Last Fed Hawk (Excluding The Drama Queens) Kevin Warsh To Leave Fed March 31

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Thu, 02/10/2011 - 12:36 | 949589 jus_lite_reading
jus_lite_reading's picture

Me thinks internal tensions are running high... a collapse of the Fed?

Thu, 02/10/2011 - 12:38 | 949598 eckart
eckart's picture

QE3 to be confirmed in May then...BTFD

Thu, 02/10/2011 - 14:03 | 949997 Cash_is_Trash
Cash_is_Trash's picture

Can't we all just get along and monetize our problems away?

I swear, this QE will be entirely different; this time the economy will actually improve.

Thu, 02/10/2011 - 12:40 | 949610 TruthInSunshine
TruthInSunshine's picture

Just in time for what may be the largest, economic-legal catastrophe in...well, a long, long time?


The Rise and Fall of a Foreclosure King
Thu, 02/10/2011 - 12:42 | 949625 papaswamp
papaswamp's picture

Time to get out while the gettin is good. Don't want to be around when the masses come to take the fort.

Thu, 02/10/2011 - 12:45 | 949643 RobotTrader
RobotTrader's picture

Quant Sleaze is lifting all boats.

Especially consumer stocks.  Now that Warsh is out of the way, new highs on the indexes is assured.

WFMI on a tear today, up $6

Amazing how a 200,000 SF grocery store can do so well, and their items are 2x as expensive as Kroger.....

Thu, 02/10/2011 - 13:22 | 949836 raya123
raya123's picture

I suggest you pay attention to the euro instead of whole foods market.  The U.S. market will undoubtedly follow it lower.

Thu, 02/10/2011 - 12:46 | 949646 vote_libertaria...
vote_libertarian_party's picture

I just saw the movie Inside Job.  It's about the subprime fiasco and how the various rats made out.


One scene was about Mischkin being so wrong and how he bailed right as the collapse happened.

Thu, 02/10/2011 - 12:50 | 949667 Horatio Beanblower
Horatio Beanblower's picture

Was Mischkin the asshole that wrote the rosy report for the Icelandic banks and economy?  I think I saw him being interviewed in a trailer for the film.

Thu, 02/10/2011 - 12:46 | 949649 Prof Gulliver
Prof Gulliver's picture

He's lucky they didn't give him a blindfold and cigarette.

Thu, 02/10/2011 - 12:58 | 949712 TruthInSunshine
TruthInSunshine's picture

He plans on having Geithner start his car for him from now on (as many do).

Thu, 02/10/2011 - 12:49 | 949661 Fortunes Favor
Fortunes Favor's picture

The inflation behavior described by Warsh is consistant with our belief Phase Two of the secular bull market in Gold has begun. 

Precious Metals Outlook: Newmont(NEM) Takeover of Fronteer(FRG) Evidence of Phase II @



Thu, 02/10/2011 - 12:57 | 949704 Millennial
Millennial's picture

I love this video.

It talks about the US economy.

Though I imagine they are being generous about the economic timeline.

Thu, 02/10/2011 - 12:58 | 949713 AnarchoCapitalist
AnarchoCapitalist's picture

Great. Why was he going along all this time? Why was he not a vocal critic from the start? Maybe he has seen the err of his ways. Maybe he has seen the damage that the Fed's policies can cause. Is this just a simple "Let me set the record straight" before he leaves - in order to secure a more favorable legacy (when it all comes crashing down)?

Thu, 02/10/2011 - 12:58 | 949718 SheepDog-One
SheepDog-One's picture

Get out while the gettin's good!

Thu, 02/10/2011 - 13:00 | 949727 Popo
Popo's picture

Rats, sinking ships, and all that.

Thu, 02/10/2011 - 13:21 | 949827 kentfinance
kentfinance's picture


Thu, 02/10/2011 - 13:54 | 949963 lesterbegood
lesterbegood's picture

I concur.

Those "deep pools" must be getting pretty treacherous.

There be sharks in them there pools.

Bon appetit!

Thu, 02/10/2011 - 13:08 | 949750 TruthInSunshine
TruthInSunshine's picture

And in other news:

02-10 11:58: Dudley to be reappointed to NY Fed, sources say

Whew! That was a close one! I'm glad Goldman & JPM can rest comfortably now, knowing their man will be back in the money-passing-out role to Primary Dealers.  Dudley to be reappointed to NY Fed, sources say
Thu, 02/10/2011 - 13:14 | 949791 Sutton
Sutton's picture

Psychopathic leaders always purge/slaughter their courts before launching yet another mad scheme(to fix the consequences of the previous mad schemes).


