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JP Morgan On QE 3: "No Way, Jose"

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Tue, 05/31/2011 - 13:45 | 1325862 ??
??'s picture

memo to MHFT or should that be from MHFT

Tue, 05/31/2011 - 13:46 | 1325865 OutLookingIn
OutLookingIn's picture

NO? That means QE III is on the way!

Tue, 05/31/2011 - 14:17 | 1325985 Mountainview
Mountainview's picture

QE3 yes, but under a new name LM1 (Liquidity Measures 1) followed by SEM (Special Economic Measures)...and on and on...

Tue, 05/31/2011 - 14:31 | 1326033 flacon
flacon's picture

It will be called "Zim-Stim" - (short for Zimbabwe Stimulus). 

Wed, 06/01/2011 - 04:22 | 1327794 TwoShortPlanks
TwoShortPlanks's picture

The next series will be called 'Foreclosure Easing'...forcing the Banks to lend, agian, and again, and again. This is uberleverage for the banking uberspeculator...the creation of a Housing Derivative Market.

Tue, 05/31/2011 - 14:57 | 1326084 john39
john39's picture

well that does assume that a total crash is not, in the end, the real goal.

Tue, 05/31/2011 - 15:34 | 1326174 metastar
metastar's picture

Sure you've read all these truths before ...

  1. "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered."
  2. "I believe that banking institutions are more dangerous to our liberties than standing armies..."
  3. "The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
Tue, 05/31/2011 - 13:46 | 1325866 Cash_is_Trash
Cash_is_Trash's picture

Printers online. Check!

Analysts ready. Check!

Plausible deniability. Check!

...and lift-off of QE3, paving the way for further economic collapse and transfer of wealth never before seen.

Tue, 05/31/2011 - 13:44 | 1325869 Hugh G Rection
Hugh G Rection's picture

It's not needed... good.


Then give back the $25bil, cover all your silver shorts and stop manipulating Ag you fucking bastards.


O and sorry for missing the last 7 mortgage payments assholes, this underwater squater wants you to produce the paperwork... as soon as Linda Green gets a chance to sign the docs.

Tue, 05/31/2011 - 13:58 | 1325921 Arrowflinger
Arrowflinger's picture

Linda Green is bigger than Santa Claus.



Tue, 05/31/2011 - 13:48 | 1325874 Rainman
Rainman's picture

I am convinced our gubmint masters will do anything to cover up any and all previous fuckups with even more outrageous fuckups as necessary.

Tue, 05/31/2011 - 13:49 | 1325878 luk427
luk427's picture

How can anyone take what JPM or Goldman says seriously. They are the two most corrupt companies on the planet.

Tue, 05/31/2011 - 13:52 | 1325889 OutLookingIn
OutLookingIn's picture

Yes, and by proxy own the government. No matter one party or the other, they have both by the financial "short" hairs!

Tue, 05/31/2011 - 13:55 | 1325908 Hugh G Rection
Hugh G Rection's picture

Didn't you see "Too Big To Fail" on HBO???


Hank Paulson sold all his Goldman stock before moving to Treasury...no conflict of interest.  Fed and Treasury care about the American People, not their buddies at Goldman and JP.  No sir, no conflict at all..


<sarc off>

Tue, 05/31/2011 - 13:47 | 1325879 White.Star.Line
White.Star.Line's picture

Once graft starts, it's so, so, so very hard to stop....

Tue, 05/31/2011 - 13:50 | 1325880 Jim in MN
Jim in MN's picture

Well, it would be rather a faux pas to start QE3 without a TEOTWAWKI event first.  Ergo, it is impolite to 'see it coming' because that undermines the time-honored tradition of 'whocoodanew?'...

Tue, 05/31/2011 - 13:53 | 1325896 White.Star.Line
White.Star.Line's picture

Diversion almost seems unnecessary with the public slumbering along.

Tue, 05/31/2011 - 14:49 | 1326076 aheady
aheady's picture

Yeah, that's what I was thinking.

Tue, 05/31/2011 - 18:38 | 1326852 Fiat2Zero
Fiat2Zero's picture

This diversion is targetting ZH readers.

Tue, 05/31/2011 - 13:51 | 1325884 MyKillK
MyKillK's picture

Why does the Fed care about political backlash? They don't go through elections and Congress doesn't have the power to stop anything they want to do.

Tue, 05/31/2011 - 13:55 | 1325924 DosZap
DosZap's picture

Congress if they had testes, could pass a law today,and do away with the Fed.

