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Fed Damage Control Courtesy Of Elizabeth Duke (Update: And Dennis "Have My Cake And Eat It Too" Lockhart)
Apparently what the Fed thought was sufficiently well "telegraphed" to the market, was "telegraphed" only to Goldman, and maybe a few others. Here is how the Fed is now doing some serious late day damage control before Asia opens, with backtracking courtesy of Fed Board member Elizabeth Duke.
- DUKE: DON'T EXPECT THURS DECISN TO LEAD TO TIGHTER FIN CONDTNS
- DUKE: DISC WINDOW CHANGES ONLY A REVERSAL OF SPREAD REDUCTN
- DUKE: EXPECT BNKS TO USE PRIV SOURCES FOR NORML FUNDNG
- DUKE: CONTINUE TO EXPECT NO LOSS ON CREDIT TO BEAR STEARNS, AIG
- DUKE: IF HAD TO REDO, WOULD VOTE AGAIN TO MAKE LOAN TO AIG
- DUKE: PLEASED TALF WORKED, MORE PLEASED 'BECOMING UNNECESSARY'
- DUKE: ECON BY NO MEANS NEARLY AS STRONG 'AS WE'D LIKE'
- DUKE: EXPECT BNKS TO ONLY USE PRIM CRED AS BACKUP FUNDS SOURCE
- DUKE: DISC WINDOW MOVES DON'T SIGNAL MON POL OUTLOOK CHANGE
- DUKE: FED RETURNING TO NORMAL DISCOUNT OPERATIONS
- DUKE: THURS DECISN FURTHER NORMALIZN OF FED LENDING FACILITIES
What is most amazing, is that the truth bid-to-cover on her 11 statements is at most 10%.
Update: here are some musings from Dennis Lockhart on the topic of how one can have their cake and eat it too:
LOCKHART: MON POL REMAINS ACCOMMODATVE;NEEDED FOR RECOV
LOCKHART: DISC RATE HIKE NOT MEAN TIGHTENING IMMINENT
LOCKHART: STRONG Q4 GDP PERFORMANCE PROBABLY NOT SUSTAINABLE
LOCKHART: UNCERTAINTY MEANS NO IMPROVEMENT EXPECTD IN CAP SPEND
LOCKHART: COMM R-ESTATE,DEFICIT POSE UNCERTAINTIES FOR BIZ INV
LOCKHART: AT UNCERTAIN JUNCTURE; MUST WATCH INDICATRS GOING FWD
LOCKHART: HSG SECTOR IN MIXED STATE; SOME ENCOURAGING NEWS
LOCKHART: DON'T EXPECT MUCH INVENTORY EFFECT IN 2010 GDP GRWTH
LOCKHART: PREDICTS 'VERY SLOW RECOVERY' IN UNEMP MARKET
LOCKHART: FORECASTING LOWER GROWTH, MORE GRADUAL RECOVERY
LOCKHART: U.S RECOV IN 'TRANSITIONAL PHASE';POSITVE SIGNS
LOCKHART: FED FACILITIES WIND-DOWN SHOW FIN SYS STRESS ABATED
LOCKHART: THURSDAY FED ACTION REMOVAL OF FINCL CRISIS FACILITY
LOCKHART: CONFIDENT FED HAS NECESSARY TOOLS, CAPACITY TO ACT
LOCKHART: MON POL IN THE COMING YEAR 'MUST BE NIMBLE'
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American Empire -- Game Over
(China says)
All Your Bases Are Belong To Us
You Are On The Way To Destruction
You Have No Chance To Survive
Make Your Time.
See video details at www.youtube.com/watch?v=qItugh-fFgg
Hey, the Senate ignored the People,
reappointed Bernanke while the House spent all the money.
What else do we need - bread, circuses, food stamps
and Idol Lost Olympics?...
http://www.jubileeprosperity.com/
>DUKE: IF HAD TO REDO, WOULD VOTE AGAIN TO MAKE LOAN TO AIG
Blankenfein is very relieved. He knows who is going to pay his bonus in 2011.
As if rearranging the
deck chairs on the
USS Titanic not enough-
now we get PR from
the dead Fed...
the dead Fed...
I have decided that I will give my avatar to Ben Bernanke should he decide to register at ZH versus his anonymous posts.
I think he prefers to call himself "jm".
bitch, in all connotations of that word.
