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QE3 Off? Bernanke Says Fed Not Prepared To Take Action At This Point

Tyler Durden's picture


When in doubt, baffle them with male cow manure: Bernanke Says Fed Not Prepared to Take Action at This Point, but, Bernanke Says Recovery 'Still Rather Fragile'. Is Bernanke finally channelling his inner Greenspan. Oh, and just in case the Moody's threat was missed, Bernanke adds that a US default would trigger a crisis and would lead to "chaos." Will someone just give the president a three-page termsheet already.


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Thu, 07/14/2011 - 10:38 | 1455938 Ahmeexnal
Ahmeexnal's picture

"when she says no it means yes"

Thu, 07/14/2011 - 10:39 | 1455943 Nolsgrad
Nolsgrad's picture


Thu, 07/14/2011 - 10:48 | 1455977 TheTmfreak
TheTmfreak's picture

Its real simple. This isn't anything new. He has stated, and I believe him (wow), that if there is not growth, and we're looking at deflation, he/they will act. I think its pretty safe to say, deflation is absolutely guarranteed without more credit pumping and money printing (oh wait its not money printing, its reserves). Therefore, yes, there will be a "qe+."

Thu, 07/14/2011 - 11:02 | 1456040 GetZeeGold
GetZeeGold's picture


A no from a snake always means yes.


Thu, 07/14/2011 - 11:12 | 1456077 nope-1004
nope-1004's picture

I'm not prepared to buy groceries or fill my tank with gas, "at this point".

But, my survival dictates that eventually I will HAVE TO.  So it is with Benocide.

Just a matter of semantics. 

Thu, 07/14/2011 - 11:34 | 1456108 66Sexy
66Sexy's picture

Well said.

Bernake has already greenlighted QE and the debt ceiling raise.. This is all posturing.

If the FED were doing QE now, they'd do it.

It's all about jobs. The unemployment situation wont improve, and that is the marker he uses.

He is just keeping his options open, and if he affirmed QE readiness, it's the same as doing it.

By "Not prepared", he means he still has to go to his computer and double click the "create money" icon.

And how much credibility do we want to assign a Federal Reserve Chairman who says gold isnt money?

Thu, 07/14/2011 - 12:38 | 1456492 JuicyTheAnimal
JuicyTheAnimal's picture

By "not prepared" I think he meant he can't do until the clowns finish their debt ceiling circus.  

Thu, 07/14/2011 - 12:48 | 1456524 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

Those of us that totally called theis yesterday must be feeling mighty smart now!

QE3 is backed into the cake - but ye didn't think they were going to just tell you they were going to do it and roll on from QE2 did ya?!??!

They'll have to have a crash first - and even then it'll be QE2.5, QE2.56 etc etc

never take what he says at face value, and be careful of being long PMs right now - but feel free to stack physical in small increments

Thu, 07/14/2011 - 11:03 | 1456044 SheepDog-One
SheepDog-One's picture

OK, well Im still waiting for the deflation to appear anywhere in the markets which sit near all time highs.

Thu, 07/14/2011 - 11:13 | 1456092 TheTmfreak
TheTmfreak's picture

None of which has to do with the propping up of central monetary policy, such as "printing" money?

Thu, 07/14/2011 - 10:40 | 1455940 virgilcaine
virgilcaine's picture

End the Fed. The time has come.

Thu, 07/14/2011 - 11:35 | 1456205 Oracle of Kypseli
Oracle of Kypseli's picture

The FED is ending itself anyway. There is chaos already you don't have to not raise the debt ceiling for that. 

All O'Bummer needs to do is spend 7% of GDP to maintain the survival of the unfortunate and the unemployed and prevent them from pitchforking him until 2012 and he is home free. Sad

Thu, 07/14/2011 - 10:40 | 1455944 euphoria
euphoria's picture

Its a trap!

Thu, 07/14/2011 - 10:59 | 1456028 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Confusing the rational consumer!  Genius!

Thu, 07/14/2011 - 10:40 | 1455945 Dreadker
Dreadker's picture

Its all part of his "No Stock Left Behind" policy

Thu, 07/14/2011 - 10:44 | 1455964 Dick Darlington
Dick Darlington's picture

lol +1

Thu, 07/14/2011 - 10:42 | 1455948 qussl3
qussl3's picture

Banana Ben basically said until you dweebs panic like Jul/Aug 2010, no sugar for you.

