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March FOMC Minutes: No Need To Taper QE2, GDP Outlook Revised Lower

Tyler Durden's picture


Key Highlights:

  • GDP revised modestly lower from January meeting on surging commodity prices
  • FOMC sees stronger recovery, higher inflation
  • Fed officials divided over tighter policy
  • Almost all Fed officials saw no need to taper QE2 buying

On inflation: "Sizable increases in prices of crude oil and other commodities pushed up headline inflation, but measures of  underlying inflation were subdued and longer-run inflation expectations remained stable."

"The staff revised up its projection for consumer price inflation in the near term, largely because of the recent increases in the prices of energy and food. However, in light of the projected persistence of slack in labor and product markets and the anticipated stability in longterm inflation expectations, the increase in inflation was expected to be mostly transitory if oil and other commodity prices did not rise significantly further. As a result, the forecast for consumer price inflation over the medium run was little changed relative to that prepared for the January meeting."

On ECB hiking: "The European Central Bank (ECB) left its benchmark policy rate unchanged at its March meeting, but the emphasis on upside risks to inflation at the postmeeting press conference led market participants to infer that the ECB might well tighten policy at its meeting in April."

On UK hiking: "In the United Kingdom, market-based readings on expected policy rates indicated that investors anticipated some tightening of policy before the end of this year."

On Brian Sack's QE2 Progress Update: "Since November, purchases by the Open Market Desk of the Federal Reserve Bank of New York had increased the SOMA’s holdings by $310 billion. The Manager reported that achieving an increase of $600 billion in SOMA holdings by the end of June 2011 would require continuing to purchase additional securities at an unchanged pace of about $80 billion per month. There were no open market operations in foreign currencies for the System’s account over the intermeeting period. By unanimous vote, the Committee ratified the Desk’s transactions over the intermeeting period."

On labor: "The labor market continued to show signs of firming. Private nonfarm payroll employment rose noticeably in February after a small increase in January, with the swing in hiring likely magnified by widespread snowstorms, which may have held down the employment figure for January. Initial claims for unemployment insurance trended lower through early March,  and surveys of hiring plans had improved this year. The unemployment rate dropped markedly in January after a similar decrease in the preceding month, then ticked down to 8.9 percent in February; the labor force participation rate was roughly flat in January and February."

On the stock market as the economy:
"Broad U.S. stock price indexes were about unchanged, on net, over the intermeeting period. Option-implied volatility on the S&P 500 index rose sharply in mid-February in response to events in the MENA region and remained somewhat elevated thereafter.."

On increasing dealer leverage: "In response to special questions, dealers reported some increase in the use of leverage over the prior six months by traditionally unlevered investors—in particular, asset managers, insurance companies, and pension funds. More broadly, while the availability and use of dealer-intermediated leverage had increased since its post-crisis nadir in mid-2009, a review of information from a variety of sources suggested that leverage generally remained well below the levels reached prior to the recent financial crisis."

On the economic outlook: "The pace of economic activity appeared to have been a little slower around the turn of the year than the staff had anticipated at the time of the January FOMC meeting, and the near-term forecast for growth of real gross domestic product (GDP) was revised down modestly. However, the outlook for economic activity over the medium term was broadly similar to the projection prepared for the January FOMC meeting. Crude oil prices had risen sharply and federal fiscal policy seemed likely to be marginally more restrictive than the staff had judged in January, but these negative factors were counterbalanced by higher household net worth and a slightly lower foreign exchange value of the dollar. As a result, as in the January forecast, real GDP was expected to rise at a moderate pace over 2011 and 2012, supported by accommodative monetary policy, increasing credit availability, and greater household and business confidence."

On the yield curve:
"Measures of inflation compensation over the next 5 years rose, on net,
over the intermeeting period, with most of the increase concentrated at
the front end of the curve, likely reflecting the jump in oil prices. In
contrast, measures of forward inflation compensation 5 to 10 years
ahead were little changed, suggesting that longer-term inflation expectations remained stable."

No need to taper QE2: "As its earlier program of agency MBS purchases drew to a close, the Federal Reserve tapered its purchases during the first quarter of 2010 in order to avoid disruptions in the market for those securities. However, the Manager indicated that the greater depth and liquidity of the Treasury securities market suggested that it would not be necessary to taper purchases in this market. not be necessary to taper purchases in this market. The Manager noted that market participants appeared to have reached the same conclusion, as they generally did not seem to expect the Federal  Reserve to taper its purchases of Treasury securities. In light of the Manager’s report, almost all meeting participants indicated that they saw no need to taper the pace of the Committee’s purchases of Treasury securities when its current program of asset purchases approaches its end."

Full Minutes:



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Tue, 04/05/2011 - 14:11 | 1137884 Caviar Emptor
Caviar Emptor's picture

We gonna need more allowance money, Daddy-O!

Tue, 04/05/2011 - 14:27 | 1137957 Hard1
Hard1's picture

You missed an important paragraph:

On decreasing the value of the dollar:  The Federal Reserve board of governors continues to mantain an accomodative dollar printing policy.  Prices of paper and ink have increased during the fourth quarter, but we continue our policy of mantaining the presses at full speed untill they break down.


Veni vidi printit   -  Ben S. Bernanke, 2011

Tue, 04/05/2011 - 14:30 | 1137970 Mike2756
Mike2756's picture

Let's go to the videotape:

Tue, 04/05/2011 - 16:25 | 1138444 oh_bama
oh_bama's picture


Tue, 04/05/2011 - 15:23 | 1138209 I Am The Unknow...
I Am The Unknown Comic's picture

Veni vidi printit...VENI  - (I came, I saw, I printed.....then I CAME AGAIN!)

- B.S. Bernankster, 2011

Tue, 04/05/2011 - 14:14 | 1137885 EscapeKey
EscapeKey's picture

I wonder which parts of this will be read to Bernanke in court, as he's tried for treason post-crash.

Tue, 04/05/2011 - 14:16 | 1137901 Clueless Economist
Clueless Economist's picture

I deserve to be tried for treason/stupidity along with him

Tue, 04/05/2011 - 14:16 | 1137904 spiral_eyes
spiral_eyes's picture

sup pauly, you buy silver?

Tue, 04/05/2011 - 14:18 | 1137919 carbonmutant
carbonmutant's picture

He's gonna have some company...

Tue, 04/05/2011 - 14:22 | 1137940 TradingJoe
TradingJoe's picture

I laugh at anyone who believes these bastards will ever see a court of justice from the inside or even be in front of such, giving account! They will all leave when the time comes or will find some "eloquent" excuse and will get away with! lets face it folks, only a violent force may really CHANGE things, other then that go back to dancing with the brain dead and munching McShit! 

Tue, 04/05/2011 - 14:29 | 1137973 I Am The Unknow...
I Am The Unknown Comic's picture

EscapeKey, I keep hoping that one of these nights I will have that dream where that happens.  I keep trying but can't seem to cause myself to even dream about justice while I live and breathe in this land.  So, we might as well think and type on about justice becuase that is as close as we will get to justice.   

You know I think we ought to officially change Puerto Rico's name to "Beautiful Island" and rename the USSA "Casa-RICO" (as in house of racketeering)...

Tue, 04/05/2011 - 14:53 | 1138059 Maniac Researcher
Maniac Researcher's picture

The [always] future crash is the ultimate fairy tale: All villans are destroyed by it.

When *anyone* here is ready to have an adult conversation on what a crash would actually look like, I'll be waiting. I won't hold my breath. There's this thing called history you may want to consult -- Try some Kindleberger, Wallerstein or Paul Kennedy instead of Rothbard and Rand for a change.

No, instead you have people wishing for a crash. Why? Because you don't contribute much to the world. You will be forgotten - and that makes you nervous. You feel like you have no control. You never did.

Hoping for the apocalypse takes all the responsibility out of your hands. Why are you people complaining about this corrupt system in the first place? You're the ones who are investing in it - you admit this daily. You think buying PMs is not contributing? That's simply wishful thinking at best and completely delusional at worst.

The complaint is nothing new: "Waaah. The debt is too high and it's ruining the returns on the investment I've made in the system that created the debt." You act as if this is the biggest problem only because it is causing you the most worry. Meanwhile, there are people sleeping on the street - and they don't care what you think about Bernanke.

No -- the collapse that you all want is not coming. Instead you'll get a long, drawn-out period of malaise which, incidentally, you are contributing to. Feel free to make the situation worse by demeaning women, lashing out at historically oppressed groups, blaming victims, etc. I'll continue to drop by once in a while to make the ride less comfortable by pointing out your gross hypocrisy. Have a nice day.

Tue, 04/05/2011 - 15:13 | 1138154 EscapeKey
EscapeKey's picture


Tue, 04/05/2011 - 15:16 | 1138176 dogismyth
dogismyth's picture

I'd agree with most of your comment.  Essentially, no one wants to take responsibility so we are spoonfed shitburgers for longer than we want.  No one is interested in the common good although they may convince themselves they are advocates through their incessant whining and not action.  But what they are really saying is, "I'd better be right, or I'll be pissed off".   So the games continue.  I take from you.  They take from us.  We take from them...and so on down the line until some equilibrium is achieved for another  temporal period.

Of course nothing will ever change.  The change people pretend they want is change for someone else.

Tue, 04/05/2011 - 15:24 | 1138203 Bicycle Repairman
Bicycle Repairman's picture

Did you just stop by to complain?