Get enough votes from both parties, and the Pres cannot even veto it.

Bye bye Bennie & the Jets.

Tue, 05/31/2011 - 15:20 | 1326137 Hugh G Rection
Hugh G Rection's picture

You forget how the Fed deals with pesky elected officials?



Tue, 05/31/2011 - 18:45 | 1326859 Fiat2Zero
Fiat2Zero's picture

They don't, but they don't like to get called in to testify.  Then BB has to try to explain to our idiotic congressmen very basic economic facts and terms.  Oh and he might run into Ron Paul in the restroom and have to flip him the bird.

The fact is that the Fed is independent of congress.  They don't even have to tell them what they are doing (even after the fact).  Nor do congress want to know what the Fed is doing.  If they did, they'd have to try to understand economics, which they don't.

BB will do whatever he wants, and hide it.  We'll find out many years later what was done, if ever.

Tue, 05/31/2011 - 13:48 | 1325885 nah
nah's picture

when the only tools you have are cover ups and subsidies

Tue, 05/31/2011 - 13:51 | 1325886 ghostfaceinvestah
ghostfaceinvestah's picture

There was great political opposition to TARP too, it even failed a House vote, until they crashed the stock market in threat.

Expect the same this time, just like after QE1.  Should get a nice market correction in a few weeks.  If there is no further printing it will turn into an all-out crash.

Tue, 05/31/2011 - 13:56 | 1325929 fuu
fuu's picture

That was a beautiful day.

Tue, 05/31/2011 - 15:18 | 1326144 oogs66
oogs66's picture

if they crash the market again I swear i will cover shorts and get long and play their game like a nice sheeple

Tue, 05/31/2011 - 14:04 | 1325890 sbenard
sbenard's picture

I hope he's right, but expect he's wrong.

Re: Yellen's comments.

I don't think either "option" will work because if/as the "soft patch" (sounds strangely reminiscent of last summer, doesn't it?) gets any softer, the market will already be anticipating an extention of the dates of the first interest rate hike and the Fed's "contraction" of its balance sheet "assets" (if they can be called that). If the softness continues, they will already be baked into the cake.

QE3 is a done deal as far as I'm concerned. So is the resulting inflation!

Tue, 05/31/2011 - 13:53 | 1325891 earnulf
earnulf's picture

JP Morgan lying through their silver plated teeth.   But no QE3 till the public and CONgress screams for it.

Tue, 05/31/2011 - 14:33 | 1325999 Bay of Pigs
Bay of Pigs's picture

Yes, it's all about fear and brainwashing at this point.

"Help me, I'm drowning" (Congress to the FED)

Then throw them the anchor (QE3).


Tue, 05/31/2011 - 13:49 | 1325892 jiggerjuice
jiggerjuice's picture

Stealth QE3 at first. If the market drops, say, 5-10%, then the hounds will be screaming for QE3 outright - the hounds being Congress, who will demand that their insider trading deals remain in the green no matter what. Oh, and the banks too.

The only way to win trading is to copy bank prop desks or Congressional trades. Of course, infinite greed means Goldman will sell Congressmen shit wrapped in yellow foil and then short it... Until then, I doubt anyone in power will care enough to put them behind bars.

Tue, 05/31/2011 - 14:27 | 1326008 tmosley
tmosley's picture

QE-lite 2 bitchez.

Tue, 05/31/2011 - 13:49 | 1325893 TradingJoe
TradingJoe's picture


Tue, 05/31/2011 - 13:50 | 1325901 agent default
agent default's picture

Ok fine so there will be no QE3.  So the US will service and repay its debts in real terms instead of inflated dollars. I don't believe they can.

Tue, 05/31/2011 - 13:55 | 1325907 DosZap
DosZap's picture

What a sack of horse manure.


They have NO options but to do so.

And they know it.

So do we.

Tue, 05/31/2011 - 13:52 | 1325911 suckerfishzilla
suckerfishzilla's picture

If you don't know all of the details of the deal yourself then wager that JP Morgan is lying.  It is probably an absolute.

Tue, 05/31/2011 - 13:53 | 1325913 Josh Randall
Josh Randall's picture

This is french for "Please don't buy anymore PM's -- because the dollar will be stronger with no QE" sorry Morgue - lets see your shorts! 

Tue, 05/31/2011 - 13:56 | 1325915 suckerfishzilla
suckerfishzilla's picture

JP Morgan is the oracle of lies.

