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Why Bernanke Didn't Announce QE 3.
Many
commentators are baffled that Ben Bernanke decided NOT to announce QE 3 a month
ago.
The reason
for this is obvious: the Fed only got about three months’ worth of positive
economic movement from QE 2 and it blew gas and commodities through the roof
doing it.
Remember, QE
2 was only just announced in November
2010. And anyone watching the US economic data knows that we took a sharp turn
for the worse in Feb 2011.
So all told,
we spent some $600 billion and only got about three months’ worth of improved
economic data (not to mention that this “improved” data was massaged heavily).
So it’s
pretty obvious why the Fed hasn’t announced QE 3 yet… it needs things to get
terrible in the financial markets again so everyone will be clamoring for it to
intervene.
Remember
last year? QE ended in March. Then we get the worst May performance in over 40
years with stocks dropping like a brick… which then allowed the Fed to
announced QE lite and QE 2.
Just like
today.
The Fed is
going to let QE 2 end in June. We will very likely see some kind of collapse in
stocks start even before then. My personal expectation is the S&P 500 will
drop to 1,100 or so at which time it will announced QE 3 with a “SEE? We NEED
Qe in order to keep things afloat.”
And that’s
when the US Dollar will REALLY collapse and inflation hedges will explode
across the board.
So in the
near-term deflation is now the biggest risk. It may only be for a month or so,
but it’s coming (commodities’ and the US Dollar’s performance over the last two
weeks were the warm-up). After that Ben Bernanke can announced QE 3 and no one
will complain… that is until the US Dollar implodes.
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Maybe Helicobacter Ben is thinking of giving the cash out to someone else this time?
He knows he wants to print, he's gotta print, he can't help himself. It is all he knows.
Perhaps if he gives it out to the workers, they might circulate the money a bit more rapidly in the economy.
Barry O would ride in to a second term on a wave of happiness, whatever, whatever.
What a shambolic mess, what poor caliber people at the 'top'.
ZH is deleting my comments now!
I simply pointed out the this guy, Graham Summers, bought oil at 110 and stopped out of euro also at the top. I mean how much more wrong can you be than this guy?!
Watching that movie 'the Road'
sort of thing the guns n'ammo boys around here would like
banks have no market for new debt with consumers and the guvmint maxed out.....so how do they make money? trading....the fed can help by increasing volitlity....dear banks, you are fat and lazy, ever heard the term workout?
deflate already
i'm waiting to buy ..
bubble bytches...
Just stick a pin in that balloon already...I agree. Endless torture until then.
Noise about QE3 is a red herring and if Bernanke is hoping for another round of deflation, well whats that saying about hope in one hand ...
Its the deficit - there are no buyers for debt at these levels - period. Debt monetization is the only answer, anyone who believes more intervention is not forthcoming should probably explain how washington intends to cut 1 + trillion in spending. More likely we'll drift sideways until administration pushes button timed to election cycle one last time. At that point US goes all-in, one final keynesian orgy - Obama gets final term and leaves austerity to sucker dumb enough to step into oval office.
Off topic, but ....thought you might be interested.
YouTube's Harisebon7777777 should be commended for his work on measuring the radiation levels in Tokyo. The device he uses costs about $1000, which I am sure he has paid out of his own pocket to provide us with the truth of what is really going on in Japan.
It is eerie to watch his videos. Typically, his hand is shown holding a geiger counter in some public place with people walking all around him as if there was nothing of importance going on; while all along, the geiger counter in his hand reveals what is really happening. Harisebon is documenting the slow irradiation of the Japanese archipelago. A visual unfolding of a tragedy.
While watching these videos. it is hard not to wonder how many of the folks one sees walking down the street will come down with cancer in 10, 20 or 30 years.
Go to Harisebon's YouTube channel and give him a shout-out. He deserves it.
http://fukushimadisaster.blogspot.com/2011/05/radiation-harajiku-omotesa...
Hello
I don't mind the plug for the newsletter, as I have in exchange received some spot-on observations.
Free-market capitalism, eh? Not the kind of bullshit practiced on Wall Street and American Board Rooms mind you.
Besides being right about QE3 he does it succinctly and saves the plug for last.
Fair enough for me.
If you don't like it, ignore it.
Sounds like we have an EHarmony match! And he's right about QE3? WOW! Really? No One, I mean NO ONE thought QE3 would be announced, except you.
LMAO....
In fact, I will pay you to STFU on this blog for a month. What's the price?
So sick of you guys peddling your newsletter I could jump right out the window.
It is good to see that i have been at least three months ahead of the consensus.
I was the only one posting for a while that this two hundred trillion functional dollar short was a real deflation monster and that all this bullshit in commodities would cease as soon as bernanke said boo.