Tue, 04/05/2011 - 15:28 | 1138235 tmosley
tmosley's picture

I guess you spend your time running back and forth between message boards judging all their members as though they were a single person.

Get off your high horse, douche.  Also, if you are gong to claim that no "crash" is coming, feel free to tell that to this chick:

Just another piece of collectivist garbage.  

Tue, 04/05/2011 - 16:51 | 1138524 Maniac Researcher
Maniac Researcher's picture

I'm glad you're taking this personally, tmosely. I am talking about people like you - those who have been around ZH long enough to perpetrate the myth I am deflating. Again, because I have been observing quite a bit longer than I have been commenting, I have noticed that professions of some future crash are both lazily constructed and promoted by individuals just like you.

What I am doing is merely expositing your motivations. Seems I've touched a nerve that has triggered [gasp] more name calling. Your response tells me you have little else to offer - which only adds weight to my earlier point. Thanks.

What are my motivations? to restate - I am exposing your hypocrisy for the benefit of your less incisive members. Your welcome.

Note: You may want to read Furet rather than wikipedia for a deeper knowledge of the French Revolution - me'thinks your grasp of the historiographical controversies surrounding the event are remedial, at best.

Tue, 04/05/2011 - 17:39 | 1138596 EscapeKey
EscapeKey's picture

What's actually interesting is not so much the motivation of tmosley or others - it's the motivation of you. You essentially enter a forum, which is known to be a libertarian doomers hangout, and post something really rather trivial to "gather the response".

From a psychological point of view, the oddity is you. You spend this time entering - what from your contrarian perspective could be considered the lions den - and start pulling its tail. You couldn't possibly know anyone's true intention unless you were located right next to the person you question, so your arguments with regards to "knowing" or "understanding" the persons true motivations basically just doesn't wash.

As for your "insights", you really expose very little. Your arguments boil down to more run-of-the-mill vague observations, with little actual reflectance upon the situation we're currently in. They're not terribly clever, and tomorrow they will have been completely forgotten.

But no doubt you'll be back, parading your desire to be the focus of attention once again, whatever it takes.


Reviewing your post history - I still don't understand why you post here:

"Unfortunately for Herd, "captial research" bloggers, and the rest of the ZH crowd, their own narrow, lazily-constructed view of history - the one that hinges primarily on personal experience rather than empirical research - informs their opinion."

"Yes...keep repeating to yourself that ZH is a credible source of information."

"It's cute how pervasive poverty and unemployment are a big joke to ZHers.

I suppose since the apocalypse is [always] tomorrow, all of you can sleep soundly knowing you did nothing about it but snarkily trade bigoted jokes, bad investment advice and poorly conceived conspiracy theories."

"why am I harping on this? because I observe a decent amount of history re-writing on ZH - especially when it comes to throwing around Weimar."

"You've got nothing to offer. So the guy who hates women and his ilk think the U.S. is acting as an imperialist power. So what? You going to do your part to fight for justice? Where are you going to start? by demeaning more women? blacks? jews?"

Tue, 04/05/2011 - 19:09 | 1138988 Maniac Researcher
Maniac Researcher's picture

EscapeKey - Thank you for addressing my comment. Let's go over your shakily constructed rebuttal now, shall we?

A) First, you've decided to characterize my motivation, which I have already stated clearly multiple times [to expose the hypocricy of bigoted and semi-affluent individuals crying foul at corporate corruption] as my desire for attention. This tactic may work with the uninitiated, but I am quite familiar with this dismissive ploy - it has no bearing on my posts. No offense, but you've created an easy bubble to burst. Try harder next time.

As far as your claim that my insights do not reveal much - let me ask you a question: Why are you addressing them then? And furthermore, why have you foolishly provided a long list of cases where I have?

For those that want to rewrite the French Revolution or the New Deal, please go ahead and refute. I'll be waiting. For those of you who want to put Rothbard on a pedestal, I'll happily knock him off for you. For those of you who think you know something about the MBS industry - I'd be amused to match whatever you think you know with insider experience - For those of you who want to mischaracterize political developments in Weimar Germany - I'd be happy to provide reading assignments from past doctoral courses - For those of you studying corporate crime, I'd be happy to compare the many years worth of notes I've amassed. Time and again I've invited other ZHers to engage a multitude of topics. But for the most part [as I have stated ad nauseum] the responses are ignorant, lazy, bigoted, and disappointing. Thus, my primary interest in engaging this community now is to point out the hypocricy of its claim to "openess" in addressing these topics. That, and the more general dishonesty I have already illustrated above.

Oh yeah - one final point in this section -- do you really think you are going to win a lot of allies with the near constant unmoderated bigotry? Eventually, as is the rule of consolodating opinions on the internet, you will only have supporters who share these discriminatory attitudes. If you want to make the claim that this represents a diversity of opinion - I'd like to take the opportunity to laugh in your face.

B) It is amusing that you consider ZH the "lions den" - way to inflate your own self-importance. Feel threatened much? Maybe you ought to strengthen your own ideals.

C) The observations I am making do two things: they address the hypocricy of the individual comments - and then make a wider statement about the community. These  statements, unfortunately for your narrow interpretation, are based on my long-time readership of ZH - rather than a new development. I appreciate that you have cited numerous conversations I have had revolving around this subject to demonstrate that hypocricy is, in fact, a reccurring issue on ZH.

D) Your own comments support my claim rather than diminish it. How so? By arguing that any contrarians do not belong, you are inadvertantly supporting the idea that there should be a continuity of opinion on Zerohedge. I have been noting this decidely widespread desire for homogenity of sentiment among ZHer's for awhile. And I'm not the only one.

You cannot have your cake and eat it, too - you cannot say "Waah! If you don't like what we say here, then GTFO" and then turn around and whine when someone calls it an echochamber. Do you see where you've painted yourself into a corner? Good.

E) Finally, thank you for providing the highlights of my most recent commentary. I hope I'm not the only one who has noticed that you've reprinted them with out rebutting any of the points I have made. Please feel free to address any of them. I'll be waiting.

Tue, 04/05/2011 - 19:21 | 1139019 EscapeKey
EscapeKey's picture

First off, I don't really care what you think of me, I'll never meet you, and I don't care about your post in detail, but the pattern is obvious. Thanks for proving my point. I really do think you need to seek help, as your posts are nothing, long lists of grumpy tirades contributing very little but bile. No doubt you'll reply with more of the same, but I've tried assembling the most obvious for you to see below.

Your posts reflect an arrogant, self-perceived importance, which makes you the biggest hypocrite of them all.

shakily constructed rebuttal now


expose the hypocricy of bigoted and semi-affluent individuals


 the responses are ignorant, lazy, bigoted, and disappointing. 


general dishonesty I have already illustrated above.


do you really think you are going to win a lot of allies with the near constant unmoderated bigotry


 I'd like to take the opportunity to laugh in your face.


 way to inflate your own self-importance


unfortunately for your narrow interpretation


demonstrate that hypocricy is, in fact, a reccurring issue on ZH.


And finally,

I hope I'm not the only one who has noticed that you've reprinted them with out rebutting any of the points I have made. 


There's no point. In your warped mind you are inmeasurably superior regardless, and no-one from a feeble society, such as ZH, will ever tell you differently. Seek help.

Tue, 04/05/2011 - 21:19 | 1139370 Maniac Researcher
Maniac Researcher's picture

Nice non-response. By the way, name calling isn't a rebuttal. It's a defence mechanism.

What you read as superiority and arrogance are, in reality, your own failings to address any of the points I have brought up.

Again - your use of the common ploy of projecting your own inabilities as someone else's problem might convince the uninitiated; however, it does nothing to address the subject(s) at hand. Instead, you've conveniently utilized this rhetorical device as a means of dodging the conversation. Unsubstantiated psychoanalysis aside, you may need assistance understanding the purposes of the language you are employing -- that and the repeating of your dismissive "seek help" phrase makes it sound like you have nothing else to offer.

Wed, 04/06/2011 - 00:31 | 1139772 Smedley Noshbone
Smedley Noshbone's picture

you use a lot of big words, especially that Historyografic.....anyway,  what are you?  some kind of Scientist or Genius or something?

im not used to reading things like that cause it's confusing to me.

oh well, some people write lengthy Pontifications (thank you father) and some people just like to get laid once in a while.

Tue, 04/05/2011 - 15:38 | 1138246 I Am The Unknow...
I Am The Unknown Comic's picture

@ Maniac Researcher:  you're right, honey, it' all my fault.  I accept full responsibility for everything that has happened.  If it wasn't for me, the criminals on Wall St. and the private corporation known as "The Fed" (Hey, they don't call them "The Hungry" for damn good reason!), would never have been forced to profit wildly through regulatory capture, fraud, and blatant racketeering while so many continue to suffer. 

I caused all of this, all by myself (though maybe with a little help from my friends here at 0-Hedge). You're right.  I also caused the Inquisition, the Holocaust, and the Rwandan genocide, amongst others.  I'm sorry. 

Please put blame on the perpetrators and not the victims. 

Tue, 04/05/2011 - 16:57 | 1138541 Maniac Researcher
Maniac Researcher's picture

I am sure such snark can be well balanced with an account of how you have been *greatly* victimized by the evils of the banksters and their system. Please enlighten us with an anecdote about your brutal trevails.

