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An Open Letter to the QE Crowd: GIVE UP!
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So… all of you were clamoring that QE 3 was coming. It was guaranteed.
Well guess what. It didn’t. You were wrong. 100% wrong. All we got was the same tired “the Fed stands ready to act” tagline from Bernanke.
This was the obvious conclusion anyone who actually bothered doing research would come to. Bernanke stated as far back as May 2011 that the consequences of QE outweighed the benefits. He also stated a month ago that for the Fed to buy too many Treasuries or Agencies would “hurt” the financial system.
But no, everyone and their mother was positive QE was coming today. Nevermind what Bernanke actually says. Nevermind that food and gas prices are near records. Nevermind that the political consequences of QE now would assuredly cost Obama the election and result in Mitt Romney taking the Fed to task once he was in office… QE was definitely coming today.
You were wrong. You’ve been wrong for over a year. The fact the market has ramped after the Fed disappoints only shows how desperate the QE crowd is (“surely this leaves the door open for QE down the road”. We’ve been through this same tired scheme over 10 times now.
It’s 100% totally and completely pathetic. And the fact so many people buy into it is proof positive that sadly many investment professionals don’t have a clue how to perform critical analysis or even accurately engage with reality.
So Bernanke disappointed. Next up is the ECB. What happens if it disappoints? What happens if the whole “Central Banks can save the day” philosophy turns out to be total nonsense?
Just a thought. One that might be worth considering given that the claims of more QE have proven to be bogus for over a year now.
Graham Summers
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This article is over-the-top abusive. It reads like some comment on a late-night-blog. I never thought Bernanke would do QE3, and I still feel abused and insulted reading it.
Zero hedge really needs to stop giving this guy a forum. Unless he takes meds or spends some time in therapy.
Graham, this old adage is relevant here "you can predict what is going to happen or when it's going to happen, but not both". Many of us believe that additional easing is inevitable, but only to prevent a deflationary spiral or to keep basic government functions going. Until we start deflating heavily and people start begging for easing The Bernanke is going to lay low. But that day is coming. Any alternative destroys the financial system, and in the end that's all he and his boys live for.
I agree with you Yogaman. The bottom line is that the USG is completely dependent on low low interest rates just to survive. That is the single most important constraint to massive money printing. I would challenge anyone who thinks that hyperinflation is envitable lever up to their maximum potential and buy the biggest piece of RE their credit rating can afford. Put your money where your mouth is!
You first!
No more posts from you!
Graham's letter is not addressed to the average ZH reader, but to the algos and bots.
Exactly. Like I said above, remember, this is the bunch of jerk offs who have to ammend every post they write in sarcasm with "/sarc" just so they don't confuse each other.
Fuck you. We don't all have to do that.
but...one way or another the USG WILL BE FUNDED!!!
whether by QE or some other transfer of dough the appetite of the governement will be sated.
So while many think QE is about helping the economy the other function is funding the government.
The US Government, Wall Street, and the banks, will NEVER be "sated." Just the opposite.
Just sayin.'
After reading these statements from Mr. Summers, I have to ask, why does Zerohedge continue to allow him to post articles? He adds zero value to Zero Hedge and has yet to be proven right on anything of his that I have read.
Let the muppet read everything offered and decide for themselves.
Graham, you keep saying that "all of you were clamoring that QE 3 was coming."
Everyone did not say it was coming now. False statement of facts to make yourself look prescient. You're the one who is 100% totally and completely pathetic.
Grow some skin Oh Thin-Skinned One. He wasn't directing this at YOU, but at the algos and compliant-with-Wall Street mainstream financial press whores.
It's hilarious how the same ol' posters here so quickly jump on the bandwagon to disparage a good ZH contributor. Fucking sheeple. Foll'ers addicted to green arrows from their presumed comrades. Trying so hard not to be snowflakes they have become mere flakes.
Oh, I forgot to mention: Not /sarc (for all of you who are unable to detect sarcasm, or a lack thereof, as the case may be.) LMAO
Oh I thought you meant questioning ethics
Umm, Mr Summers
That would not be all of us.
Graham: You are flat out WRONG! QE III, IV, V, VI and the rest are a fucking certainty.
You don't get money. You don't get Ponzi schemes.
Money is DEBT.
Money is a Madoff/Bayou Ponzi scheme.