Tue, 05/31/2011 - 13:53 | 1325916 PulauHantu29
PulauHantu29's picture

"Oft before I swore but was I sober when I swore."

Deflationary depression = Riots in the streets

INflation = Higher prices and a few complaints

QE3 in some form is coming....100% guaranteed imho

Tue, 05/31/2011 - 14:00 | 1325930 Arrowflinger
Arrowflinger's picture

Ferolli didn't really say there would be no QE3, he just thinks it is politically dead until there is enough deterioration to foment an excuse.

Tue, 05/31/2011 - 13:57 | 1325931 JW n FL
JW n FL's picture

No Worries!


Secret Off Book 0.01% Loans for everyone except "We the People"!


Do you need money?


Are you are a known terrorist?


No Worries!! the FED has you covered! with a special, off book Loan! Look we gave Gaddafi $100's of Millions of U.S. Dollars while the U.S. Citizen was forced from their homes by illegal seizure!


The Politicians are owned by us.. so don’t worry.. the courts are owned by us.. so dont worry..


Come on down today for you backdoor, off book loan(s)! You won’t be disappointed! Just ask Gaddafi!


This special will last for a really long time so no rush, successfully operating now for over the last year!!


SHHHHHHH.. don’t tell “We the Sheepeople!” LOL!!!


Tue, 05/31/2011 - 14:03 | 1325937 JW n FL
JW n FL's picture

Technically our loans don’t count as U.S. debt proper!


So there is no need to raise the debt ceiling!


Time to make those scumbag, working class, out of work free loaders squirm!!!


Forced Austerity! Let’s see what we can push out of these sheep!!!

Tue, 05/31/2011 - 14:17 | 1325991 SheepDog-One
SheepDog-One's picture

Thats all thats ahead for america, more impoverishing and 3rd worlding. 

Tue, 05/31/2011 - 13:57 | 1325932 ArrestBobRubin
ArrestBobRubin's picture


Tue, 05/31/2011 - 14:03 | 1325933 AGORACOM
AGORACOM's picture

This further supports my call back on March 30th that QE3 will be delayed ... but it will come  (http://bit.ly/ehcdGc)

In a nutshell, there is little political support / economic basis for further QE ... until the floor starts to fall out again and QE3 does find political / economic support.

In the meantime, we are heading into potentially volatile times with the potential to damage / create wealth .... and I don't think the powers that be mind this scenario at all.


George ... The Greek ... From Canada


Tue, 05/31/2011 - 13:58 | 1325935 Cdad
Cdad's picture

Oh no...no more QE?  Who will buy the XRT then?  

BTW...what a masterful arbitrage trade on that ETF today.  Simply magical.  You have to tip your hat, really, at the scheme which works...until it doesn't.

I've never seen an entire group of stocks trade so obviously into hurricane like headwinds...even as one after another of the individual names contained within have taken massive hits.  The trade now has narrowed to a few key names.  Nothing like a thin and narrow bid to create wealth.

Thank you for this wasteland, Ben Bernanke.  Thank you too, Hank Paulson [even as HBO romanticises your epic heist].  Thank you Mary Schapiro for being so patient with criminal syndicate Wall Street bankers, giving them so much time to unwind their crimes by looking the other way and keeping your staff so busy meeting relentlessly with bankers in order to best determine which SEC laws can just be forgotten about.  

Tue, 05/31/2011 - 14:10 | 1325974 SheepDog-One
SheepDog-One's picture

HA HA great post as usual Cdad!

Tue, 05/31/2011 - 14:03 | 1325939 Robslob
Robslob's picture

Since they are overleveraged anyway they just don't want anybody to get a jump on them...fuck JPMorgue...!

Tue, 05/31/2011 - 15:17 | 1326139 JW n FL
JW n FL's picture

0.04% is over leveraged?


what do you mean sir? how dare you lead people to think that more leverage than before the crash is a bad thing! shame on you.. Shame! On!! You!!!


Everyone go back to grazing.. it all good! no worries! everything is under control and going to plan!



Tue, 05/31/2011 - 14:01 | 1325945 lieutenantjohnchard
lieutenantjohnchard's picture

the economist confirms the fed is a political animal. and to think to see inside (audit) the fed would compromise their independence. looks like the fed can be cowed afterall with pushback according to the economist.

i think it's spin. they'll find a way to do qe3 in one form or the other.

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