Tue, 04/05/2011 - 21:06 | 1139328 I Am The Unknow...
I Am The Unknown Comic's picture

you betcha:   putting up with bankster apologist sludgebrains like yourself is anecdote enough about the brutal trevails I've had to endure.  Read the MSM news much?  It's a daily onslaught of brutality against the founding principles of this once great country.  Constant and consistent unregulated criminal acts from banksters is a worse form of daily onslaught of crimes against humanity.  All the above are an assault on our freedoms, our land, our society, and most importantly, our Constitution (which I'm sure you would love to re-write/revise/redact/re-interpret to suit your judgements).  Without this thing called Rule of Law (maybe you should look that up) applying equally to all as Justice should be blind (that's why the lady with the scales is wearing the blindfold in case you didn't know [FYI - it's NOT because she's a produce merchant who's into kinky sex]); these affronts are indeed "Greatly" victimizing all of us, including you, whether you are too self-absorbed and arrogant to realize it or not.   

Why don't you tell us all how your life is so much better post bankster financial terrorist actions of 9/2008?  Tell us all, please, how you have profited and continue to profit.  Oh enlightened, initiated and wise one, please educate us all just exactly how the US is doing better, how far we have come, and how we are heading to a state of nirvana and prosperity for all.   

Do you get paid post your comments?  How much do you make?  Who pays you?  I honestly would like to know.  It looks so easy, and I post here anyway, so why shouldn't I set up an alternate screen name and make some extra cash?  How do I get in on this gig?  Can you enlighten me on that, eh guru?        

Tue, 04/05/2011 - 21:46 | 1139451 Maniac Researcher
Maniac Researcher's picture

Let's deconstruct Comic's "analysis":

I asked how Comic has suffered during the current recession to make a point about the affluence [and its underlying hypocricy] of ZH posters and their complaints about widespread corporate exploitation. As I have noted time and again, if you are contributing to the system that is causing you misery, you have to include yourself in the blame-game. Instead Comic has implied the tired device of turning the question on the poster rather than addressing it. For the umpteenth time, this ploy may work on the inexperienced - but to me, it only demonstrates that you have nothing substantive to respond with.

Comic has then decided to use this rhetorical device twice - accusing me of sympathizing with those who have perpetrated the massive financial fraud of the last two years. This is simply a strawman - and even a casual reading of my comments demonstrate that the case is quite the opposite. To refresh your memory, I work exposing white collar crime. That is my expertise.

Like EscapeKey above, Comic reads his own impotence in addressing the points I have made as my arrogance. Again, this is a lack of competence on your part, Comic, not mine.

[your odd non-sequiturs about the constitution and the rule of law were mildly entertaining, btw]

Oh and you know what I love? When ZHers hearken back to some American "golden age" - why don't you tell us exactly when that era took place? [and for whom?] I am genuinely curious.

To top it off, of course, Comic then employs the fevered, conspiracy tactic of accusing me of being some kind of paid poster. Come on. Many of us have read enough blogs to know the warning signs: short posts lacking any kind of analysis - often cut and pasted over and over again. I'm sure you'd like to believe that I am a paid opponent. Unfortunately for you, this rebuttal is supplied independently and for free. Enjoy.

Tue, 04/05/2011 - 22:27 | 1139526 tickhound
tickhound's picture

"...this rebuttal is supplied independently and for free."

Irrespective of right or wrong... There is nothing "independent" to be found among the self-appointed guardians of the status quo...

Should read "...this rebuttal is supplied regurgitatingly and despite my freedom for original thought"

I won't call you arrogant, nor unintelligent... Just unoriginal.

Tue, 04/05/2011 - 23:09 | 1139625 Maniac Researcher
Maniac Researcher's picture

Your response here is simply another straw man. I invite you to review any of my past comments for evidence that I defend the status quo.

You've foolishly found yourself equating my criticism with sympathy for the "opposition." Of course, this is failed thinking to begin with - because reality doesn't fit neatly into binary sides that win or lose.

I am not even sure where your accusation of "unoriginality" comes from -- this isn't an art critique - this is me calling out individuals and the community of hypocrisy. Rather than addressing my claims via counterexamples, each one of you has only offered fallacy arguments. Feel free to continue your backpedaling..


Tue, 04/05/2011 - 23:37 | 1139678 Maniac Researcher
Maniac Researcher's picture

Laughs - I love how none of you thought to jump on me about my misspellings of hypocrisy. That's ironic. Luckily, the coffee beat you to it. You guys are slipping.

Wed, 04/06/2011 - 00:18 | 1139745 tickhound
tickhound's picture

"Unoriginality" as it pertains to an "art critique"...  I'd claim pseudo ignorance since reality doesn't fit neatly into this binary assumption, but that would suggest you a "straw man" and include you within the community of hypocrisy.  I dare not.

"continue backpedaling" lost me... Words usually reserved after the introduction and dialogue has begun and positions clearly stated and counter(s) been made.  There is something impulsive about these words, almost desperate.  But we'll leave Freud out of this.  Has a subtle tone of a failed industry leader within a failed industry... "Exposing white collar crime"... Such that the fox admits he guards the henhouse.  But suggesting this of you would mean describing this industry as a collective, or that you may be part of a "community of hypocrisy."  I dare not.

Regarding the "assumptions" you claim I've made... Its possible.

"Why are you people complaining about this corrupt system in the first place?  You're all investing in it." 

Investing and protecting are two separate actions, and reality doesn't fit in this binary.  But playing the game doesn't make me a willing participant.  And me "wishing" for doom, as you hold me guilty by association, doesn't make you right.  I wish for no such thing.  But I'm hedged, and gladly.  I'm here because I know something is wrong.  I can assume you are too, but something else is bothering you...

"When *anyone* here is ready to have an adult conversation on what a crash would actually look like, I'll be waiting"

So tell me... I'd like to hear your opinion.  Should you choose to attack out of reflex, well then, feel free to continue your backpedaling...

Wed, 04/06/2011 - 00:40 | 1139789 Maniac Researcher
Maniac Researcher's picture

Yeaaah. I believe I was the one pointing out the problem of binary thinking earlier. So this false rant that somehow I'm employing it makes you look foolish.

Thanks for ascribing more responsibility than I actually have for my job though. I am committed to what I do, but am I the sole policeman of the corporate world? No. That tidbit about my career was simply to point out the irony of your (near constant) flow of mischaracterizations.

Investing and protecting, eh? The word I would choose is contributing.

What I'm doing is simply pointing out the hypocrisy of the community, and then addressing each of its defenders. Because that group includes you, you are, in fact, guilty by association. Again, let me ask you a question: when you see misogynistic, bigoted and hateful comments on ZH, what is your coping mechanism? Do you think of puppies? Sunlit beaches? A smiling aryan child? Inquiring minds want to know..

[Oh yeah - mirroring my comments does not indicate that you've utilized them correctly, they have anything to do with the conversation, or have any context. This is literally the rhetorical equivalent of "I know you are but what am I?" and makes you look silly. I would joke about your own 'originality' but that would be redundant now, wouldn't it?]

Wed, 04/06/2011 - 00:59 | 1139816 tickhound
tickhound's picture

"Silly", "foolish"... Weak repeated efforts.  Running out of names. 

AND, as far as "what IT will look like", that's what I thought.  You have nothing.  Nothing to offer.  No contribution.  No opinion.  Just fluff.  Like your industry.  Albeit committed.

It's not your fault.  You're a product.  Whether bred, formed, or free to decide... I'll call you for what you are... A waste.

As far as my own "unoriginality"... What is this, an "art critique?"  But that would be straw man, or hypocrisy.  You choose.

Wed, 04/06/2011 - 01:48 | 1139878 Maniac Researcher
Maniac Researcher's picture

You don't know the difference between adjectives and nouns, do you?

Let me explain:

when I use adjectives, I am explaining why something you are saying is nonsensical, or has faulty logic, or is plain stupid. This is also called a value-based judgment.

When you use nouns, you are simply name-calling. This is also called a fallacy argument...or a waste, if you will.

So what I am using are descriptions not names. I know this can be difficult to understand. You see, if the conversation is built around descriptions, or value-based judgments, we can debate these. Some of your peers got it right [see above and below].

The reason you haven't directly attacked my claims are twofold: My argument has demonstrable results -- this comes from the use of descriptors [also known as adjectives or adjectival phrases].

A) This community constantly discusses its frustration with fraud in the financial system and yet also constantly discusses its participation in it. So the question becomes: Why are these people complaining? Oh yeah -- and a lot of people have it worse off than them. What are they, assholes?

B) This community also consistently allows hateful, discriminatory commentary to filter through their conversations. So the question becomes: Why does it matter what these bigoted people say? ..and if they have been hurt by financial fraud, who cares?

You see what I did there? I bolded the descriptors for you. Now you try!

Yes, you have left me an opening to be extremely sarcastic. Learn how to have a discussion.

My only [and continuing] point: Gee, isn't it ironic that bigoted assholes [aka Zerohedge] are playing activist by exposing injustices in the financial system?

Wed, 04/06/2011 - 03:41 | 1139902 tickhound
tickhound's picture



And he brings the ad hom irrelevancy.  What a joke. 

Waste v. - to consume, spend, or employ uselessly or without adequate return; use to no avail; squander  n. - An unusable or unwanted substance or material, garbage; trash

Examples of "waste" would be your industry, your role within it, your role in the community, your contribution to society, and your last post.