56 cents of every dollar spent is "borrowed". The lender of last resort will NOT let the system implode, there will be no redemptions, and implode it will if more debt isn't added tomorrow after today's debt is created.
What did you not understand about the recurring word in Graham's post, "today"?
And seriously, did you REALLY think that Graham -- a frequent visitor to this site, who has stated often that QE is a certainty IN THE FUTURE -- doesn't "get Ponzi schemes", that "Money is DEBT"? Are you really that fucking stupid of just addicted to green arrows from all the other boneheads who need to be told any time a post is written in sarcasm?
BTW, not /sarc. LMFAO
U look like Grahm.
Oh he's standing up for graham summers therefore he must be graham summers.
Love it, everybody agrees with you btw. Not.
LMFAO
Good call Graham.
I think zh was saying that the s&p would have to hit 1100 before qe would be triggered - which I suspect grahm might agree with approximately.
I give grahm credit for pointing out that the final word was no qe at this time. Basically Ben has levitated the markets on words only.
Fucking Que? This pussy pointing fingers is rich. "you were wrong" "100% wrong"? REALLY? This nigger (no offense to the brothers, just like the N word) is nothing butt wrong COCK SUCKING STUPID MOTHERFUCKER, you promised our currency collapse over a year ago even put a fucking date on it. I hope you get shot in the neck. Cheers
He's actually a cracker. Graham cracker.
Just thought I'd take a moment to stoop to your level of utter fucking stupidity just to see what it feels like.
Graham's only mistake was in assuming that a bunch of brokedick do-nothings who have to be explicity reminded if a post is written in sarcasm with "/sarc" would understand that his post was directed at financial press whores and algos and not at ZH readers. Speaking of ZH readers, or at least frequent commentors, it seems many are getting increasingly thin-skinned, stupid, and quick to lash out in recent months.
The blog is devolving. like just about everything else. To be expected I suppose. And don't worry, Ikea Boyz, Armeggedon will come eventually, and everyone will be just as miserable as you are. Then Ye Shall Find Inner Peace. LMAO
LMAO
Capitalism's beauty is that investors are punished for misallocation of capital.
Bernanke eliminated causation and thus destroyed American capitalism.
every investors "misallocation of capital" is anothers pay day
i'm still learning to be on the right side of that of that equation
So you wanna be a banksta?
Graham, humans; thus the market, are NOT logical beings. We respond to "Hope and Change". One day you will be right; however, your record will be worst than a stopped clock.
The market is not human driven anymore. It isn't driven by fundamentals anymore. It is untradable if applying technical rules. This market is driven by computers and you're their staple diet.
What's worst (sic) is that the only thing that you got right is; the market (sic) are not logical beings.
Even that was torn and mangled.
THe only people saying it would come today were the normal talking heads that most ZHers dismiss. I used to give this guy some credit, but after this childish rant, I do not any longer.
"THe only people saying it would come today were the normal talking heads that most ZHers dismiss."
Those are exactly the people Graham was directing his post at dumbass.
(Note to self: If you ever post something here written in sarcasm, amend it with "/sarc" so the idiots can detect it. Also, if you post something directed at algos and financial press whores, do not say "you", say "the algos and financial press whores", otherwise the thin-skinned idiots who can't detect sarcasm will get riled up and even those who kind of understood may just jump on the bandwagon in their patheticly sheeplistic quest for green arrows.)
LMAO
And one other thing. Wasn't there even a post right here on ZH about how you could make something like $500,000 by betting it wouldn't come today as Bernanke would "disappoint" once again? Get the fuck out of here with that nonsense.
Yeah, there was such a post "about" that. It was a post about how FUCKING STUPID IT WAS FOR CREDIT SUISSE TO SAY THAT SHIT.
Dumbass. Get the fuck out of here with that nonsense.
Tyler, the Ikea Boyz are turning on you. I guess it was inevitable. Maybe they're just following the script and taking all the Fight Club stuff way too literally. What do you expect of a bunch of idjuts who have to be told when a post is written is /sarc?
And you know what THAT means: They're about to eat a bullet. Awwww...
(note to self: Advertise high-priced gauze on the ZH website)
I think this is the best article Graham Summers has ever written. I've been bored to death with QE3 speculation since it was first mentioned.
Now when is QE5 coming?