Charles Plosser Speaks On The Fed's "Exit"

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Fri, 03/25/2011 - 12:24 | 1099949 entendance
entendance's picture

<..there are no Bears left in any trade except for dollar Bears...>

Fri, 03/25/2011 - 12:42 | 1100052 Harlequin001
Harlequin001's picture

Either Plosser doesn't know what he's doing or he's bullshitting.

I go for bullshitting...

We will have QE 3, 4 & 5 and more and absolutely zero hope of raising rates to any meaningful degree. That will be done for him by the market.

Then, enter the sovereign funds...

Fri, 03/25/2011 - 13:15 | 1100203 G. Marx
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Here, let me translate this missive:

"These aren't the droids you're looking for. Move along."

Fri, 03/25/2011 - 13:51 | 1100360 LowProfile
LowProfile's picture

...Should the Fed indeed proceed to do this, the market will prolapse.

...Like a rectum.


Fri, 03/25/2011 - 16:05 | 1100999 MarketTruth
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If the Fed raises rates their own balance sheets collapses due to the inability (legally) to cover their ASSets/liabilities.

Fri, 03/25/2011 - 13:18 | 1100205 B9K9
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Time: November, 1812

Place: Moscow

Scene: Napoleon addresses the troops, assuring them that France is "there to win".

Next day: Napoleon and general staff secretly & safely flee Russia while the Grande Armee subsequently suffers losses numbering over 300,000 casualties.

Moral of the lesson: Remember kids, in a plane crash, it's not only important for you to make it to the exit in time, it's also critical to make sure others are blocked or otherwise prevented from doing the same so as to increase your chances.

These kinds of rear-guard announcements are designed to lull the sheep. Don't be one of those caught off guard. Read the script - this drama has played out endless time before. Just because you don't control the game doesn't mean you can't play along @ home.

Learn it. Know it. Live it.

Fri, 03/25/2011 - 13:18 | 1100209 6 String
6 String's picture

He's bullshitting. All the Federal Reserve Monkeys are starting to drone on with the same fucking drumbeat.

Plosser, Lockhart, Fisher.....and, yes, EVEN BERNANK.

This is the Federal Reserve's hail mary at trying to maintain any ounce of integrity, folks. They are ALL saying there will be no QE 3. All of them.

....But why? Well, every Fed member knows, and Bernanke has tipped his hand how many times on this?, that Congress' out of control spending--of course thanks in large part to Greenspan, Paulson, Bernanke, etc.--will have to be fucking monetized.

And therefore, when they do announce QE3, the Federal Reserve will let themselves off the hook and being able to fully blame fiscal policy on why the great transfer of wealth continues, almost unabated.

Trust me, folks. This is what is happening.

Fri, 03/25/2011 - 17:10 | 1101199 MrBoompi
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I do think they might give us a taste of what life is like without QE. Then after the crash we'll all be begging for it like a crack whore.

Fri, 03/25/2011 - 23:10 | 1102101 bluebare
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Yes. STFD.  BTFD.  Do the double dip.

Fri, 03/25/2011 - 15:40 | 1100921 Djirk
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Plosser has been one of the few BOGs who is against the current freebasing of the US dollar. This seems like a reasonable plan, but I doubt the rest of the BO(o)Gers are behind him? Head fake?

Fri, 03/25/2011 - 12:43 | 1100075 I Am The Unknow...
I Am The Unknown Comic's picture

hmmm what a you posted that the dollar began spiking. 

Speaking of coincidences: how timely of Plosser to release this when gold & silver are at highs with expiry on Monday.  What a puppet in isn't it obvious whose hand is up his ass moving his mouth? 

Fri, 03/25/2011 - 13:03 | 1100152 CPL
CPL's picture

The resource pile called Canada is going for an election against the minority government in power right now.  Should be announced in the hour or so.

Fri, 03/25/2011 - 13:03 | 1100158 CPL
CPL's picture

Rectal Prolapses for ALL!!!

Fri, 03/25/2011 - 13:13 | 1100188 oh_bama
oh_bama's picture

You guys can certainly talk about "exit" but remember:



Fri, 03/25/2011 - 12:27 | 1099956 pendragon
pendragon's picture

taxpayer loss will be bigger hiking rates prior to asset sales but at lease some common sense

Fri, 03/25/2011 - 12:47 | 1100100 Harlequin001
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pure fantasy...

Fri, 03/25/2011 - 12:25 | 1099958 Gubbmint Cheese
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market calling plosser's weak hand.

"I call you, and raise.."

Fri, 03/25/2011 - 12:35 | 1100020 Cash_is_Trash
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He sure "says" a lot.

Come on Benny, make our notes worthless!

Fri, 03/25/2011 - 12:40 | 1100053 assumptionblindness
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Absolutely true.  The markets don't give any credibility whatsoever to the Fed talking-down QE3 expectations. 

The Fed is boxed into a corner and the markets know it..."to infinity and beyond," shouted Ben to the printer operators.  I expect more "speeches" like Plosser's from other Fed Govenors over the next couple of months before the inevitable QE3 is announced.

Fri, 03/25/2011 - 13:13 | 1100191 1fortheroad
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 Bernake, ROFLMAO

Fri, 03/25/2011 - 12:25 | 1099959 Ray1968
Ray1968's picture

If QE EVER stops, this market is toast!

Fri, 03/25/2011 - 12:32 | 1099996 TradingJoe
TradingJoe's picture

This "market" is toast anyways!!!

Fri, 03/25/2011 - 12:39 | 1100039 clymer
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Funny how they talk of rate increases and spending cuts, while lobbing tomahawks by the hundreds in a new war (yes war - not "kinetic exercise")


We've always been at war with east Asia.

