. Trading their stock does not create an economy, either.
Yes... Beta... no Alpha.
Yes... Beta... no Alpha.
I'm convinced that BEnron Shalom Israel Bernank is Satan. No other individual could lie and operate under false pretenses while causing the certain destruction of the entire global finance system. Hedge accordingly indeed.
Did he ever add he also studied Rudy Von Havenstein?
He did, and he found flaws in Von Havenstein's methods, which he is correcting for the ongoing model run. We'll get back to you once the experiment is over. If you are still around and still in condition to care.
his eyes are not that of a sly cougar, his eyes are of an Evil satan beast. they all have eyes of emptiness. these beasts are nothing less of a
satan wimp.
Even better than that!
"A stronger economy helps small businesses more than larger businesses."
Does anyone really believe this guy?
He keeps saying this in the hope that people will believe QE2 is responsible for the 78% rise in stocks so that as long as keeps doing QE people/traders/funds will keep buying stocks and he will look like a hero.
Who cares what he said, this is called propaganda, not an interview
He comes right out and says he's watching the IWM everyday, basically! Mission Accomplished!
And so qe3 will be needed so the stock market doesn't crash and people lose money and more jobs right? So it can never ever end.
Flawless. Absolutely. Flawless.
You only gotta wonder why someone didn't come up with this sooner. It's like free money or something.
shelia B E A R is looking luscious, for a future hunt ress.
She didn't do her job for the "To small to protect/saves" like she did fot the "TBTFs."
interesting series
http://www.youtube.com/watch?v=damy_0HvyUI
Let's add this little gem too:
http://www.marketwatch.com/story/geithner-warns-of-future-bailouts-2011-01-13
Like the picture of Geithner too in this article - narrowed eyes, frown line while reading Jack and Jill went up the hill ....
reading very slow due to speech impediment....
It's not nice to make fun of the handicapped.
can we hear bens thoughts on food riots, soaring food prices, record food stamps, foreclosures and unemployment - what has QE2 done for those items
Ben: "I would be happy to address those issues, except they are not happening anywhere in the world that I personally know of."
Wow, gold stocks are getting totally hammered into the bell.
Must be "pricing in" an end to QE pretty soon.
Poor General Jim really got busted over a boulder on that $1,650 prediction.
No disrespct robo, but I'm in no mood for it today.
There ain't gonna be no mo QE's. Enjoy this one cause thats all she wrote !!
What, no buy the dip? Pick up any NEM yet? It's holding....
Frosty Sack is working a little harder today to keep Harry's and Robo's retirment fund in the green by the bell today.
If only he purchased nvida geez' that was an easy call. They make the graphic chips for all the handhelds and tablets now with the new microsoft deal. Booyaaaa
Gold and the miners have done nothing since oct 20th ( miners = blowtorched )
If only general jim purchased AIG, BAC, NVDA, MIPS, SPRD, in december ( i did ) after gold started trading sideways .... Lol' Maybe another year or two of sideways movement like 2008-2009.
Turd told me 24 hours ago gold was going over $ 1,400.00 soon ??? WTF
He loved it at 300, to be fair.
Fuck you Robo and your stupid gold stocks!
That basturd should be tried for murder!
The guy is such an asshole. I can't believe he is the most powerful man in the world.
I thought Obamie was! ;)
I hope the people of this country take back what's theirs soon.
Politics is a joke, its like two teams playing ball. Cheer for one or the other, but in the end they fuck you over anyway.
...fallacious QE.... blowing another bubble!
I am Ben's raging printing press.....
Time to buy the dip....in Silver. Plus stock up the food pantry and ammo chest.
NO SHIT! NO FUCKING SHIT BERNANKE!
You worthless P.h.D. You are worthless. I don't want a high stock market, I want to fill up my SUV and pay $25 not $100. I want to buy a house for what its worth not some bullshit price (which is I haven't purchased thanks to you) which is why I haven't hired anyone because your enabling of the U.S government is going to cause my taxes going up, either on paper, or via inflation. Which is why you have done nothing but stymie this recovery and caused decades of pain to come.
Asshole.
Amen.
+55
=11111111111111111111111
+ a single malt to go please.
Single malt will go through the stratosphere on these commodity prices - and they have been ramping over the past few years. Ding! Make a chart on prices on single malt over the past decade? Any takers?
+ a single malt to go please.
you have a way of getting right to the point and driving it home! Well done.
I think unemployment of young males under 25 is nigh unto 25%....
I'm gonna start explaining to everyone I meet that Ben B.S. Bernutty is responsible.
I'd like Benny Boy to have a sit down with some that have been made aware.
I'm sure they'll make up a war to ship off the young men who can't find work. Better they hurt people over there and get hurt then be a burden here.
Lies-man is a joke. The only person he'll give a hard time to is Santelli. Because he doesn't want Santelli telling people the truth on air. Everyone else gets a pass.
