This page has been archived and commenting is disabled.
Here It Comes: Bernanke Says Fed Could Introduce "Some Special Lending Programs" In Case Of European Debt Crisis Spillover
Actually, the quote was in the "unlikley" case of spillover from European debt crisis. Even the Chairmesiter has a sense of humor. But the meaning is clear. We are on the verge: a few more negative data points (guaranteed), and/or just a month before all of PIIGSy Europe gets back from vacation (around August 15), realizes it still has no pensions, bonuses and 14th monthly salary, and proceeds to storm various parliaments, and the Fed will be back, baby.
»
- 7826 reads
- Printer-friendly version
- Send to friend
- advertisements -
Thanks to the fed we are living in a virtual Utopia.
Better a utopia than no utopia
Fuck utopia, to desire utopia is to deny your humanity and nature's law.
Amen brother, this whole mess is predicated on the pursuit of germinating pride and narcissim....
Knock yourself out! Better YOU-topia than ME-and-MINE-topia.
You can have my share of the bliss...
Quick, lend me another billion, will ya? Life without credit would be sad indeed.
http://www.youtube.com/watch?v=REfDCPhPQQ4
That dudes been stealing conveyer belts from walmart.
I'm still digesting "unusually uncertain"
Not "funny, like, HA, HA" but "funny like queer."
Didn't catch that - who are you quoting?
I'm still waiting for "kinder & gentler"
Lend to who and on what terms? How about a loan Sam?
no choice but to print.
So the market has made the decision that QE2 is a good thing. Well that settles that argument.
Fiat.....bitches!
Yep, because unlike gold, you can eat fiat currency.
Sure there's probably some good fiber in there.
Every time I eat Fed Fiat, the security strip embedded within the linen comes out the back side fully intact. Nothing like a colon flush using fiat.
aaaaaah!
The Fed has assured me that as long as I can turn in the security strip, my Fed Fiat will be replaced by my local bank. Fiber and fiat replacement. What a deal. Thought digging out the security strip can get a bit messy. :>)
Uhhhg. Do NOT EAT that! You have NO IDEA where it's been!
What happened in Vegas stayed in Vegas.
Vegas? Huh? I heard fiat was Vegan. And since it does come from a money tree it is registered as a Fruit. Life sucks though because although it has plenty of fiber (good!) it has few calories and thus you have to rely on its purchase power to bring home a few bananas.
I usually like to get the fiber value once or twice through the canal and then take it over to Whole Foods and exchange it for a few bananas.
http://www.youtube.com/watch?v=lWohdwiLFbI
The doelarrs, they went to Vegas.
Somebody has to try it for good of future generations, wonder what is energy content of that stuff?
Hah, purging your personal debt is never a bad thing.
And that's definitely a value-added manufacturing process - many, many good nutrients that you're returning as fertilizer to the system!
Can I have mine on a bun (and served up by these two chicks here)?
http://blog.peta.org/archives/Playmates_Hot_Dog.jpg
Lettuce
Beware of PETA chicks, if you can even call them that.
Other than the "peta" in the link, I don't see anything in the photo indicating the photo contains peta chicks other than the lettuce decorations on the outfits. Unless, of course, that hot dog is meat free.
I think it was sarcasm. But what do I know? I like the one on the right BTW. :>)
Productivity is just going to hell here.
+1 lol
Benanke's mouth open? check. SDS? check.
More liquidity does not mean more jobs. The FED will fail to restore full employment via increased "special lending." Rather, they will set the stage for inflation down the road, after several T have been poured down the debt black hole. The money being paid to creditors via FED/Treasury programs will not be rolled over into new debt issuance, but will chase commodities in preparation for a debt collapse. At that point, interest rates will skyrocket with prices, and it will be game over.
100% with you there. This is a solvency crisis and not a liquidity crisis. The Fed has been working hard to simultaneously take overpriced assets onto its books (ultimately to absorb the loss) and at the same time release more liquidity into the system as a replacement... at this point the logic fails me somewhat as to how that actually works to improve things in fiat hope and change land.
We are making up the difference between actual market value (lower) and historical value (higher) through the issuance of free money to the banks... instead of letting the assets drop to market value. I guess one assumption is that the banks have the right to all assets so they should get all the free money.... something is missing here.... can't put my finger on it. Oh yeah, there is no compensatory value creation and no mechanism since the banks do not create value through labor, but they get all the money.
This should be a surprise to no one. The questions is, how far will this take the markets? Last time it took us to 1250 SPX. Now with earnings from some major bellwethers beating and raising into full year, we could have the makings of another strong run - just like last year. Same time same channel.
I warned on here and elsewhere that the head & shoulders formation was very similar to last year at almost the exact time. My feeling was, it would fail like last year and take us higher. Well, here we go.
Well Harry, with a direct line of credit from the President's Working Group on Financial Markets, and making up 20% of the NASDAQ, AAPL should be fine. It'll be just fine.
Well, this or BS and Co. are so busy fighting the Algo Machines from Hell they lose their shorts.
The June quarter was going to be a very good one for technology companies. Results have been good, and guidance has been strong. Take a look at Xilinx, Netgear, Linear Tech, Qualcomm, AT&T, etc. -- all gave very good guidance yesterday. See what these guys said about European demand.
My company's vendors in China/Taiwan/Korea remain at our near capacity and quote longer than typical lead times. At the same time, these same vendors are worried about a looming correction and are reluctant to increase cap ex.
Personally I do expect at the minimum a slow down in growth now that inventory replenishment has run its course, maybe even a correction, but the "wall of worry" out there could help the growth continue for a couple more quarters.
I am not down on the tech sector, just Aapl.