And there wont be a qe3 for a good long time, if ever.
Laughable News.
Secrets for $450 (OZ) Gold..
try a 1/10th..x3 =$450
Gold is a deal..don't get me wrong.I remember $450 pricing..
Not to many people we're planning then. ;-)
This is anything but research..
just leading tired horses to the trough!
They can only hold off on QE while the government can eat pension funds.
There is NOBODY to buy the auctions. WTF is gonna happen to the dollar if auctions start failing?
Do you folks not notice that people in the EU are actually discriminating between various euros depending upon which country printed them? Why would a massively deflating Greek economy suffering under crushing interest rates sucking all the creditmoney out of their system expect to have a currency worth anything?
In every case when auctions fail and interest rates spike, the forex is not kind at all.
Trav there are too many mercantilists in unstable riot prone countries who have to buy treasuries and conduct their energy purchases in dollars for now.
Dont worry about treasuries for the next few months.
all this kind of goes without saying, doesn't it? thanks, captain obvious
Bit of a Catch 22. The ' real'market wont sell because that means it will go up (QE launched). But they dont want to really buy because it's a bullshit market without QE. It's a total clusterfuck really...just like now. I imagine the PD's might be instructed to crash it as an excuse to launch QE eg GS sells 1trillion shares to an offshore SPV owned by GS. Market crashes. QE announced SPV's investments soar and they sell to GS at original price. Mission accomplished...and we are off to the races. You have to say under that scenario that the intention is to totally destroy the USD. The elite have already got their islands, superyachts, submarines(!), private armies (special forces), gold etc etc all lined up. The USD going to hell wont affect them in the least ....jus' sayin'
FED should give a Million bucks to every FILING TAXPAYER.
If you're married you each get a million. That would do more good for the Economy than supporting these Retard Bankers and Investment Bankers who couldn't 'honestly' ever figure out how to make dime-one if they didn't FIX it in advance.
***** I do apologize to people suffering from retardation for throwing you under the bus by putting you in the same group as 'BANKER'. I know the humiliation has to be burning deeply at this moment.
I see your free report and raise you a free mormon bible!
OMFG
You may as well start talking about Hairy Spotter and Dildo Saggins...
I'll see your mormon and raise one Gideon.
When will Tyler admit to himself that the Federal Reserve System is a privately owned Rothschild bank, charging interest from the debt slaves,continuously and intentionally causing boom and bust, inflation and deflation ?
Methinks the content of this site more than implies the admonition of such.
But, thats just us.
Or how about no QEIII at all. Instead, the MENA situation continues to turn to shit and suddenly we are involved in a major war. No need then for QEIII as the Bernank will then have the presses in high gear. The money machine will be on.
he's still in denial
Tyler is really an agent provocateur to flush out and identify the malcontents.
Prepare for re-neducation
Bullshit. Tyler could care less about anyone on this blog.
Soylent Green, dude.
There will be a QE3. Will it be stealth or do they need to jam it down everyones throat using national security.
Open Wide...
Actually it's bend over so you will shit bonuses for a week afterword..
I'm shitting a bonus right now...
Somehow you seem relieved.
Coulda' used some of those 600B sheckles myself.
Free Report Bitchez.
Everyone except my dog believes we're staring into an inflation abyss. Today he told me he's all in for mega inflation. The commods got the wind knocked out of em, the China wheat crop failure is over, the unprecedented freeze in northern Mexico is over, Fico scores now average around 145 on a good day so housing is comatose, etc. etc. Aint gonna be no steenkin inflation. Save this because next spring you'll be getting 30 year mortgages for 1-2%. Bernocchio should stop his QE game and instead provide the financial cushion (if necessary) after everyone in the country has had their FICO set to 750. If they kept it clean for 5 years they're good. If not they're losers...back to FICO 180 and debit cards. A lot of people would love a chance of getting their sacred score back and the economy would take care of itself. What credit score did the banks have in 2008?
onarga74,
Remove 50% of words.
Clarify topic sentence.
State clear conclusion.
C+
Harvey, you see inflation?
"Ruff..kill them!!"
But seriously, I have not seen reliable National Fico numbers in a while, but sense much deflation in them.
Baffled.
17 pages of 100% FREE SPECIAL REPORT.
Please.
Declaring QE3 when silver was flirting with 50 and gold 1600 would blow US$ full of holes. They have to rig the price down for a while before doing anything.
Exactly. Look at gold and silver in the summer of 2008. They took it WAY down just before the bail outs.
The Bernank wants Congress to grovel at his elitist feet begging him for QE3 before he gives it to them. He will give it to them anyway weather they like it or not because his elitists friends will go bankrupt if he doesn't.