Santelli, is a trader... his understanding of trading his market... maybe ok enough to earn a living. But anything like a total view? seriously... Santelli is the rally point?
WE ARE SO FUCKED!
from Cap'n Obvious and his mate Toll Yaso
Ben Bernanke is human filth. Simple as. I hope his masters sell him out at the end of all this, they usually do when they no longer have any more use for their puppets.
+1
bernankrupt, asshole and murderer extraordinaire, has much blood on his evil hands.....i would not want to be in his shoes on judgment day....there is much to be said for being a peon and cipher....
More QE of course adds to the ever building bull market in commodities. Don't let day to day vol ruin perspective Phase Two of the secular bull market is in full swing @ http://rosenthalcapital.com/blog/
Rachel Corey, as a young child reported that 30,000 people, mostly children, die every day from starvation. Rachel Corey, as a young woman, was killed by an Israeli bulldozer ... however that does not stop the message that the manipulation of world food supplies and prices kills people, mostly those least able to defend themselves, children.
The food riots that killed people in 50 people in Tunesia are nothing compared to what the Goldman manipulation of grain prices has caused. It is estimated that now thanks to Goldman' manipulation of grain prices as many as 50,000 people, mostly children, die of starvation every day.
Gods' work?
It's Rachel Corrie. Carry on.
http://www.youtube.com/watch?v=FyrQL-ZhMy4&feature=player_embedded
It is only a coincidence that "federal reserve bank" is an anagram for "berserk, fevered, anal".
"Lend bark fear severe"
Decided to hit an online anagram program to figure out what the anagrams might be for Timothy Geithner. So far:
Herein Mighty Tot
My Hotter Nightie
Tighter Money Hit
Anagram maker: http://wordsmith.org/anagram/
Situation reminds me of a construction crew drilling under a road, focused on the drill going into the ground facing the machine and not the direction of the drill, with no one looking behind them at the drill bit surfacing halfway across the road. Oops.
When I (at age 8) pointed it out to them, they were pretty annoyed.
Too bad Ben is focused on the wrong things.
Liesman is a freaking joke, Bernanke should be immediately arrested and tried for treason which should be a slam dunk, hell even I have his speeches on hand to prove the whole case!
Everyone saw that Vanguard is withdrawing its ETF on municipal bonds. How do we play this? Is this the next bailout?
Is this another example of the financial sector printing more money and keeping it circulating among friends? What the hell, some munis may be in trouble, but not all, I thought this was a free market.
He's beyond insane
LOL, a million shares of VXX at market just crossed.
Looks like a massive rotation out of PM stocks and into chip stocks.
Especially those that design chips for tablets.
Who would have thought that QE2 would have created a huge bubble in electronic gadgets used for social networking?
Let the jobless begin their mass purchase of crap they don't need at insanely marked up prices made by the Chinese who take more and more trade every month.
Like i said, I'm in no mood. Stay on topic.
'Social networking gadgets' in a society of people so disconnected they cant have any actual personal relationships...I looked on and just shook my head at Christmas as everyone there was sitting around the fire, talking to imaginary friends on facebook and twitter. Totally collapsed society.
That spike has all the characteristics of a wave 5 blow off top...I'm sure you know what usually happens next?
The day before QE2 was announced I was perusing the NY Fed site and discovered a report in which the Fed asked GS and others how much QE they think will be needed.
The answer they gave was 1.2 Trillion over 12 months.
I predict QE3 will be announced to start July 1, last for 6months, and be for 600 Billion.
Just like QE2.
If QE2 is priced in and the market is forward looking, it must be QE3 (unless QE2 is never ending) melting it up. If Ben wants a strong market, Ben will get one.
needs some babes Robo...
Noooooooo! n Back down AVL! Want 6.10!
Oh well, sell in the morning, and buy back afternoon worked until it didn't.
Still time tho......moving to 6.07 fer the hell of it.
I really find it hard to believe that a man in such a prominent position can be so shortsighted . Look at the equity mutual fund outflows and the volume for the S&P and DJIA . The small retail investors continue to abandon stocks and market participation has been in a steady downward trend since the 2009 lows . This " wealth effect " primarily benefits large institutional investors , you know , the ones who took excessive risks and made awful investments but recieved hundreds of billions of public funds to cover their loses because of their systemic importance ( the same ones who are taking huge commissions courtesy of the American taxpayer on POMO sales every week ) .
Anyway , Ben's myopic approach to economic revival is truly appalling . Unemployment and underemployment are still very high . Fuel and food prices are rising . Growth is sluggish and housing is still in the pits . You'd expect more from over a trillion dollars worth of asset purchases . The only thing QE is achieving is inflation , international condemnation , a rise in the national debt and huge moral hazard . And I can't emphasize enough the importance of the latter .
He's right. QE2 has contributed to the rise in the stock market. It just HASN'T contributed to PROSPERITY!