Realization is a very horrible thing.

Thu, 07/14/2011 - 12:25 | 1456416 Bob
Bob's picture

Idiots shouldn't have priced that shit in . . . unless they were also positioning for the fast ride down.  Which, of course, they had to be doing.  We might have some fun ahead!

Thu, 07/14/2011 - 10:41 | 1455950 Dick Darlington
Dick Darlington's picture

And still equities stay on green. Sackman is gonna be late for dinner tonight, he has helluva lot of "buying" to do...

Thu, 07/14/2011 - 10:41 | 1455951 silvertrain
silvertrain's picture

he can just ban all short selling..

Thu, 07/14/2011 - 10:41 | 1455952 oogs66
oogs66's picture

maybe he got b*tch slapped last night and told no one believe QE helped jobs...stocks, yes, but jobs, NO!  and inflation ain't transitory

Thu, 07/14/2011 - 10:42 | 1455954 Quintus
Quintus's picture

Yesterday's hints at QE3 dropped the DXY back to where he wanted it, no need to overdo it.  

Thu, 07/14/2011 - 10:49 | 1455983 Bay of Pigs
Bay of Pigs's picture

Trying to wean the markets off the "strong dollar" policy?


Thu, 07/14/2011 - 10:42 | 1455955 Bearish News
Bearish News's picture

Attempt to stamp out the run in precious metals.

Thu, 07/14/2011 - 10:57 | 1456009 augie
augie's picture

lol little more than an attempt. It's going to be so funny watching the entire exchange burn while i'm laying in my bathtub full of silver, doing the breast stroke a-la Scrooge McDuck. 

Thu, 07/14/2011 - 11:27 | 1456159 Frog-And-Toad
Frog-And-Toad's picture


Thu, 07/14/2011 - 12:27 | 1456439 Bob
Bob's picture


Thu, 07/14/2011 - 10:56 | 1456014 Cash_is_Trash
Cash_is_Trash's picture

The flipside is that you have more metal for your ever worthless paper.

Bernank, reassure the market for I still have much metal to accumulate!

Thu, 07/14/2011 - 10:42 | 1455960 ThoughtCriminal
ThoughtCriminal's picture

"Not prepared to take action at this point", however, at a point right after conclusion of this testimony is a different story.

Thu, 07/14/2011 - 10:58 | 1456027 Cash_is_Trash
Cash_is_Trash's picture

Duly noted TC, for a point has no area.

Therefore, the point would rather be a parameter, between say, August and November.

Education - it's what's for dinner.

Thu, 07/14/2011 - 10:43 | 1455963 lolmao500
lolmao500's picture

Not only Moody's threat but SP's too... SP : miss any payment on anything and you get downgraded.

Standard & Poor's has privately told U.S. lawmakers and top business groups that it might cut the U.S. credit rating if the government fails to make any of its expected payments -- including Social Security checks -- even if it makes all its debt payments, the Wall Street Journal reported citing people familiar with the matter.

Thu, 07/14/2011 - 10:53 | 1456002 DosZap
DosZap's picture

GOOD for S & P.....................

Do it you lying scum, I hate no man,but despise this one, and his minions.

Esp the imposter at 1600.

They will all roast in hell.

Thu, 07/14/2011 - 10:46 | 1455969 lolmao500
lolmao500's picture

S&P: We'll Drop U.S. Debt Rating From AAA to D in August

Please do it?

Thu, 07/14/2011 - 11:01 | 1456034 augie
augie's picture
Thu, 07/14/2011 - 12:17 | 1456394 Urban Redneck
Urban Redneck's picture

Does S&P still sell ratings? 

I'd pay my comparatively meager M0 of hard earned money to see that (CHF, Au, or Ag - their choice).

Thu, 07/14/2011 - 10:47 | 1455973 HL Shancken
HL Shancken's picture

Did anyone ever notice that Ben Bernanke sounds just like Woody Allen?

Thu, 07/14/2011 - 10:48 | 1455980 caerus
caerus's picture

not prepared to take action at this point...ES hasn't tanked yet

Thu, 07/14/2011 - 10:52 | 1455995 Caviar Emptor
Caviar Emptor's picture

You didn't say pretty please

Thu, 07/14/2011 - 10:52 | 1455996 entendance
Thu, 07/14/2011 - 10:54 | 1456004 baby_BLYTHE
baby_BLYTHE's picture

Silver taking off again

So much for those that said the end of QE2 would be bearish for the PM complex, including my clueless Keynesian economics professor last semester

Thu, 07/14/2011 - 11:07 | 1456069 JustPrintMoreDuh
JustPrintMoreDuh's picture

Cue Ag margin hikes in 3 ... 2 ... 