Would again vote for loan to AIG? Are you kidding me? Does she read the papers?
>DUKE: IF HAD TO REDO, WOULD VOTE AGAIN TO MAKE LOAN TO AIG
Is this one real? Because I thought this one was one of the joke lines that you sometimes insert in these releases.
When the principal strategy is Lie, Lie and Lie some more, you must do some "old lie" maintenance now and then. The best time to rotate the tires (I would fall in love again) is when you're in the shop for the 5,000 mile oil change (today's lies).
While ZH is hardly a representative (of general population) forum, it does seem as though the percentage of people who know it is all a lie has gone up.
Once the percentage gets to the right level, we have a Berlin wall (August 1989) moment.
July 4 would be a nice day to celebrate a real independence.
Yes ma'am, and Obama rides a skittles shitting unicorn.
Now about that oceanfront property in Iowa you guys just unloaded on me...
If this was such a routine/housekeeping non-event, why did they not just announce it at the last Fed mtg?
Something does not compute.
China getting fed up with holding soggy toilet paper!
LOCKHART: STRONG Q4 GDP PERFORMANCE PROBABLY NOT SUSTAINABLE
yeah, like not sustainable through the first and second revisions.....
DUKE: I TRIED A NEW DOUCHE AND NOW FEEL FRESH AS A DAISY
The water in the toilet swirls round and round....and then goes down
I thought some ed Fed bloke said to expect no surprises at the FED meeting (said on the day of the meeting)....
hmmm perhaps he forgot to add... expect surprises afterwards...
DUKE: WOULD STEER SHIP INTO ICEBERG AGAIN, WHAT'S THE BIG DEAL?
DUKE: EXPECT BNKS TO USE PRIV SOURCES FOR NORML FUNDNG
Thanks, I needed a good laugh.
The FED telescoped in the week of Feb 7 that their exit strategy in sopping up the excess liquidity would be to raies the interest on excess reserves rate --- which was at 0.25%.
According to a WSJ article discussing this on Feb. 7
"When the Fed is ready to tap the brakes, it plans to raise the rate paid on excess reserves, according to Fed officials in interviews and recent speeches. The higher rate would entice banks to tie up money they otherwise might lend to customers or other banks. The Fed expects such a maneuver to pull up other key short-term rates, including the federal-funds rate at which banks lend to each other overnight—long the main tool for steering the economy."
I guess someone at FED got confused and raise the wrong rate (sarcasm turned on) as the excess reserves rate has only been a tool in effectr extended to the FED since Oct. 2008.
These guys have that whole forgiveness/permission thing down, don't they?
new form of taxes for the UK... death tax may be announced
Not a joke!.... !!!
and the next version... we will keep you alive until you agree to sign here... pay up now and die quickly or we will make you die slowly
http://www.telegraph.co.uk/health/elderhealth/7230617/Row-erupts-over-Labours-secret-10pc-death-tax.html
Row erupts over Labour's 'secret 10pc death tax' The Tories have accused ministers of secretly planning a 10 per cent “death tax” to help pay for long-term care for the elderly and infirm.I will point out, they have no idea what they are doing, nor have they ever, but i guess that is what makes it fun for them?
Start working on the brakes after you drive off of the cliff, huh BS? People on the damn bus don't even know whats going on.
"Please put on your headphones and look down onto your ipaddd," said the bus driver Barry Sotero. The sheeple bent over to grab their respective ipaddds, while the bus drove over the cliff. "Please maintain your focus solely on your ipadd. Please watch as Britney Spears seduces you poor saps ("Did he just call us 'poor saps'?") with another one of her routine songs, "Think About Having Sex With Me...All of the Time." You will be made whole again 'merica. Just look at your ipadds." Someone in the back screams, "We are falling off of a cliff!" "Not to worry," says Mr. Sotero, "BS Bernanke can fix the brakes." BS swings out of a seat, he is eating a ham sandwich. "Yep, no problem, I can fix it, I taught at Princeton." Barry smiles and winks to the sheeple, "He taught at Princeton."
+111
oops! tee hee..
Hmmm....vote 8-1 in favor of no rate hike at meeting. Get Bernanke re-affirmed. Come out days later and raise rates with a 9-0 vote. Can someone tell me anything that fundamentally improved? The only reason I see the FED made this was they are deepely afraid of not being able to sell next weeks auction of T-Bonds. Anyone???? Anyone????
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