I laugh in your fucking face.

Wed, 04/06/2011 - 13:32 | 1141752 Maniac Researcher
Maniac Researcher's picture

I've given you scant details on what I do - so your pronouncements about my industry(?) have no merit - and not to sound like a broken record - make you look stupid AKA "I'm going to criticize this thing I know nothing about! That's sure to go over well!"


You are continuing to simply repeat things I have already mentioned. Perhaps you have run out of things to say, but this conversation has you upset to the point where you need to continue to respond with more non-answers.

Really, the premise of this discussion is simple: I called ZH a bunch of hypocrites, cited examples and addressed responses. You've simply mirrored what I've said, tickhound.

Mirroring is a common troll response, used to get a rise out of someone - because instead of responding, you're simply repeating. The goal is to be annoying enough to derail a conversation. I get it, tickhound; however - and unfortunately for you - that does not A) make my point less valid B) makes you look like you have nothing further to say because you have not addressed my points. My claims are addressable in a reasonable fashion, by the way. You may want to read more deeply into this thread.

Considering your response, I would say your comprehension skills are pretty low. ZH probably deserves better defenders with better reading and discussion skills.

Tue, 04/05/2011 - 23:40 | 1139687 I Am The Unknow...
I Am The Unknown Comic's picture

@Maniac Researcher: buster I literally set the curve in my Logic and Reasoning class in undergrad. 

I responded directly to your challenge.  I did not set up a strawman argument.  What part of my response did you not understand?  Are you incapable of comprehending that the breakdown of Rule of Law and daily breaches of our Constitution are destroying our society and therefore you, me, and all of us are indeed victims?  Do I have to draw you up a Venn Diagram? 

If you disagree with my premises, then you are either an anarchist, a fascist, or just a plain antisocial psychopath.  To be clear, my premises are:

1) Adherence to The Constitution of the United States of America is a necessary condition of the continued existence of the United States of America

2) Rule of Law must apply equally to all citizens (and participants, which includes corporations - now defined as "persons") of the United States of America, as a necessary condition for the continued existence of the United States of America

3) When conditions 1) and 2) above are not BOTH met, the United States of America will not continue to exist.  Now, read that very carefully:  the UNITED.....STATES....of America.  Got it?  

Therefore, by violating 1) and/or 2) above, banksters (and one may even extrapolate to include bankster apologists such as yourself) are indeed causing great harm to our country and threatening its very existence.  Again, we all suffer from this. 

I simply do not know how to make that any more clear for you.  If you can not comprehend straightforward logic and reasoning, then I can not help you. 

As for your illogical, fallacious guilt by association reasoning: to be clear, I did NOT contribute to the "system" you mention (BTW what the hell are you talking about - please define this "system" --- my Grandfather had a "system" for playing that the kind of "system" you're talking about?).  To be clear, I did NOT violate 1) or 2) above and am NOT complicit. 

Now, you still have not replied to my questions, and I am waiting.  How are you better off?  How is this country better off since the 9/2008 financial terrorist assault?  Where are we heading?  Why do you defend criminals?   

I'm glad you're not a paid poster, and I wish I could return the comment that you are mildly entertaining, which you are not.  But you are indeed pretty damned arrogant.   

Wed, 04/06/2011 - 00:18 | 1139718 Maniac Researcher
Maniac Researcher's picture

um..all you've done is change the subject of the conversation. This whole bit about the constitution is all you, dude. You're having a discussion with yourself.

Secondly, you're still doing the "I'll turn it around and ask you the same question" bit as far as your Reaganesque "are you more better off" line of questioning goes..

I was the one who asked you how you were doing financially. Why? Because the original conversation - you know, the one that is actually being avoided here - was my claim that it is quite ironic that affluent armchair investors are complaining about financial fraud as they gleefully participate in the system that exploits them. Oh yeah - and if they lost money, why should anyone care about a bunch of bigoted assholes [and the ones who silently condone them] AKA the ZeroHedge community anyway?

Again, calling someone arrogant because you don't like what they are saying is not a rebuttal. It's called backpedaling.

Finally, I find it endlessly humorous that you call me a "bankster apologist." As I have mentioned on numerous occasions, I research and expose corporate fraud for a living. If you want me to stop responding, then stop telling jokes - I find these strawmen particularly funny.


Now as far as your question about where we are heading...that is an interesting conversation - especially when it is stripped away from this impending apocalypse bullshit..

Wed, 04/06/2011 - 00:12 | 1139721 Maniac Researcher
Maniac Researcher's picture

...whenever you are ready to have a conversation free of fallacy arguments, I'll be waiting.

Wed, 04/06/2011 - 00:53 | 1139792 I Am The Unknow...
I Am The Unknown Comic's picture

I have presented my arguments.  You have failed to prove them wrong.  You continue to be unable to associate the destruction of the USA with negative financial repurcussions.  

How am I doing financially?  Well, frankly that is none of your business, but just to entertain your ego I will tell you that I'm getting by, thank you very little.  It is common knowledge that indeed as a country, as citizens of the USA, and as members of this crazy concept we call a civilized "society" ("dude" you really need to look that one up! - "dude") WE ALL ARE worse off than we were prior to the financial terrorist bankster attack in September 2008.      

I have proven my points and you have failed. 

I am STILL WAITING for your responses to my questions.  Since you are so good at logic, why don't you lay out your premises point by point for us all to examine (like I did)? Be sure they are free of fallacious arguments, and be sure not to change the subject. 

Oh and for goodness sakes don't try to tell any of us that you "expose corporate fraud for a living."  That is the funniest thing I have heard in the last 20 minutes.  It means that either you are bankrupt as a businessman, are unemployed, presently under investigation for some trivial issue (didn't fill out that 1099 correctly did you?), are sitting alone in your SEC office which is staffed by only you, or are writing to us from prison.  You funny, wiseguy! 

PS we don't give a shit about your misspellings


Wed, 04/06/2011 - 01:11 | 1139837 Maniac Researcher
Maniac Researcher's picture

Your "argument" was changing the subject to the Constitution. The subject of this conversation began on comment #1138059. Please see my reiteration of this argument on comment #1139718. Your attempt to redirect the conversation is transparent.

I don't feel the need to explain the details or success [I am doing decently, thanks] of my career. As mentioned multiple times now, I brought it up simply to demonstrate the irony of your mischaracterizations via your flimsy and poorly-reasoned "you're with us or against us" argument.

By the way, since when is researching fraud and perpetrating fraud the same thing? That makes no sense. I suppose you are really grasping at straws to find some way to demonize me now.

Look, I know you're butthurt that I won't take your carefully constructed Constitution quiz...if you want to get me interested in a conversation with you about Constitutional law, at least let's talk about Santa Clara v. Southern Pacific. I'd be happy to take that subject on...Actually, now that I think about it - I don't think I've ever seen anyone on ZH bring it up - even though it is a crucial factor to the overall study of corporate fraud and exploitation. Anyway, be that as it may, that is not the subject of our discussion. Again, that subject is clearly stated on comment #1138059 and #1139718.

Thanks for your pass on the makes this researcher feel welcome.

Wed, 04/06/2011 - 01:48 | 1139876 I Am The Unknow...
I Am The Unknown Comic's picture

Once again, either clearly state your premeses or admit defeat.  I am STILL WAITING, AND I am STILL WAITING for you to answer my questions.  

Your post (#1138059) is nothing but a rant.  Clean it up and present it as an argument.  If you don't, or can't, then this is my last post to you and all I can say is piss off.  Last chance....make it good. 

Wed, 04/06/2011 - 02:02 | 1139889 Maniac Researcher
Maniac Researcher's picture

My argument has been clear from the beginning. Additionally, you need to reread my last post regarding my "answering your questions." Again, this is a transparent attempt to change the subject.

Also, your feeble attempt to turn this into a game where one "wins" or "loses" is irrelevant.

Piss off? that's all you have? Pathetic...and not worthy of ZeroHedge. At least Chumbawumba would have the stones to use a racial epithet...Here, let me help: Go fuck yourself.

Wed, 04/06/2011 - 02:25 | 1139910 I Am The Unknow...
I Am The Unknown Comic's picture

No it hasn't

No it isn't

"Go fuck yourself" is not a racial epithet you fucktard



Now, go PISS OFF!

Wed, 04/06/2011 - 13:52 | 1141850 Maniac Researcher
Maniac Researcher's picture

Good job misreading my last post. I was A) referring to the type of insult that would come from a ZHer, not from me and B) criticizing your own choice of insult. Like your peer tickhound, you don't deal well when the conversation has progressed to this stage. I get it, though - my last response pissed you off enough that you didn't read carefully.

Again, to restate my original points - The ZH community appears to be a bunch of armchair investment enthusiasts who whine about the corruption in the financial system. While this itself isn't a problem [or anything new] and this corruption surely exists on a massive and probably unprecedented scale, the irony of the ZH community in particular is that a bunch of self-interested, strongly libertarian individuals are crying foul at the harm this corruption will cause the world. Corruption is just another form of extreme self interest. This *matches* the ethos of ZHers, not opposes it.

What was the word I used to describe that? Oh yeah - assholes.