Thu, 07/14/2011 - 11:41 | 1456236 baby_BLYTHE
baby_BLYTHE's picture

won't matter this time. It will just reveale how desperate they are to hide the fact the COMEX is a ponzi

Thu, 07/14/2011 - 11:56 | 1456306 I Am The Unknow...
I Am The Unknown Comic's picture

@justprintmoreduh:   Shhhh!!! You have to wait until Friday afternoon to say that because The Bernankster's buddies need time to frontrun it. 

Damn it man, get with the program!

Thu, 07/14/2011 - 10:54 | 1456005 Paralympic Equity
Paralympic Equity's picture

No soup for you, bitchez ?

Thu, 07/14/2011 - 10:56 | 1456013 RobotTrader
RobotTrader's picture

Gold, Euro, ES all getting dumped at the same time.

Same crap over and over.

Risk On, then Risk Off

10-yr. unfazed, yield is still an absurd 2.92%


Thu, 07/14/2011 - 11:06 | 1456060 SheepDog-One
SheepDog-One's picture

Refer to last nites poleaxeing of Robo by Tyler himself....funny stuff.

Did you fade yourself again Momo?

Thu, 07/14/2011 - 12:31 | 1456453 Bob
Bob's picture

Which thread, dawg?

Thu, 07/14/2011 - 10:57 | 1456018 Bay of Pigs
Bay of Pigs's picture

Akaka's a nice looking corpse. 

Go long Hawaii while he's still breathing. Earmark Central.

Thu, 07/14/2011 - 10:57 | 1456021 mayhem_korner
mayhem_korner's picture

Looks like he just tanked the commodities from what was going to be a nice chubby of a green day...

Someone at JPM must have told him to pull back on the reigns until they extort more physical silver.

Thu, 07/14/2011 - 10:58 | 1456026 cat2
cat2's picture

That's why PMs are selling!

Thu, 07/14/2011 - 11:03 | 1456047 MsCreant
MsCreant's picture

Keep talking Ben, I want more.

Thu, 07/14/2011 - 11:03 | 1456045 treemagnet
treemagnet's picture

ICEBERG!...Dead ahead!

Response: Icebergs are transitory.  All leaks can be fixed within 15 minutes anyway - we just need more fuel to go faster - call Turbo, get me more fuel!, more speed!, more glory! 

Thu, 07/14/2011 - 11:19 | 1456127 AltKey
AltKey's picture

The Bernank: Your lives are transitory and all your base are belong to me.

Thu, 07/14/2011 - 11:05 | 1456049 RobotTrader
RobotTrader's picture

Today is proof that the commodity markets (especially PM's) are so skittish, traders run for the hills on the slightest bit of "jawboning" from the Fed.

Imagine what another series of margin hikes will do...


Thu, 07/14/2011 - 11:17 | 1456113 InconvenientCou...
InconvenientCounterParty's picture

"Imagine what another series of margin hikes will do..."

make me a shit load of money on the dip, that's what. The margin hike is a clear signal in a world that isn't. A hike per day for a week would be a challenge, but there is a recent series to use as a template.

Thu, 07/14/2011 - 12:57 | 1456557 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

Get ready to stack and go long the if there's another hit and run on the PMs...

silver sub $32 and Gold sub $1500 will be a gift come august

(not saying its going to happen, but get ready if it does; not sure about US customers, but for us europeans - that could be why the frank dodd thing was introduced)

Thu, 07/14/2011 - 11:19 | 1456123 lieutenantjohnchard
lieutenantjohnchard's picture

the 1099 processor learns what most of have known for years. his history goes back 90 days as if jawboning is some sort of new process.

i guess in short order he'll tell us that silver is volatile.

robottrader: the sound of a shrieking woman.

Thu, 07/14/2011 - 11:29 | 1456169 Bay of Pigs
Bay of Pigs's picture

"traders run for the hills"?

Let me get this straight. Gold set an all time closing high today and you post this nonsense? What's wrong with you Robot? Can't you read a chart?