Thu, 02/10/2011 - 13:41 | 949842 hambone
hambone's picture

Still seems no one can answer the central question (below)?  Where will all the money to buy US T's at current rates come from if not the Fed (and have no negative impact on other asset classes)?  Absent an organic answer, inflationary / hyperinflationary hedges seem the only answer?

US now needs to roll and create about $5T annually in Treasuries ($3T rolling over/yr based on $15T debt @ 5yr average maturity + $2T in new issuance).  That is $100B a week total.  Fed "only" has $900B Jan through June w/ POMO and rollover (that's bout $50B a week).  Who's going to buy the other $50B / weekly now through June...and then $100B+ weekly after that???  And at what rate?  There are Trillions the second half of '11 and $5T+ missing in '12 at anything like these rates to keep this going w/o QE3 or interest rates (and interest payments) going substantially higher (like $750B/per anum interest cost at long term average of 5%)?  If rates do increase to 5% average, total annual borrowing needs rise to $5.5T, etc. etc.

I'd think we can't do QE3 without making the world burn w/ inflation but can't not do QE3 without interest rate explosion eating 1/3rd+ of all tax revenue?  Again, obviously I've completely missed something here??? 

Either we're t-minus 4 months from interest rate shock or an impending March or April QE3 bigger than QE2 and unending flood of dollars round the world???

Thu, 02/10/2011 - 14:51 | 950215 Bryan
Bryan's picture

I vote for the unending flood of dollars.  Benny seems to have only one answer to all questions.

Thu, 02/10/2011 - 15:53 | 950459 ConfusedIdiot
ConfusedIdiot's picture

Great question HB. Maybe that 1 trillion in Euros the ECB will be printing over the next 6 months to paper over the banks will like a magnet to iron be drawn to the UST Deficit Bonds. Regards, CI

Thu, 02/10/2011 - 13:24 | 949843 Shameful
Shameful's picture

Bull, they can't pull the QE plug. Who is going to buy all the mounds of paper pouring out of the Treasury? The Chinese are a little full and the Underwear Gnomes are on strike.

If the Fed keeps QE then it eventually nukes the dollar. If the Fed stops QE then interest rates moonshot and the US defaults, nuking the dollar. The dollar is worth what faith people have in it, and faith will be running low when the US can't muster enough to send in an interest payment.

So they will kick the can. So I fully expect a massive market turn down in the next few months to scare money out of commodities and draw money into Treasuries. Not a permanent fix, but enough to squeeze out at least another year of record bonuses. Guys who wait it out in the metals will get stung if they don't sell on time, but if they sit tight will be totally fine.

Thu, 02/10/2011 - 13:26 | 949858 Reese Bobby
Reese Bobby's picture

Warsh is not to be admired, in my opinion.  Seems like the concentration camp guard who didn't kill anybody he didn't really have to... 

Thu, 02/10/2011 - 13:31 | 949882 gwar5
gwar5's picture

If the Hawks leave, we know what is coming next.

Thu, 02/10/2011 - 14:01 | 949991 AGoldhamster
AGoldhamster's picture

Chairsatan ... TD that made my day ... ROFL

Thu, 02/10/2011 - 14:31 | 950131 Lapri
Lapri's picture

I'm puzzled. Why does Tyler seem to think highly of this guy? He speaks and writes as if he's a hawk, with high-sounding words. But he has never once actually cast the NO vote. Never.

Fri, 02/11/2011 - 04:43 | 952259 chelonia1663
chelonia1663's picture

We are in a worldwide economic crisis AGAIN, and “MONEY” is at it’s very center AGAIN.  And we have let it happen AGAIN. It is a crisis of money management, and the result of permitting ruthless private international financiers to gain and keep control over “OUR” money AGAIN.  Yes, money is a sovereign right that arises from the sovereign right of an individual to enter into contracts.  By allowing that right to be usurped by private banking interests we have lost the greatest power a free and democratic people can have – economic power. I would say that 90% of all the people are confused about money. About what it is now, where it comes from, but more importantly, what it should be, and where it should come from.


Wealth often confused with money, can take almost any form, and historically it has, from gold to cattle, from grain to salt, and water to land.  These are all forms of wealth, commonly called commodity wealth with the exception of land, which is known as “real wealth” or “real estate” because it has certain distinctions that commodity wealth does not.  Notes or deposit receipts (money) for grain, metals, gems, or other items of value have served throughout time as a safer, more convenient means of transferring payment.  Here the reputation of the issuer was the key factor in its acceptance.


But the point here is that “money” is a medium, or means of exchange that takes the place of the items being exchanged. When items of value are exchanged that is called “barter”. Money is used in place of barter. Money is not the things themselves. For money to retain it´s integrity it should be free of any intrinsic manipulation which one of them is interest.


Mathematically Perfected Economy NOT ONLY restores our sovereign right to issue our own promissory notes to each other, but also offers a money management system at the same time.


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