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Inkmaster of Zero Hedge, John Redmann explores the problem of post-liquidity clean-up.
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waiting for the followup: the Swap-Chop.
+1000 LOL
How about the Swappie?
Just to funny! :)
They should make small video clips af these cartoons :)
I see it more like draining a septic tank.
From Wikipedia :
Periodic preventive maintenance is required to remove the irreducible solids which settle and gradually fill the tank, reducing its efficiency. In most jurisdictions this maintenance is required by law, yet often not enforced. Those who ignore the requirement will eventually be faced with extremely costly repairs when solids escape the tank and destroy the clarified liquid effluent disposal means. A properly maintained system, on the other hand, can last for decades and possibly a lifetime.
You get the idea. Change the nouns as you like.
How does the Fed know what's the excess and what's the right level of liquidity? It DOESN'T. It is SCARED of the rising Gold price and it knows that it can't drain ANY liquidity from the system without the entire economy (or whatever's left of it) IMPLODING in short order. That 's why it's trying to bluff it's way out by jawboning. Nice try Ben. Here's your grade: FAIL.
I would argue that there is no excess liquidity. Most of the Fed's purchases have been MBS's vis a vis garbage. So, the Fed has basically exchanged bad paper for good paper and the banks are back where they started.
Gekko is right: Ben is an abysmal failure. Have you read the story about the Pied Piper of Hamlin? Well, the Piper must be paid, whether we like it or not.
These so-called "academics" and sages, have missed the one crucial law that can not be escaped, at least in this solar system: nothing comes from nothing, and nothing can simply vanish to nothing.
It can't be hidden for long, the clock is ticking......
Ben does what he's told. The real money masters put these academic, economist types, who can talk the talk on the frontline but it's bankers in midtown Manhattan who really call the shots.
Asset bubbles cannot be artificially sustained indefinitely. With wages declining and double digit unemployment, reality will eventually smack Ben & Co. in the face. The US economy is (was) largely driven by three forces: Construction, auto manufacturing and pulled-forward demand (debt). That's all anyone needs to know to understand Bernanke will fail.
Acording to a poster on another thread, Maiden Lane in, I think San Fran, was the red light district.
The Fed sucks but it won't be able to that well. They put out the fire they started and now they want us to suck it up.
I see Ben is holding gold.
Three generations is not enough. The fed is indeed a sham.
America is Fed up.
That was my humble contribution.Don't know if I was signed in.
I thought it ironic that they chose that name and just wanted to share.
cheers
Maybe we both posted that info independently.
Or maybe you are both the same poster and you slipped up.
Dun, dun, dun, duuuuuuuun.
http://johngaltfla.com/blog3/
it is fictional story.. or it isnt?
Great story, would be a better movie than 2012.
Gawd I hate those sham-wow commercials. Bloomberg loses me every time they show one. Well, at least for a few minutes.
Get it while it's hot. Only 10 easy payments of (whatever is in your bank account) x (Taylor Rule) !
Consumers buy it, sure Dennis Kneale could come back to CNBC and push it for the holidays.
When do they ever mop up the liquidity? All the graphs of the M1,M2,M3 go up, up and up. Sure they turn off the taps on occasion but the spillage is left on the table. What am I missing here? or is mopping up the liquidity akin to ...and they all lived happily ever after.
Wow this makes me realize how much we lost with Billy Mays...think of how much better the world would be if he were Fed Chairman! At least that man could sell a product of dubious quality.
He was a hack compared to Vince from Shamwow. Vince could sell ice to Eskimos.
We should all try to be more like Vince from Shamwow.
favorite line from the Slap-Chop commercial:
"You're gonna love my nuts."
Davos,
I miss Dennis Kneale, he was wrong but at least seemed to believe what he was saying! Get rid of Cramer (I refrain from comment on him) and bring Kneale back!
DavidC
I don't pay attention to religious zealots simply because they believe in what they are spewing either. Point taken though.. Cramer is a slime ball.
Im suing on behalf of Zimbabwe...
HA! Awesome!
Too funny - Second ShamWow® reference to financials in 24 hours. Glenn Beck was doing an awesome reference to Obama being like the ShamWow sales pitch when discussing the "deficit neutral" Health Care where they cut before the next scene and wipe up all the mess under the carpet.
"association is perfect! the privately held federal reserve is a SHAM!
and the fedwow is sucking all the money printed for the blackholebank heist, never to be seen again--only to be paid by the future generations." she said with great sorrow.
But wait! That's not all!
If you don't call in the next three generations you will receive a cyclical repeat!
*Paid for in 3 easy generations*
If every man woman and child in the US gave every nickel they wouldn't scratch the surface in ten generations! I will gladly give my property, my liberty and my life if necessary in order that my children would not have to face a most certain future suffering the consequences of decisions for which they had no part. Stealing from a man while you look him in the eyes is wrong. Stealing from a man long before God breaths life into his soul is borne in such callous perfect hatred my mind cannot bear it description.
Stealing from a man long before God breaths life into his soul is borne in such callous perfect hatred my mind cannot bear it description.
Poetic rage. Beautiful and hard hitting.
Agreed. The best writing springs forth when one is fully present with his or her passion.