London AM fix $1592.50 PM fix $1590.50

Thu, 07/14/2011 - 11:31 | 1456177 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Imagine what another month of liquidating of silver bullion will do.  Why would I care about a margin hike when I want delivery of the underlying asset?  I would go somewhere else.  The margin hikes are going to put those exchanges out of business.

Thu, 07/14/2011 - 13:45 | 1456781 mt paul
mt paul's picture

july 15th ban 

OTC contracts 

that don't close with in 28 days...


what is this about ....

Thu, 07/14/2011 - 11:04 | 1456052 urbanelf
urbanelf's picture

while(true) qe++;

Thu, 07/14/2011 - 11:06 | 1456063 chinaguy
chinaguy's picture

and....the markets drop...

Thu, 07/14/2011 - 11:09 | 1456065 dwdollar
dwdollar's picture

What Bernanke fails to realize is that "chaos" is acceptable to a lot of people currently stuck on the bottom.  It would break up the current economic paradigm allowing some "very important people" to fall right on their a$$es.  Is Bernanke concerned he would be a street beggar in this new world?

Thu, 07/14/2011 - 11:33 | 1456188 NotApplicable
NotApplicable's picture

I'd say he realizes that chaos is acceptable to a lot of people at the top, who will own everything for next to nothing, which is why he is never prepared to act, one, because he doesn't really do anything, and two, he's yet to be told what to act like he will do.

I was just happy he used the word chaos, instead of slandering anarchy like so many are wont to do.

Thu, 07/14/2011 - 12:09 | 1456355 dwdollar
dwdollar's picture

True economic chaos has no predictable outcome.  The people on top do not want that.  The only reason they are able to take advantage of bankrupt countries is because order still exists in 80% of the world.  However, the collapse of the USD would undoubtedly be a global phenomenon.

Thu, 07/14/2011 - 11:09 | 1456073 sbenard
sbenard's picture

Interesting market reaction. Is that what caused today's Pollyanna Party to suddenly (but temporarily) end?

Thu, 07/14/2011 - 11:13 | 1456093 Natasha
Natasha's picture

Ben Bernanke speaks


Thu, 07/14/2011 - 11:13 | 1456095 Double down
Double down's picture

How long will this farce go on?  I do not even care about market directions but when will stop being relative to what this dude says?  Was not the CB stepping away from market manipulation with the end of QE2?


Thu, 07/14/2011 - 11:20 | 1456133 InconvenientCou...
InconvenientCounterParty's picture

Don't get pulled into this binary sentiment shit. Watch the big gears, not the little ones.

Thu, 07/14/2011 - 11:15 | 1456100 Robslob
Robslob's picture

Robslobs Hitchhiker's Guide to the Destruction of the Dollar

"Congress, The Fed, Corporations, Banks and You!"

Economy is great during QE sessions > Fed says no more easing needed > Easing stops > Economy stalls > Easing needed again > Economy looks good again > repeat.

Corporations will continue to lay off forcing the Fed's mandate of "lower unemployment" which forces the Fed to ease more which causes even more unemployment therefore forcing the Fed to ease more.

The U.S. ponzi will go as follows...print, print, print , print....default (Gold standard).

Congress will do the right thing...when they are finally done doing ALL the wrong things.

Thu, 07/14/2011 - 11:20 | 1456134 cahadjis
cahadjis's picture

+42 :-)

Thu, 07/14/2011 - 11:30 | 1456174 MsCreant
MsCreant's picture

This explains a lot. The answer is not enough if we are not asking the correct question.

Thu, 07/14/2011 - 11:16 | 1456110 HowardBeale
HowardBeale's picture

I wonder if Bernanke understands that the higher the market goes, the more people get angry, as it is perceived as what it is: Wall Street Winning!

Catch 22. Pump, pump, pump may bring pump, fire, pump, fire, pump, fire, reload. Unintended consequences are a bitch...

Thu, 07/14/2011 - 11:26 | 1456155 InconvenientCou...
InconvenientCounterParty's picture

Com'on man... really? Why apply your biases to the art of self-enrichment? That's a recipie to get yourself wiped out. Anger is a very blunt tool.


Thu, 07/14/2011 - 11:17 | 1456118 Tense INDIAN
Thu, 07/14/2011 - 11:24 | 1456141 km4
km4's picture

> Will someone just give the president a three-page termsheet already

Hillarious and the title should be Extend and Pretend with new False Hope and Change

Thu, 07/14/2011 - 11:41 | 1456143 I Am The Unknow...
I Am The Unknown Comic's picture

Aaaaand on topic, here's a good clip starring Bruce Willis as "The American People" The Bernankster as "The Gimp" and can you spot Jamie and Lloyd in this clip?

