Here It Comes: Bernanke Says Fed Could Introduce "Some Special Lending Programs" In Case Of European Debt Crisis Spillover

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Thu, 07/22/2010 - 11:37 | 483600 uno
uno's picture

Thanks to the fed we are living in a virtual Utopia.

Thu, 07/22/2010 - 11:44 | 483620 whereismyorange
whereismyorange's picture

Better a utopia than no utopia

Thu, 07/22/2010 - 11:48 | 483630 Ragnarok
Ragnarok's picture

Fuck utopia, to desire utopia is to deny your humanity and nature's law.

Thu, 07/22/2010 - 12:05 | 483698 Blues Traveler
Blues Traveler's picture

Amen brother, this whole mess is predicated on the pursuit of germinating pride and narcissim....

Thu, 07/22/2010 - 11:52 | 483654 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Better a utopia than no utopia

Knock yourself out!  Better YOU-topia than ME-and-MINE-topia. 

You can have my share of the bliss...

Thu, 07/22/2010 - 14:02 | 483981 Noah Vail
Noah Vail's picture

Quick, lend me another billion, will ya? Life without credit would be sad indeed.

Thu, 07/22/2010 - 12:09 | 483703 Mr Lennon Hendrix
Mr Lennon Hendrix's picture
Jamiroquai - Virtual Insanity:

Thu, 07/22/2010 - 16:54 | 484360 Hephasteus
Hephasteus's picture

That dudes been stealing conveyer belts from walmart.

Thu, 07/22/2010 - 11:38 | 483606 Village Idiot
Village Idiot's picture

I'm still digesting "unusually uncertain"

Thu, 07/22/2010 - 11:53 | 483658 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Not "funny, like, HA, HA" but "funny like queer."

Thu, 07/22/2010 - 13:42 | 483943 Village Idiot
Village Idiot's picture

Not "funny, like, HA, HA" but "funny like queer."


Didn't catch that - who are you quoting?

Thu, 07/22/2010 - 14:44 | 484063 FASB 666
FASB 666's picture

I'm still waiting for "kinder & gentler"

Thu, 07/22/2010 - 11:39 | 483607 Hondo
Hondo's picture

Lend to who and on what terms?  How about a loan Sam?

Thu, 07/22/2010 - 11:39 | 483608 breezer1
breezer1's picture

no choice but to print.

Thu, 07/22/2010 - 11:40 | 483609 Ragnarok
Ragnarok's picture

So the market has made the decision that QE2 is a good thing.  Well that settles that argument.

Thu, 07/22/2010 - 11:41 | 483612 Cognitive Dissonance
Cognitive Dissonance's picture


Thu, 07/22/2010 - 11:44 | 483619 EscapeKey
EscapeKey's picture

Yep, because unlike gold, you can eat fiat currency.

Thu, 07/22/2010 - 11:48 | 483635 DarkAgeAhead
DarkAgeAhead's picture

Sure there's probably some good fiber in there.

Thu, 07/22/2010 - 11:54 | 483645 Cognitive Dissonance
Cognitive Dissonance's picture

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.


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. :>)

Thu, 07/22/2010 - 11:55 | 483664 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Uhhhg.  Do NOT EAT that!  You have NO IDEA where it's been!

Thu, 07/22/2010 - 11:57 | 483668 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

What happened in Vegas stayed in Vegas.

Thu, 07/22/2010 - 12:10 | 483704 LeBalance
LeBalance's picture

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.

Thu, 07/22/2010 - 12:16 | 483732 Cognitive Dissonance
Cognitive Dissonance's picture

There's a fruit store on our street
It's run by a Greek
And he keeps good things to eat But you should hear him speak!
When you ask him anything, he never answers "no"
He just "yes"es you to death, and as he takes your dough He tells you
"Yes, we have no bananas
We have-a no bananas today
We've string beans, and onions
Cabashes, and scallions,
And all sorts of fruit and say
We have an old fashioned tomato
A Long Island potato But yes, we have no bananas
We have no bananas today

Thu, 07/22/2010 - 12:46 | 483806 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The doelarrs, they went to Vegas. 

Thu, 07/22/2010 - 12:10 | 483706 Eally Ucked
Eally Ucked's picture

Somebody has to try it for good of future generations, wonder what is energy content of that stuff?

Thu, 07/22/2010 - 12:51 | 483819 DarkAgeAhead
DarkAgeAhead's picture

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!

Thu, 07/22/2010 - 12:16 | 483726 francis_sawyer
francis_sawyer's picture

Can I have mine on a bun (and served up by these two chicks here)?

Thu, 07/22/2010 - 12:18 | 483740 Cognitive Dissonance
Cognitive Dissonance's picture


Thu, 07/22/2010 - 13:03 | 483822 DarkAgeAhead
DarkAgeAhead's picture

Beware of PETA chicks, if you can even call them that.

Thu, 07/22/2010 - 15:04 | 484101 Cognitive Dissonance
Cognitive Dissonance's picture

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. :>)

Thu, 07/22/2010 - 14:06 | 483991 Noah Vail
Noah Vail's picture

Productivity is just going to hell here.

Thu, 07/22/2010 - 13:09 | 483866 nevadan
nevadan's picture

+1   lol

Thu, 07/22/2010 - 11:45 | 483623 InconvenientCou...
InconvenientCounterParty's picture

Benanke's mouth open? check. SDS? check.

Thu, 07/22/2010 - 11:46 | 483627 brushfire
brushfire's picture

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.

Thu, 07/22/2010 - 12:01 | 483683 Bartanist
Bartanist's picture

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.

Thu, 07/22/2010 - 11:47 | 483633 HarryWanger
HarryWanger's picture

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.

Thu, 07/22/2010 - 11:56 | 483643 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

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.

Thu, 07/22/2010 - 12:12 | 483711 Bonesetter Brown
Bonesetter Brown's picture

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.

Thu, 07/22/2010 - 12:45 | 483802 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

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.

Thu, 07/22/2010 - 14:06 | 483993 HarryWanger
HarryWanger's picture

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.

Thu, 07/22/2010 - 15:01 | 484092 Bonesetter Brown
Bonesetter Brown's picture

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.

Thu, 07/22/2010 - 12:20 | 483744 Eally Ucked
Eally Ucked's picture

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.

Thu, 07/22/2010 - 13:45 | 483953 Ned Zeppelin
Ned Zeppelin's picture

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.

Thu, 07/22/2010 - 14:04 | 483989 HarryWanger
HarryWanger's picture

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.

Thu, 07/22/2010 - 11:48 | 483636 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

"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!

Thu, 07/22/2010 - 11:49 | 483642 DarkAgeAhead
DarkAgeAhead's picture

Excellent.  I need a certain commodity to stay high through September.  Good thing it's an election year.

Thu, 07/22/2010 - 12:13 | 483715 LeBalance
LeBalance's picture

That's a long time to stay high, what "commodity" are you using?

Thu, 07/22/2010 - 12:54 | 483826 DarkAgeAhead
DarkAgeAhead's picture

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?

Thu, 07/22/2010 - 11:53 | 483657 pyite
pyite's picture

Solving the problem of too much debt - by lending more!  Brilliant!

Time to learn how to enjoy sustenance farming. :(

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