Perhaps you need to look up Libertarianism. Essentially it turns self interest into an ethos. See the correlation with the motivations of the banksters? [you don't have to admit it, I know you won't, Comic]

Second point: Any kind of "sounding the alarm to inform the masses of the horrible corrupt system" sound pretty shrill among all the nasty bile filled racism, misogyny, and bigoted comments that occur on ZH on a daily basis.

What was the word I used to describe that? Oh yeah - hypocrisy.

Extrapolate the rest on your own. And again, feel free to go fuck yourself :D

Wed, 04/06/2011 - 14:47 | 1142085 I Am The Unknow...
I Am The Unknown Comic's picture

"Perhaps you need to look up Libertarianism. Essentially it turns self interest into an ethos"

Wow, you are one messed up little fucker. 

You still have not created a logical argument. 

You fail.

Go back to hell where you came from and where you belong.

Wed, 04/06/2011 - 15:57 | 1142455 Maniac Researcher
Maniac Researcher's picture

Yes, I ripped on Libertarianism. And...? You've got nothing to respond with.

Fortunately for me, I care little about your assessment about the logic of my arguments. The only things you've managed to demonstrate in this "conversation" that A) you redirect things when you have nothing to add B) you become annoyed and emotional in the face of opposition C) You don't like having your opinions tested - which causes you to essentially repeat "go away" over and over again.

In response, I plan to continue to mercilessly berate you. Why? Because it A) helps me further articulate my original point B) It helps add the words "bigotry" and "assholes" to the Zerohedge google analytics/search terms C) it annoys the shit out of you

Please don't go. Let's continue this -- if my assessment of Libertarianism bothers you, why don't you provide your own definition of it then? You probably should do so since you criticized my definition without providing any reasoning of your own, which only makes you look [even more] ignorant. Please defend your ethos, if that is what you identify yourself with. It will make you a more substantive individual, I promise.

That, and it will be fun to gleefully deconstruct your failed ideology in front of your eyes, further causing you discomfort, anxiety, and existential angst. Yes, that will be quite amusing. Well, for me anyway.

Tue, 04/05/2011 - 15:42 | 1138249 Bad Lieutenant
Bad Lieutenant's picture

You offer fair points, but I think you're lumping everyone into one category.  What about those of us who are playing the devaluation of all global fiat?  We don't *wish* for a crash or crisis, but we know full well that what the US is doing is so unsustainable that we only have a short time left (6-18 months in my view).  I'd say we're defined by the fact that we hate like hell that the system is too far bent to be fixed, but we're not about to ignore what our intellect is saying and pretend like 1.5 trillion is going to fund itself without the printing of more Benny Bucks.

I've served as an officer on an attack submarine for this country.  I fucking kills me every time I read the lastest headlines of how corrupt and dysfunctional the system has become.  But goddam if I'm not going to make provisions for the shattered future the elite are in the process of handing America. 



Tue, 04/05/2011 - 15:59 | 1138362 dogismyth
dogismyth's picture

what do you attack with your submarine?  Or is that like one of those bullying things because your penis is too small?  lol...just joking.  There will be no fucking catastrophic economic collapse caused by the pigmen.  They seek to maintain (their) status quo and to keep you at your post performing corporate duties.  Why would the PTB seek to destroy civilization or increase the level of frustration?  If that were their choice, we would have never seen TARP and they would have let things crash.  The system has been corrupt for many centuries.  Nothing has really changed except for technology which allows us a closer seat to "the fight".  Change will occur when man changes his thinking and starts believing in things that he thought could not be changed. 

Why everyone worries about the economic tsunami is beyond me.  You should brush up on your science and pay attention to what is happening in the cosmos.  Your disaster waiting to happen is out there....and the PTB knows it!


Tue, 04/05/2011 - 15:22 | 1138192 SheepDog-One
SheepDog-One's picture

We dont plan on having a very long court session, just a minute or 2 while a rope is being thrown over a lamp post.

Tue, 04/05/2011 - 15:36 | 1138269 aheady
aheady's picture


Tue, 04/05/2011 - 16:09 | 1138395 chubbar
chubbar's picture

Or, alternatively,


Report from Iron Mountain unveils a hitherto top-secret report of a government commission that was requested to explore the consequences of lasting peace on American society. The shocking results of the study, as revealed in this report, led the government to conceal the existence of the commission--they had found that, among other things, peace may never be possible; that even if it were, it would probably be un-desirable, that "defending the national interest" is not the real purpose of war; that war is necessary; that war deaths should be planned and budgeted. REPORT FROM IRON MOUNTAIN tells the story of how the project was formed, how it operated, What happened to it. It includes the complete verbatim text of the commission's hitherto classified report.

". . . so elaborate and ingenious and so substantively original, acute, interesting and horrifying, that it will receive serious attention regardless of its origin."
--The New York Times"

Tue, 04/05/2011 - 14:14 | 1137887 Stoploss
Stoploss's picture

This shit is better than comedy central. Now, let's have a look at gold and silver.

Tue, 04/05/2011 - 14:19 | 1137920 Long-John-Silver
Long-John-Silver's picture

Both just went vertical again. We may see $40 Silver today.

Tue, 04/05/2011 - 14:58 | 1138091 Ray1968
Ray1968's picture

Does anyone know why PSLV and PHYS are down when SLV and GLD (along with the "real" metals) are up strong?

Tue, 04/05/2011 - 17:31 | 1138659 PRO.223
PRO.223's picture

Don't know, but was wondering the same thing.

Tue, 04/05/2011 - 14:19 | 1137891 randomq
randomq's picture


Tue, 04/05/2011 - 14:17 | 1137918 DavidC
DavidC's picture

No, no randomq! They're not up!

"Broad U.S. stock price indexes were about unchanged, on net, over the intermeeting period."

I'm just off to bash my head against a wall...


Tue, 04/05/2011 - 14:16 | 1137897 spiral_eyes
spiral_eyes's picture

aggregate demand (for junk paper nobody wants), bitchez!


Tue, 04/05/2011 - 14:16 | 1137902 randomq
randomq's picture

So we have a goldilock economy again?  Maybe the fed is right.  It would explain the large run up in stock prices.

Tue, 04/05/2011 - 14:15 | 1137903 AC_Doctor
AC_Doctor's picture

"Burn baby, burn" Survivorman 2005

Tue, 04/05/2011 - 14:17 | 1137906 John Law Lives
John Law Lives's picture

QE3 or no QE3?


Tue, 04/05/2011 - 14:33 | 1137992 tickhound
tickhound's picture
  • Almost all Fed officials saw no need to taper QE2 buying

    In other words... "we can't"

    Ray Charles saw this coming.

    Wed, 04/06/2011 - 00:22 | 1139754 baby_BLYTHE
    baby_BLYTHE's picture

    The money printer will continue to print, that I am sure

    Tue, 04/05/2011 - 14:15 | 1137907 hambone
    hambone's picture

    This statement not exactly dollar friendly.

    Tue, 04/05/2011 - 14:17 | 1137909 asdasmos
    asdasmos's picture

    "Sizable increases in prices of crude oil and other commodities pushed up headline inflation, but measures of  underlying inflation were subdued and longer-run inflation expectations remained stable."


     - Setting the stage for QE3..... "Nothing to see here, move along!"

    Tue, 04/05/2011 - 14:18 | 1137913 equity_momo
    equity_momo's picture

    Whatever. Gold and silver are giving Bernanke a Dirty Sanchez.Theyre humiliating him. 

    Transitory inflation! you clown.

    Tue, 04/05/2011 - 14:20 | 1137930 spiral_eyes
    spiral_eyes's picture

    "there's nothing more permanent than things called temporary"

    - nassim taleb

    Tue, 04/05/2011 - 14:17 | 1137917 TruthInSunshine
    TruthInSunshine's picture

    Bernanke is punk rocker, bitchez.

    These minutes are hilarious. A Monte Python scene could be masterfully crafted from the content of this incredibly deep and vast joke that is the FOMC discussion.

    Tue, 04/05/2011 - 14:43 | 1138029 Cash_is_Trash
    Cash_is_Trash's picture

    John Cleese and the Ministry of Silly Walks could run the economy better too.

    Tue, 04/05/2011 - 15:41 | 1138293 aheady
    aheady's picture

    If I Were Not in the C.I.D. --

    Tue, 04/05/2011 - 14:18 | 1137922 sundarb
    sundarb's picture

    No need to taper, meaning they're going to abruptly stop buying Treasuries?

    Well, headed for a abrupt market crash then.

    Tue, 04/05/2011 - 14:22 | 1137942 whatsinaname
    whatsinaname's picture

    Housing prices need to drop another 30 % to open their eyes ?

    Tue, 04/05/2011 - 22:53 | 1139597 Rula Lenska
    Rula Lenska's picture

    You talk like a homeowner.  Housing needs to drop another 30% period.  That bubble never burst (just a little air escaped when the liar loans imploded) and is being artificially propped up just like the market and bank balance sheets.

    Tue, 04/05/2011 - 14:35 | 1137950 hambone
    hambone's picture

    you are describing a market crash but also a collapse of the US to fund it's programs...absent Fed buying the now $5T in annual T's, interest rates to the moon and fiscal callamity (no need to go to Greece, if the Fed stops buying, Greece will have come to America).

    Not sure I believe this is what Fed and TPTB want...not saying it's not possible, but seems unlikely.

    Wed, 04/06/2011 - 00:22 | 1139757 baby_BLYTHE
    baby_BLYTHE's picture

    So the Bernank has the long-end all under control? 