I thought it would bring comic relief to the testimony...

"...mmmm, mmmh, mmmh, my bernankster"

Thu, 07/14/2011 - 11:25 | 1456151 caerus
caerus's picture

Might be good for the PMs to pull back a little, find some support, establish base for next leg up.  I'd be worried if they didnt (see ESI April 2011)

Thu, 07/14/2011 - 11:27 | 1456157 buzzsaw99
buzzsaw99's picture

Bernanke: I am not going to qe at this point. when i get the call from j. dimon then i will qe.

Thu, 07/14/2011 - 11:29 | 1456168 downrodeo
downrodeo's picture



Chaos is a friend of mine. -Bob Dylan


Bring it! We need focus.

Thu, 07/14/2011 - 11:33 | 1456186 MFL8240
MFL8240's picture

What country or countries are solvent and can absorb the amount of debt the US is issuing?  Answer: NONE  So, is there any question about QE3?

Thu, 07/14/2011 - 11:34 | 1456197 Isotope
Isotope's picture

Good to keep in mind a comment I heard decades ago by John Mitchell while he was Attorney General under Nixon, "Watch what we do, not what we say," or something to that effect. Misdirection is a frequently used tactic, but it is absolutely routine in government.

You can't really say that they lie a lot. It's more accurate to say that they don't know how to tell the truth. If someone in government says that the sun rises in the East, my reaction is to wait till the next morning to check it out.

Thu, 07/14/2011 - 11:40 | 1456235 km4
km4's picture

“The Speaker has told the White House he sees no need to go to Camp David this weekend.”

I guess the jello is still not firm ;)

Thu, 07/14/2011 - 11:44 | 1456244 stirners_ghost
stirners_ghost's picture


Am I supposed to be afraid?

I need to be saved from order, at this point. All these systems, underwritten by institutionalized violence, have run their predictable course of oppression and destruction. Their elaborate interlocking fragility proceeds inevitably from the first instinct of officious bastards (hence, government officials) -- impose order. Every problem demanding a solution, a patch. A patch on top of a patch on top of a patch, until the complexity becomes unmanagable.

So sorry, assholes: entropy always wins.

I don't want your order. Good riddance.


Thu, 07/14/2011 - 12:12 | 1456371 downrodeo
downrodeo's picture



So sorry, assholes: entropy always wins.

I don't want your order. Good riddance.


You said it all right there my friend. I couldn't agree more.


Thu, 07/14/2011 - 12:03 | 1456333 Sambo
Sambo's picture

He will let S&P sink to 1100 before announcing QE3 after Jackson hole in late August. Till then it is all the way down for the stocks till Aug 2nd when there is brief rally and then another dip from the 'bad news' from europe.

Expect S&P to hit 1500 by November.

Thu, 07/14/2011 - 12:36 | 1456473 I Am The Unknow...
I Am The Unknown Comic's picture

They LOVE IT when a plan comes together! 

Thu, 07/14/2011 - 12:13 | 1456379 jointhewave
jointhewave's picture

Watch the YouTube Video 'Global Debt Crisis & WW3!'


In my opinion, we are months away from a false flag terror event...

Thu, 07/14/2011 - 13:00 | 1456402 Threeggg
Threeggg's picture

OMFG the "Bernank" has to be the dumbest asswipe in the whole world.

Talk about creating uncertainty. (his gift for words fucked him today)

and I have to say that Robo Trader has to be the biggest idiot on the planet for thinking investors move the markets !

hey azzhole....printed paper, 22 year old algo programmers and mouse clicks move the markets now.


Thu, 07/14/2011 - 12:37 | 1456484 johny2
johny2's picture

The market is a big, rigged casino, and it is made to make its owners rich at the expense of the gamblers they pull in. Some lucky souls manage to hit the jackpot, some manage to leave with theri money, and most get fleeced. In my opinion it is best to stay out of the casino, buy silver and hope that you will not need it.

Thu, 07/14/2011 - 13:45 | 1456777 quasimodo
quasimodo's picture

Been farming all my life, never seen a male cow.

But then that makes as much sense as the tripe that benny utters from his trap

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