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Fed Damage Control Courtesy Of Elizabeth Duke (Update: And Dennis "Have My Cake And Eat It Too" Lockhart)

Tyler Durden's picture





 

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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Thu, 02/18/2010 - 19:34 | Link to Comment strike for retu...
strike for return to reality's picture

American Empire -- Game Over

Thu, 02/18/2010 - 20:07 | Link to Comment MarketTruth
MarketTruth's picture

(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

Thu, 02/18/2010 - 20:59 | Link to Comment ATG
ATG's picture

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/

Thu, 02/18/2010 - 22:41 | Link to Comment strike for retu...
strike for return to reality's picture

>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.

Thu, 02/18/2010 - 19:34 | Link to Comment ATG
ATG's picture

As if rearranging the

deck chairs on the

USS Titanic not enough-

now we get PR from

the dead Fed...

Thu, 02/18/2010 - 19:52 | Link to Comment deadhead
deadhead's picture

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.

Thu, 02/18/2010 - 19:54 | Link to Comment strike for retu...
strike for return to reality's picture

I think he prefers to call himself "jm".

Thu, 02/18/2010 - 19:34 | Link to Comment sysin3
sysin3's picture

bitch, in all connotations of that word.

Thu, 02/18/2010 - 19:44 | Link to Comment Anonymous
Thu, 02/18/2010 - 19:53 | Link to Comment Anonymous
Thu, 02/18/2010 - 20:37 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

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).

Thu, 02/18/2010 - 21:14 | Link to Comment strike for retu...
strike for return to reality's picture

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.

Thu, 02/18/2010 - 19:54 | Link to Comment jdrose1985
jdrose1985's picture

Yes ma'am, and Obama rides a skittles shitting unicorn.

Now about that oceanfront property in Iowa you guys just unloaded on me...

Thu, 02/18/2010 - 20:03 | Link to Comment Fritz
Fritz's picture

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.

 

Thu, 02/18/2010 - 20:33 | Link to Comment Racer
Racer's picture

China getting fed up with holding soggy toilet paper!

Thu, 02/18/2010 - 20:07 | Link to Comment deadhead
deadhead's picture

LOCKHART: STRONG Q4 GDP PERFORMANCE PROBABLY NOT SUSTAINABLE

yeah, like not sustainable through the first and second revisions.....

Thu, 02/18/2010 - 20:12 | Link to Comment buzzsaw99
buzzsaw99's picture

DUKE: I TRIED A NEW DOUCHE AND NOW FEEL FRESH AS A DAISY

Thu, 02/18/2010 - 20:25 | Link to Comment glenlloyd
glenlloyd's picture

The water in the toilet swirls round and round....and then goes down

Thu, 02/18/2010 - 20:32 | Link to Comment Racer
Racer's picture

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...

Thu, 02/18/2010 - 20:51 | Link to Comment Anonymous
Thu, 02/18/2010 - 20:52 | Link to Comment Anonymous
Thu, 02/18/2010 - 20:59 | Link to Comment Anonymous
Thu, 02/18/2010 - 21:00 | Link to Comment Postal
Postal's picture

These guys have that whole forgiveness/permission thing down, don't they?

Thu, 02/18/2010 - 21:11 | Link to Comment Racer
Racer's picture

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.

 

Thu, 02/18/2010 - 22:32 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

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."

Thu, 02/18/2010 - 23:03 | Link to Comment jdrose1985
jdrose1985's picture

+111

Thu, 02/18/2010 - 23:49 | Link to Comment BlackBeard
BlackBeard's picture

oops! tee hee..

Fri, 02/19/2010 - 11:06 | Link to Comment curbyourrisk
curbyourrisk's picture

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????

Mon, 04/19/2010 - 08:14 | Link to Comment Tom123456
Tom123456's picture

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Mon, 04/19/2010 - 08:15 | Link to Comment Tom123456
Tom123456's picture

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