    Get ready for higher interest rates and double-digit price inflation by the time Obummer leaves office

    Tue, 04/05/2011 - 15:04 | 1138129 css1971
    css1971's picture

    Cold Turkey man! It's the only way!


    Tue, 04/05/2011 - 15:51 | 1138329 youngman
    youngman's picture

    this is amazing....what are they thinking...that all of a sudden..everyone is going to buy these treasuries at extremely low interest rates...come on...and these guys are educated...the closer this date gets..the more tension in the markets...I am in silver and gold...100%..I see no other option....this is going to fall and fall hard and fast...

    Tue, 04/05/2011 - 14:18 | 1137926 sbenard
    sbenard's picture

    Crude oil is moving powerfully higher on this news. More dollar destruction, at least through the end of June (and beyond).

    Tue, 04/05/2011 - 15:21 | 1138188 dogismyth
    dogismyth's picture

    powerfully higher? are you watching a nanosecond chart or something? get a clue...please!

    Tue, 04/05/2011 - 14:24 | 1137927 bob_dabolina
    bob_dabolina's picture

    It's quite incredible really how fucked they made it.

    Who here can name a time when we have had such violent commodity inflation but flat housing?

    You think they are going to stop puchasing? How? Who will buy our Treasuries? who will buy our houses? who will buy our debt? No one. They aren't just the biggest lender of last resort...they are the ONLY lender of any kind of resort. PIMCO is out, Buffet is out, Schiff, Faber (thinks owning them will end your life) China is getting's game over QE infinity.

    QE won't end.

    Tue, 04/05/2011 - 14:51 | 1138052 A Man without Q...
    A Man without Qualities's picture

    Who here can name a time when we have had such violent commodity inflation but flat housing?

    1973/ 74?

    I suspect they realize the mess they are in.  

    This is what empires look like when they have reached their last days.  Only way to pay the bills is to debase the currency, corruption is rampant among the elite, those without privilege have little hope of bettering their lives, the military is bloated and overstretched attempting to maintain Pax Americana in far-flung outposts, politicians no longer talk of how to better their nation, but simply plot to find ways to line their pockets.

    Tue, 04/05/2011 - 15:22 | 1138193 Yardfarmer
    Yardfarmer's picture

    @ A Man without a nutshell! well said.

    Tue, 04/05/2011 - 14:21 | 1137928 bbq on whitehou...
    bbq on whitehouse lawn's picture

    Lets hold hands and sing.


    Tue, 04/05/2011 - 14:20 | 1137929 DavidC
    DavidC's picture

    Subtext - "As things are getting so much better and the stock market has not moved up, we're going to continue with QE2 because that's what the market seems to have been expecting."

    Words fail me.


    Tue, 04/05/2011 - 14:21 | 1137933 DarthVaderMentor
    DarthVaderMentor's picture

    I like these unanimous votes. It'll make it easier when the warrants get issued.

    Tue, 04/05/2011 - 14:26 | 1137958 sdmjake
    sdmjake's picture


    Tue, 04/05/2011 - 14:38 | 1138005 Dr. Engali
    Dr. Engali's picture

    Much to my chagrin there will never be any warrants. Have you seen any yet in the biggest heist in history? No ...the populace is too stupid.

    Tue, 04/05/2011 - 14:48 | 1138049 Cash_is_Trash
    Cash_is_Trash's picture

    Also, there won't be a country in 20 years.

    Not the way we used to know it; as a place of wealth and good standard of living.

    Tue, 04/05/2011 - 14:23 | 1137936 The Answer Is 42
    The Answer Is 42's picture

    Time to fade gold, all commods, and short the equities. Assuming no global blackswan before 6/30, which is of course always possible, there's no way they can do QE3.

    Tue, 04/05/2011 - 14:40 | 1138014 notadouche
    notadouche's picture

    "there's no way they can do QE3."  That should tell you all you need to know.  They will indeed do the impossible.  To follow this government you have to think contrary to conventional wisdom, common sense or whatever you want to call it.  They will do QE as long as unemployment is unacceptible and corporate profits rise due only to lay offs or tax planning.  I think the Bernank has said as much in many speeches over the last year.

    Tue, 04/05/2011 - 15:25 | 1138207 Yardfarmer
    Yardfarmer's picture

    @ 42

    !!!!????possibly wrong on all counts. are you serious?

    Tue, 04/05/2011 - 15:30 | 1138238 The Answer Is 42
    The Answer Is 42's picture


    Tue, 04/05/2011 - 15:31 | 1138240 tmosley
    tmosley's picture

    The question is how much money this guy will have in his bank account this time next year.

    Tue, 04/05/2011 - 14:23 | 1137938 TruthInSunshine
    TruthInSunshine's picture

    Currently, the unemployment rate remains elevated, and measures of underlying inflation continue to be somewhat low, relative to levels that the Committee judges to be consistent, over the longer run, with its dual mandate. The recent increases in the prices of energy and other commodities are currently putting upward pressure on inflation. The Committee expects these effects to be transitory, but it will pay close attention to the evolution of inflation and inflation expectations.


    Translation - Bernanke wants more inflation, but if it comes in too high (impossible, but bear with him), he'll be on it in 15 minutes.

    Epic humor, that right there...


    Tue, 04/05/2011 - 16:17 | 1138411 Troublehoff
    Troublehoff's picture

    The FED has to say it wants inflation because it has no choice but to create inflation.

    At least this way people think that somebody somewhere is in control of this mess.

    Tue, 04/05/2011 - 14:22 | 1137944 sbenard
    sbenard's picture

    Their logic escapes me! If things are really better, where's the need? This is a tacit, unspoken admission on their part, that they know very well things are still in the tank!

    Tue, 04/05/2011 - 14:35 | 1137988 DavidC
    DavidC's picture

    Ah, you know that and we know that and they know that - but nobody else does!


    Tue, 04/05/2011 - 14:28 | 1137947 tallen
    tallen's picture

    Come on, did anyone actually think they were gonna end it early? (Except watchers of the Ministry of Truth - CNBC).


    CNBC still spreading its hatred of gold/silver, bubble blah blah. To say the Fed expanded the monetary base at the fastest rate ever, gold and silver should continue to rally.

    Will the US every go bk on it's debt? No. What president will have the biggest recession in history on his name. Instead, lets go rage wars in other countries with the hope we can get in on the rebuild. Come on, how easy is it to send a drone in to fire a big ass missale at the leader. Instead we have to always go full retard and just invade. 

    Bring on QE3,4,5,6,7..... already. This is so fun. All Aboard!


    Tue, 04/05/2011 - 14:41 | 1138021 notadouche
    notadouche's picture

    The best thing to do is to turn off CNBC.  I've done it and it has done wonders for my portfolio and my mental health.  Just Do It.  It frees your mind!

    Tue, 04/05/2011 - 22:58 | 1139610 Rula Lenska
    Rula Lenska's picture

    Tallen: Howard Beale called; he wants his avatar back.

    Tue, 04/05/2011 - 14:24 | 1137951 randomq
    randomq's picture

    The market can't go down.  They fed will print enough money until it goes up.  So somewhere there will a bubble, then a crash.  Maybe in gold in silver.

    Tue, 04/05/2011 - 14:34 | 1137999 DavidC
    DavidC's picture

    I thought we are in a bubble now - except we can't be because the Fed says we're not and we know how good they are at spotting bubbles, just ask Alan 'Prove me wrong' Greenspan...


    Tue, 04/05/2011 - 14:25 | 1137956 carbonmutant
    carbonmutant's picture

    These are the same guys who didn't see the housing bubble as a problem.

    Trust me...

    Tue, 04/05/2011 - 14:28 | 1137964 TruthInSunshine
    TruthInSunshine's picture

    Video compilation of The Bernank's prior forecasting track record:

      Bernanke 2005-2007 a video compilation
    Tue, 04/05/2011 - 14:34 | 1137974 bob_dabolina
    bob_dabolina's picture

    They saw it.

    I have the 284 page .pdf

    They saw it clear as day and they lied about it to manage our expectations.

    It's public info you just have to go through it on the federal reserve website.


    Tue, 04/05/2011 - 15:32 | 1138244 Bicycle Repairman
    Bicycle Repairman's picture

    Somewhere in the late 1990s (I do not have any corroboration) Greenspan gave a speech where he said explicitly that he intended to create a housing bubble.

    Tue, 04/05/2011 - 14:27 | 1137967 hognutz
    hognutz's picture

    "No one could have seen it coming! No one........"

    Tue, 04/05/2011 - 14:33 | 1137972 FunkyMonkeyBoy
    FunkyMonkeyBoy's picture

    Americans everywhere should raid their monopoly board game sets now and use the monopoly money in there as legal tender...

    .... seriously, monopoly money has kept it's value better over the decades than that $dollar sh*t that the Bernanke is robbing you with. The transfer of wealth from the many to the few continues unchecked and unchallenged.

    Tue, 04/05/2011 - 14:32 | 1137979 Global Hunter
    Global Hunter's picture

    important stuff like fuel and food is going through the roof we call this headline inflation but useless products that nobody needs, we call this "core inflation" and its stable.   

    Tue, 04/05/2011 - 14:46 | 1138043 Dr. Engali
    Dr. Engali's picture

    I had an ipad for lunch. It was kinda dry..a little on the crunchy side.. but it was edible. And thanks to hedonic regression I got more ipad for my money. Therefore I am fuller and more satisfied.