Cisco's about ready to rewire the whole globa! Once people are not driving everywhere and all the time, we will have to work from home via video conference. Wait for it.
I agree with you on AAPL. For the first time Apple is seeing REAL competition in the smartphone market. Also, they are making PR blunders. And, the kiss of death, the coolness factor is starting to wane somewhat. At best, AAPL stock remains stagnate at these levels. At worst, a test of the 200 dma.
Watch out for the coming wave of Android phones from Asia. The market is clamoring for low cost smartphones (price to carrier ~$100) and they are coming.
When iPhone shows up at Verizon, and all the latest Android phones are at AT&T and T-Mobile, the "specialness" of the iPhone begins to wear off. Subsidies on the iPhone will drop, iPhone price to the consumer will rise, Android continues to take share.
Apple could still do alright for a while; the guy who really gets hurt bad is Nokia.
Who cares about earnings? Has anybody analyzed where those earnings coming from? They will not help America, companies will invest money in growing markets not here, you can enjoy the moment, those co's are nominally american by the name only, do they pay a lot of taxes in US? Manufacturing and sales are somewhere else, but at least you have their head offices here.
Why junk Harry for calling out that which is likely to be true? Isn't it getting fairly clear the PTB will not allow the equity indexes to fall very far, at least not now? These earnings beats, set up over reduced estimates, are exactly what the doctor ordered for the "no double dip" (and I ain't talking about chips and onion dip here) crowd which is still a very crowded party, even if definitely intoxicated and showing signs of getting nasty if the booze gets cut off. The street three card monte game is in full swing, and shows no signs of abating - as with any bunch of drunken fools dead set on partying until the keg is floating, just steer clear.
Well said. I've been very bearish on the markets since May and, even with the ratcheted down earnings expectations, didn't think we'd get "stronger" guidance into year's end. It does throw a wrench in the double dip scenario.
Eventually, the game gets played out as you said but we could see another significant rally into year's end again unless some horrible news takes us down. The table seems to have been definitely set. Whether I want to eat at it is another question altogether. Maybe some quick trades but nothing long term.
"Even the Chairmesiter has a sense of humor."
He is just being cute.
"Europe gets back from vacation (around August 15), realizes it still has no pensions, bonuses and 14th monthly salary, and proceeds to storm various parliaments..."
Does this mean the sequal will be "better"? Popcorn!
Excellent. I need a certain commodity to stay high through September. Good thing it's an election year.
That's a long time to stay high, what "commodity" are you using?
Hah, yeah point taken. One related to the question - if the US economy fell in the forest, would it make any noise, if anyone other than the Fed was there to listen?
OLD FAITHFUL
http://williambanzai7.blogspot.com/2010/07/wonders-of-world-of-fraud-old...
Solving the problem of too much debt - by lending more! Brilliant!
Time to learn how to enjoy sustenance farming. :(
Work produces money. Money does not produce work.
absolutely correct. amazing how few people see it that way.
"unlikley" case? I thought Tim Geithner's "stress test" once and for all solved the european debt crisis? And now Ben is saying that there's still a posiibility of one?
Sick of this Fed policies. Is it really this bad to take our medicine and bring the bad debt out into the open?
It is mathematically impossible to continue doing what they are doing. We are scraping the stratosphere for gods sake...when the next QE comes it is going to go to the ionosphere and out.
Ben: Don't *bleeping* die on me S&P!
http://www.youtube.com/watch?v=cfN8OrCPZvg
You all beat me up for it.....but I will say it again.
Global day of Jubilee on the way. Debt freedom for nations, total debt enslavement of the human race.
I say bring it on. Let the bankrupted governments try and tell the people that only the people owe the monie, and that the governments will pay the people next to nothing so for them to make payments. It will be laughed off in some places, and riotsa will ensue in others. Let there be truth!
If the Government default on their debts, that should bring the banks that loaned them money down with them, so personal debt would go as well.
Ben, was talking about swaps. Which is not unexpected.
The issue for Ben is not the availability of USD but the global strain on the market for Sovereign debt. This "contagion" comes in two forms; the actual capacity of foreign debt buyers and a growing mistrust in sovereign debt as an investment. A failed auction in Germany, will at some point, reduce momentum in US Treasury buyers.
Ben is worried about a fundamental loss in confidence in fiat money based sovereign debt.
Mark Beck
Indeed. But the swap lines were announced back in May, but to date there has been no draw on those lines -- why?
I disagree on failed auction Germany reducing momentum in US Treasuries -- it will fuel it.
If Europe falters, look for qualitative easing. A bring down in total Treasuries/Agencies on Fed balance sheet, replaced by FX swaps, with total size of the Fed balance sheet staying constant.
My totally uninformed speculation is there is some quid pro quo tied to the FX swap line, and the Euro nations want to try to solve this problem themselves rather than run to the Fed. And while there is a legitimate debate to be had between the efficacy of austerity vs. QE as a way out of the Euro mess (not to mention the US mess), QE is probably the more politically tolerable path (ex Germany), if not the lesser of evils.
The swap question is interesting. Perhaps not an FX strategy from ECB, but an offer to the ability to obtain dollars. I would be interested in the terms for collateral, and the rates for the swaps.
---------
In the short term, based on current rates, obviously US Treasury auctions are not in jeopardy.
I was looking more long term for stress on US issuance. A transition could be apparent after FED reserves are appreciably reduced. The FED is trying to anticipate worldwide effects of deflation, in relation to the availability of credit and the trends in corporate investment.
Mark Beck
Bernank-ster: Who re-nominated and who re-confirmed that moronic bald fuck?
(Note to CD: Yes admitted ad hominem attack...)
If you find any of them... remember to vote their sorry asses out en masse and to the curb come November...