INDICT, IMPRISON The Beard.
No, No, No - I've said this before here - return him to his hometown of Dillon, SC. He is hog-tied to a back seat of a minivan with six screaming 7 year olds that rides up & down I-95, and every time they pass a South Of The Border billboard (about every 2 minutes) all six will scream to stop there. He is forced to do this 16 hours a day, 7 days a week. And has to eat the crapppy food there and get his picture taken with "Pedro".
I realize this might constitute cruel and unusual punishment but fits his crime.
PS - www.thesouthoftheborder.com
Picked up a token NEM at 56.46 in Robo's honor, cuz y'all give him/her/it so much CIT.
Ghastly sight on air
Liesman fellates Bernanke
Swallow at finish
The joke's on bernank. As soon as
anyone becomes aware a market is rigged,
they want nothing to do with it. This
is exactly what happened in Japan. Now
they just laugh at their market...it's for foreigners.
It's kinda funny. Since he lives in an
ivory tower, he expects folks to say:
"Thanks for rigging the market and
saving the world, Ben." Meanwhile,
more folks leave it every day. LOL
But...but....(sputter) I rigged the market for you
so you would do more shopping.
And feel good about how much you saved on unnecessary purchases.
IF: stock(xyz)
AND: stock(xyz) skyrockets
THEN: upload chart
ELSE: activate robotroll
RETURN
America needs to export and create more financial crappy products for idiotic foreign "investors" so they can prove there GDP can even grow more the 3 to 4%.
1) pump up asset prices with QE 1-N
2) close to breaking point (hello austerity!), liquidate said assets.
3) let the tax paying sheeple pick up the tab.
4) declare deflation a good thing
Ok folks, I find your understanding of Ben and his actions to be a bit naive. first of all never look at what he says, it's meaningless. then look at our situation what are the options. he has to allow the big banks to earn money, they are bankrupt. hence he has to cover up for the feds massive regulatory failures, the banks need enough to pay for their liabilities with law suits, and he needs inflation to shrink debt loads. this is what Qe is all about. it has nothing to do with the economy. It in fact will do the opposite to the economy as decreasing wages are eaten up by higher food and commodity prices.
So we must assume he isn't stupid enough to keep doing something that doesn't work. which means that isn't what the real purpose of the thing is. the purpose is to cover up the massive regulatory fraud that is the fed, and the banks frauds. to cover up that they are bankrupt. that is the purpose of QE.
Yes, we know he's saving the world
(the banksters) in his own mind, but
we don't want to save them. F 'em.
Fed is the "Forth Branch of Government" I say this as well.
http://cravensbrothers.com/cboutlook/
Fun, quick read.
i expect more queasing too.
Bernanke has to say what he has to say. He lies so you will go out and buy. He inflates so you can't save. I'd be surprised if QE2 is the last of it. Who's to say he can't do a lot of under the table inflating as well. The Fed excels at propaganda, censorship, false flags, and other subterfuge.
Dear Ben: What has been the effect of QE on your dual mandates of full employment and stable prices? You really don't think the people are buying what you are selling eh?
I agree with DCB's thought line. You folks calling for collapse.....do you have any frigging idea what that would be like? I agree that the Fed and corrupt politics have put us in this spot; but frankly I don't have any interest in shooting it out with my neighbors over the last can of beans. I have an 11 year old daughter and want some semblence of a future for her. To that end, Bernake is doing the right things to try and heal this thing over time. Granted, there will be some undesirable outcomes for many but he has been fairly straightforward (ok, as straightforward as a Fed chairman can be) in what he is doing. He's not lying but he's not being totally truthful either. He can't or he'd scare the bejesus out of everyone and it would all end in the shitter.
If you're rooting for collapse of our system, you need to think twice. If you don't want to participate in this Fed-engineered rally, don't....but I'm tired of hearing all this ranting and raving about it. The hyperinflation ain't gonna happen folks. There are way too many deflationary pressures. Besides, creating a couple of trillion into a 15+ trillion dollar inventory isn't exactly Weimar. At least not yet.
Sorry to bust your bubble here, but the collapse is coming -- it's a mathematical certainty. :(
Lets say he has set his goal of 3-4% GDP...how much QE will it take to get there....????
Big hat tip to TD & ZH for calling out in 09' Bernankes plan to push stocks higher. From reading ZH for a couple months now, it doesn't seem like too many folks around here listened.
We listened/read just fine, but WE REFUSE to fight with HFT robots!
What was done today on CNBC with those individuals was an attempt to calm down the markets, thats all and it backfired. Leisman didn't ask them the pertinant questions and he was told not to ask them probably. This was only to be a pep rally to let people know that nothing is wrong (even though there is foot riots everywhere and food inflation) and they are on top of it.
QE3 drumbeat begins ...
QE3 drumbeat begins ...