We've never been at war with east Asia.

Fri, 03/25/2011 - 12:50 | 1100108 augie
augie's picture


peace is war,

war is peace.

Fri, 03/25/2011 - 14:12 | 1100477 Republican Lackey
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It's about saving the Fed not the market. PM's are going down. Don't bet against the Fed.

Fri, 03/25/2011 - 12:28 | 1099960 downwiththebanks
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Speaking of the Fed and exits:  goodbye Thomas Hoenig.

Fri, 03/25/2011 - 12:40 | 1100047 Cash_is_Trash
Cash_is_Trash's picture

Start paddling bc here comes the DIP!

Fri, 03/25/2011 - 12:27 | 1099962 firstdivision
firstdivision's picture

Currency in circulation went up a bit

Fri, 03/25/2011 - 12:28 | 1099967 unwashedmass
unwashedmass's picture


they keep going we have old people eating cat food by the millions

they stop now, they destroy what little is left of people's retirement savings nationwide....

so, which batch of peasants is going to be decimated?

Fri, 03/25/2011 - 12:29 | 1099979 SheepDog-One
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Fri, 03/25/2011 - 12:38 | 1100029 ronin12
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cat food is getting expensive

Fri, 03/25/2011 - 13:39 | 1100294 Zero Govt
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Benny the Bean hasn't seen any economic disaster coming to date, Benny is as economically blind as a Bat (with ear muffs on!) just imagine what his 'Fed Plan' is going to look like... Mr McGoo stars in Texas Chainsaw Massacre, he hasn't a chance of being a hero coz his track record is being a zero!!

Fri, 03/25/2011 - 12:28 | 1099968 pendragon
pendragon's picture

at least we have one guy not voting for QE3....

Fri, 03/25/2011 - 12:42 | 1100063 nope-1004
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I doubt it.  He's just out of the loop thus far and will be sat down and told straight up by Benocide:

"Listen, if we end QE, we're on the hook for all those retirement obligations.  We also will kill global confidence in our markets and be unable to control foreign governments if they drop us as a reserve currency.  So let's keep this QE thing going and what I'll do is siphon oodles of taxpayer printed toilet paper to JPM, GS, and HSBC so they can hold PM's at bay thereby fooling the sheeple into believing that there is no inflation."

Fri, 03/25/2011 - 12:26 | 1099969 Cleanclog
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"I recognize that any strategy has its disadvantages and this one, no doubt, will attract its share of critics. Some will say that we cannot shrink the balance sheet this rapidly without disrupting markets."

Go ahead and disrupt the markets.  It certainly wasn't a concern when y'all were expanding the Fed's balance sheet with extraordinary size and speed.

Fri, 03/25/2011 - 12:28 | 1099970 buzzsaw99
buzzsaw99's picture

Another lying joo banker. :yawn:

Fri, 03/25/2011 - 12:29 | 1099975 subqtaneous
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The residential and commercial real estate sectors remain weak but appear to have stabilized.


"Dark side" indeed.



Fri, 03/25/2011 - 12:30 | 1099991 SheepDog-One
SheepDog-One's picture

The Titanic also eventually 'stabilized'...didnt have much upside from then on though.

Fri, 03/25/2011 - 12:31 | 1099993 Boilermaker
Boilermaker's picture

What?  There on a straight up moon shot.  Trust me, I get cornholed repeatedly as every sell of is met with a violent shove back up.  There are buyers galore, at any price, for the steaming pyramids of shit that are REITs.  SPG has some corn chunks in it so it commands a higher premium, naturally.

Fri, 03/25/2011 - 12:29 | 1099976 Boilermaker
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Fri, 03/25/2011 - 12:29 | 1099982 ExploitTheMarket
ExploitTheMarket's picture

And the EUR/USD nice of Goldman Sucks to tell their clients to go long. Goldman is a great contrarian indicator!

Fri, 03/25/2011 - 12:51 | 1100118 iota
iota's picture

Goldman FX reccs are the ultimate contrarian indicator.

Fri, 03/25/2011 - 12:29 | 1099986 firstdivision
firstdivision's picture

Wow, look at the lolar-dollar go.  Japan is sure happy.

Fri, 03/25/2011 - 12:31 | 1099987 RobotTrader
RobotTrader's picture

Looks like a ferocious rotation out of gold stocks and into bank stocks

NEM, AEM, KGC getting bushwhacked again, while anxious mo-mo dippers are piling into America's "best of the best":  BBT, WFC, STI, etc...

Amazing, faith in paper is restored once again.

Fri, 03/25/2011 - 12:31 | 1099992 SheepDog-One
SheepDog-One's picture

And theyre all going to die soon.

Fri, 03/25/2011 - 12:34 | 1100001 Careless Whisper
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apparently banks rule:

Wells Fargo Plane Linked To CIA Mission In Libya


Fri, 03/25/2011 - 12:36 | 1100021 SheepDog-One
SheepDog-One's picture

The bankers start all the wars.

Fri, 03/25/2011 - 12:39 | 1100036 Cash_is_Trash
Cash_is_Trash's picture

Politicians do too, with funding by banks and barons.

Fri, 03/25/2011 - 12:55 | 1100105 plocequ1
plocequ1's picture

Paper is ok by me. My Liquor store only accepts Paper currency with pictures of Washington, Lincoln and Jackson. Not Max Keiser

Fri, 03/25/2011 - 12:56 | 1100129 SheepDog-One
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My liquor store accepts silver and gold.

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