    Tue, 04/05/2011 - 14:51 | 1138051 TruthInSunshine
    TruthInSunshine's picture

    I put housing in my gas tank.

    Tue, 04/05/2011 - 14:36 | 1138007 web bot
    web bot's picture

    Crammmmer on CNBC just said that Tiny Tim should issue a 30 year, $500Billion to keep the IMF away. Holy #uck, what's going on with people's heads?

    Youri, please speak up!

    Tue, 04/05/2011 - 15:53 | 1138332 Note to self
    Note to self's picture

    What's going on with people's head?  Two words: radiation.

    Tue, 04/05/2011 - 14:44 | 1138013 Cdad
    Cdad's picture

    CEO John Chambers considering job cuts at Cisco.  I'm guessing that some enterprising criminal syndicate Wall Street banker is about to come forth with comments about why this is good news for the economy.



    Apple now resumes its downward trajectory.  As a reminder, the rumor is that people are buying Apple...not selling it...even though a lot of them have to sell the shares on the QQQ re-balance.  Just re-posting as a reminder that you should not believe what your lying eyes are seeing right now because of that rumor reported over at the BlowHorn [CNBC].

    Tue, 04/05/2011 - 14:49 | 1138042 TruthInSunshine
    TruthInSunshine's picture

    Dude, you have to go over your TPS reports.

    Selling causes stocks to rise now - there is just a lag. That's all.

    Tue, 04/05/2011 - 15:01 | 1138096 Cdad
    Cdad's picture

    Sorry dude.  I did not get the memo about selling making stocks rise.  Suppose I missed the announcement that job layoffs increase employment, too.

    I guess I should find a Newspeak online class, or better understand how the wholesale liquidation of Apple calls is bullish...somehow.




    Tue, 04/05/2011 - 15:05 | 1138126 TruthInSunshine
    TruthInSunshine's picture

    No apology necessary, brother.

    We're in the new economy now, also known as the mushroom economy, where we're fed shit and kept in the dark.

    I come here to get a better diet.

    Tue, 04/05/2011 - 15:15 | 1138166 Cdad
    Cdad's picture

    It is comforting to know that I am somehow just confused by old notions.  I like Newspeak, shit, and sitting in the dark.  

    However, as I watch what is happening to guys trying to get a price for their Apple calls, I remain confused by old notions.  I wonder...are they saying that call side options junkies are going to be bailed out or something.  It's an old notion that I have that when you are wrong, your positionis sold into oblivion and you lose your principle...which seems to be happening on Apple even though someone named Courtney over at the BlowHorn [CNBC] says that the rumor is that people are buying Apple based on a rumor she picked up from some criminal syndicate Wall Street bankers.  

    But man...the UnicornDew supply sure is skyrocketing...which, I guess, in the new economy means strong pricing...right?

    Tue, 04/05/2011 - 15:56 | 1138341 TruthInSunshine
    TruthInSunshine's picture

    My order book for unicorn horns (from whence Bernank's pixie dust is made) has never been more solid.

    I have you to thank for starting a Unicorn Ranch and planting gold & silver saplings on the ungrazed portion of my property (though the unicorns get Skittles & Earl Grey Tea once a day).

    I sure hope the POMO continues indefinitely.

    I'm going to stop at Whole Foods and get some iPad Helper on the way home.

    Tue, 04/05/2011 - 14:39 | 1138017 Milton Waddams
    Milton Waddams's picture

    Bye bye QE:

    Several of them indicated, in light of recent developments, that the risks to their forecasts of inflation had shifted somewhat to the upside. Finally, a few participants noted that if the large size of the Federal Reserve’s balance sheet were to lead the public to doubt the Committee’s ability to withdraw monetary accommodation when appropriate, the result could be upward pressure on inflation expectations and so on actual inflation.

    Fed is going to demostrate to the public that it has the ability to withdraw monetary accomodation in two months.  The training wheels are coming off kids!

    Tue, 04/05/2011 - 14:45 | 1138032 hambone
    hambone's picture

    Mr. Waddams,

    if this is your expectation - what is your expectation for T rates?  The subsequent increase in interest costs?  Absent the Fed, the need to roll $3T and buy $2T new annually will suck all air out of the market...somebody que the meatballs vacuum...

    Tue, 04/05/2011 - 14:59 | 1138100 Milton Waddams
    Milton Waddams's picture

    I could see the 10-year trending toward 5 to 5.5%, which was basicly the low point for most of the 1990s.  Remember that ending QE does not mean the Fed stops POMO. It just means that the large scale purchases, which have served to restore the Fed's holdings of Treasuries to precrisis levels and are therefore no longer necessary, ends.

    Tue, 04/05/2011 - 15:16 | 1138175 Johnny Lawrence
    Johnny Lawrence's picture

    Everyone is calling for yields to increase.  Everyone.

    What do they say about when everyone agrees?

    Tue, 04/05/2011 - 15:24 | 1138190 hambone
    hambone's picture

    I have a difficult time forseeing such a pedestrian rise - yeah, Fed will maintain it's balance sheet for those running off in maturity but that is relatively minor...there is still a gap of $100+ billion to be absorbed by the market that Fed was previously soaking up.  Not sure at 3.5% or 4.5% or 5.5% if folks feel confident enough to pull assets from elsewhere and plough into T's.  Seems Bill Gross sure expects a major uptick in T's, enough so to get completely out - possibly in anticipation of significantly better yields on a re-entry point?  Fuck if I know.

    Only thing I do know is that gold, silver, etc. are not positioned for a deflationary world where not nearly enough dollars exist to pay debts.

    Tue, 04/05/2011 - 16:22 | 1138420 Johnny Lawrence
    Johnny Lawrence's picture

    Another way to look at it..

    Yields were not expected to rise when the Fed launched QE2, but they did.  Why wouldn't the opposite happen if QE programs end?

    Also, if you notice on days (the very few days) when the market has a steep drop, bonds rally.  Sample size is obviously small at this point, but you've seen a flight to the classic safe-haven of bonds when the market is down big.  A possible hint of what will happen when the equity market collapses this time?

    Lastly, if you're a contrarian, there isn't a more despised asset class right now than bonds.  The big brokerage firms don't like them.  The 'tin-foil hat' crowd doesn't like them.  Nobody likes them.


    Tue, 04/05/2011 - 18:02 | 1138782 hambone
    hambone's picture

    Being a contrarian at this point of time is mighty dangerous. 

    You are right that if liquidity truly dries up (and isn't expected to return in a months time w/ the next edition of lets play QE) then T's at 4% would be very attractive.  Also interesting to note that Pimco sold all it's T holdings without a rise in yields?  Only way to move significant #'s of buyers back toward T's at anything close to these rates w/out the POMO flip option, two criteria need be met:

    1) risk off in equities and other high yielding investments - market crush

    2) people need to believe Fed will not print them into oblivion w/ subsequent QE or alternate inflationary means.

    I really don't see either as overly likely at this point but the 2nd seems really far fetched. 

    However, you seem to be saying that Pimco sold high and plans to buy back higher?  Not how Bill rolls.

    my 2 cents

    Wed, 04/06/2011 - 09:32 | 1140412 Johnny Lawrence
    Johnny Lawrence's picture

    Good points, and understood.  I do think #1 is very likely to happen.  I do believe the equity market is going to get crushed (look at what happened to the rallies during the Great Depression and 1990s Japan - new lows after the initial crash were eventually established).  I also think the crush is going to be so severe that it will take care of some of the inflations worries we have.  Lots of speculative money has poured into commodites and I think lots of will exit on a market crash.

    So you could say that the above scenario would be bullish for bonds.

    Tue, 04/05/2011 - 14:46 | 1138033 hambone
    hambone's picture


    Tue, 04/05/2011 - 14:40 | 1138018 gabeh73
    gabeh73's picture

    Just two short months prior to 9/11, then Defense Secretary Donald Rumsfeld oversaw a significant change to DoD procedures for dealing with hijacked aircraft, making it the personal responsibility of the Defense Secretary to issue intercept orders.

    Commanders in the field were stripped of all authority to act.

    The document, Chairman of the Joint Chiefs of Staff Instruction CJCSI 3610.01A (dated 1was issued for the purpose of providing “guidance to the Deputy Director for Operations (DDO), National Military Command Center (NMCC), and operational commanders in the event of an aircraft piracy (hijacking) or request for destruction of derelict airborne objects.”

    June 2001)

    The new instruction, signed by S.A. Fry (Vice Admiral, US Navy and Director, Joint Staff) superseded previous procedures put into place in 1997.

    This document states that “In the event of a hijacking, the NMCC will be notified by the most expeditious means by the FAA. The NMCC will, with the exception of immediate responses as authorized by reference d, forward requests for DOD assistance to the Secretary of Defense for approval.”

    Reference d refers to Department of Defense Directive 3025.15 (Feb. 18, 1997) which allows for commanders in the field to provide assistance to save lives in an emergency situation — BUT any requests involving “potentially lethal support” (including “combat and tactical vehicles, vessels or aircraft; or ammunition”) must still be approved by the Secretary of Defense. So again, the ability to respond to a hijacking with intercept orders was removed from commanders in the field.

    Of course, on 9/11 no such intercept orders were issued to NORAD, and three of four hijacked airliners were able to hit their targets with precision accuracy, paving the way for literal modern military crusade into the middle east, and now into Africa.

    In his book, Ventura analyses the document, now known the 9/11 stand down order, and investigates whether it was part of a deliberate plot to prevent the US military from responding in a timely fashion to defend America from the most deadly attack in its history.

    Tue, 04/05/2011 - 14:45 | 1138039 JR
    JR's picture

    Ah, the FOMC – a cross section of America – all members of the Wall Street and academia complex, almost all Keynesians and inflationists.  To introduce just one at the time of her Obama appointment:

    Sarah Bloom Raskin, 49 
    Maryland Commissioner of Financial Regulation (Aug 2007 to present) 
    Prior positions: Managing Director, Promontory Financial Group; General Counsel, Worldwide Retail Exchange; General Counsel, Columbia Energy Services Corp; Counsel, Senate Banking Committee; Staff, Federal Reserve Bank of New York; Staff, Congress's Joint Economic Committee 
    Education: Harvard Law School, J.D.; Amherst , B.A. (Economics).

    And Sarah’s husband, Jamie (From Wikipedia, the free encyclopedia)

     Jamie Raskin… is an American law professor and politician. He teaches at American University, Washington College of Law, in Washington, D.C. He won the race for Maryland State Senate in District 20

    Here’s part of the Raskin bio from the Jamies Raskin for State Senate 06 website:

    Jamie Raskin is a professor of constitutional law at American University and a public-interest attorney whose clients have included Greenpeace, the Service Employees International Union, thousands of Native Americans suing the federal government over mismanagement of Indian lands, students at Blair High School in Silver Spring, the tenants of 641 Houston Avenue in Takoma Park, and the people of Washington, D.C.


    A lifelong progressive Democrat, Raskin has brought innovative ideas and a hands-on approach to government and politics at every level.

    He has served on the Montgomery County Hate Crimes Commission, the Takoma Park Election Redistricting Task Force, and the Takoma Park Gun Policy Task Force. From 1998 to 2005, Raskin served as the chairman of Montgomery County State’s Attorney Doug Gansler’s campaign committee, where he helped develop the community-based prosecution plan now in effect in Montgomery County.

    In 1999, Governor Parris Glendening tapped Raskin to become the first Chairman of the Maryland State Higher Education Labor Relations Board, which the legislature created to secure the right to organize on campus. Under Raskin’s leadership of the Board, thousands of employees at institutions of higher learning in Maryland achieved collective bargaining rights for the first time in state history.

    Raskin has earned national recognition as a voice for democracy, and as a civil-rights and civil-liberties advocate. In 1992, he served on President Clinton's Justice Department Transition Team for the Civil Rights Division. He was elected as a Kerry-Edwards Delegate to the Democratic National Convention in 2004. He currently serves on the advisory board of Progressive Democrats of America…

    He has worked closely with Rep. Jesse Jackson, Jr. to advance a voting rights amendment in Congress, and with Rep. Eleanor Holmes Norton to advance a voting rights agenda for the people of Washington, D.C…

    Raskin has built a reputation as an innovator whose ideas gain traction. His 2000 article for Slate magazine introduced the idea of Internet “vote trading” in the 2000 election, to convince Ralph Nader supporters in swing states like Florida and Wisconsin to vote for Vice President Al Gore, and to have equal numbers of Democrats vote for Nader in Republican states such as Texas and Alabama. This tactic picked up at least 35,000 votes for Gore in swing states before Republican State Attorney Generals and Secretaries of State threatened criminal prosecution of the Web site organizers…

    Tue, 04/05/2011 - 14:53 | 1138071 vote_libertaria...
    vote_libertarian_party's picture

    There assessment of the economy would be a lot different if they would just reduce the results by the growth in deficit spending.


    +60B in GDP growth - $450B in deficit spending = -$390B in 'growth'


    +60B vs. -390B....looks a little different



    Tue, 04/05/2011 - 14:54 | 1138072 Dollar Bill Hiccup
    Dollar Bill Hiccup's picture

    Listening to the FED is reminiscent of George Carlin's weather report :

    Weather forecast for tonight: dark. Continued dark overnight, with widely scattered light by morning.


    Tue, 04/05/2011 - 14:54 | 1138073 abbottmd
    abbottmd's picture

    reason #356 to rally: more weakness, therefore QE3, therefore risk on

    Tue, 04/05/2011 - 15:02 | 1138123 AldoHux_IV
    AldoHux_IV's picture

    "The staff revised up its projection for consumer price inflation in the near term, largely because of the recent increases in the prices of energy and food. However, in light of the projected persistence of slack in labor and product markets and the anticipated stability in longterm inflation expectations"

    Translations: people can't afford things as much now, but because wages and hours worked are weak they won't be able to afford more things anyways. Makes about as much sense as saying the whore sleeps with a lot of men, but because a lot of men have slept with her, man's willingness to sleep with her will remain subdued.

    According to the fed, everyone sees inflation in a dollar denominated world except them.  These guys continue to surprise me in just how retarded they can get-- I mean the audacity of these fucking scum... well here's to the eventual end of the fed.


    Tue, 04/05/2011 - 15:14 | 1138170 Johnny Lawrence
    Johnny Lawrence's picture

    Counterpoint: A friend of mine runs a big Macy's store in the Boston area.  She says that business is strong and people are spending money again.


    Tue, 04/05/2011 - 15:25 | 1138211 dogismyth
    dogismyth's picture

    Its true from what I see.  Traffic is snarling once again where I live.  Restaurants are always filled and so are shopping centers.  Also noticed a decrease in WalMart activity which could mean people are vying for higher priced quality items from places like Macy and Targets.  There are a few empty buildings remaining that are for lease but most others are now occupied.  I see virtually no recessionary effects besides the school districts and cities wanting more moneys to continue nominal operations.

    Apparently, everything is OK!!  (wink)

    Tue, 04/05/2011 - 15:37 | 1138245 hambone
    hambone's picture

    Business is better - really can't deny that we are not in a depression.  It's the means to avoid that depression and the durability, sustainability, and the side effects of those policies that have so many worried. 

    Many business' are having a better year - but inflationary pressures are now getting very serious for producers (I work for one of the largest corporations in my industry and pricing hits are beyond our ability to adapt to any longer...just taking hits and raising prices where we can).  Retail must and is raising prices accross the board.  However, incomes are not rising to be able to deal w/ this increase.  Means lower sales volumes coming.  Plus quality of new jobs of lesser quality than those lost. 

    Governental debt is about to swamp the boat and can only be dealt w/ via continued massive printing or else T rates spike severely and destroy what semblance of order still exsits in the governments budget (rate increase from 3.5 to 7% would add somewhere in the neighborhood of $500B annually).  If Fed keeps printing inflation swamps the boat...if Fed stops printing deflation (not enough dollars to buy up all the T's, equities, etc.) swamps the boat.  Sitting on the edge of a knife now.

    Tue, 04/05/2011 - 15:28 | 1138221 SheepDog-One
    SheepDog-One's picture

    Macys here in Denver just closed.

    Tue, 04/05/2011 - 15:38 | 1138267 Bicycle Repairman
    Bicycle Repairman's picture

    Boston is in better shape than most of the USA.

    Tue, 04/05/2011 - 15:48 | 1138315 Mike2756
    Mike2756's picture

    They've been spending, question is: when will the price increases begin to bite?

    Tue, 04/05/2011 - 16:33 | 1138464 dogismyth
    dogismyth's picture

    i think its just the deflation/inflation seesaw that is used to float the economy to a softer landing.  IMO...natural events (weather, earthquakes, CMEs, cosmic radiation) will be the driver behind increases in commodity prices (along with population growth of course).

    Tue, 04/05/2011 - 15:29 | 1138236 tek77blu
    tek77blu's picture

    Keep the QE coming, all it will do is establish higher floors for gold and silver. The dummies wont stop until they break the entire dish collection.

    Tue, 04/05/2011 - 15:41 | 1138279 Tall Tree Man
    Tall Tree Man's picture

    Another thing to note - the Fed returns the interest it earns
    on its balance sheet assets to the Treasury.

    So on $2T - say at 3%, it would return $60 billion back to the
    Treasury every year - in one giant circular account.  


    Tue, 04/05/2011 - 15:41 | 1138280 youngman
    youngman's picture
  • "Almost all Fed officials saw no need to taper QE2 buying"
  • saw no they saw no way to stop....really..who is going to come in to take up their one at least until it pays 30% or so..and has a gold backing...or Rocky Mountain National park as collateral...
  • Tue, 04/05/2011 - 16:56 | 1138537 abbottmd
    abbottmd's picture

    Their saying they don't need to taper QE2 seems to be saying that it hasn't had an effect on asset prices, because if it had, then it seems like no-brainer they'd need to taper. But since when do they tell the truth about anything anyway? it's all a fraud. A big game of three card monte

    Tue, 04/05/2011 - 16:56 | 1138546 abbottmd
    abbottmd's picture

    Their saying they don't need to taper QE2 seems to be saying that it hasn't had an effect on asset prices, because if it had, then it seems like no-brainer they'd need to taper. But since when do they tell the truth about anything anyway? it's all a fraud. A big game of three card monte

    Tue, 04/05/2011 - 16:48 | 1138516 tony bonn
    tony bonn's picture

    sorry news for all of you predicting the demise of qe2 (really qe3)....

    the sacking of rome continues....


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