This page has been archived and commenting is disabled.
Fed Buys $20 Billion In QE3 Mortgages; Jobs Created: Zero
Yesterday, the Fed reported the first $20.1 billion in net, non-rolling purchases of MBS eligible under QE3 (consisting of FHLMC, FNMA, GNMA and GNMA2, most likely the bulk of them coming out of a certain office in Newport Beach which has decided to start locking in its monster profits for the year after getting QEternity spot on). End result: jobs created or saved zero. But at least we got the first recessionary PMI print, and an employment component that was the lowest since March 2010. When in doubt who can destroy the economy the best, just leave it to Benver.
»
- 10019 reads
- Printer-friendly version
- Send to friend
- advertisements -
"Rates may go lower, I'm going to wait to refi."
Translation: "Fuck you Bernanke!"
Bill Gross is not going to be buying AAPL with his QE3 money.
Wondering why Finviz dropped ZeroHedge.
http://finviz.com/news.ashx?v=2
Bad news for goldbugs: 50% of the world’s gold is used as jewellery, and after a brief investigation into the industry I'm afraid to report that jewellery demand is absolutely collapsing. If the jewellery market can’t hold up, then we may be in for a monumental collapse in the gold price.
Source 1: World Gold Council reports falling jewellery demand http://jewelleryoutlook.com/index.php?option=com_content&view=article&id=1048
Source 2: Platinum jewellery demand is also falling, indicating a general trend http://www.retail-jeweller.com/products/platinum/demand-for-platinum-jewellery-falling/3100080.article
Riiiiggggghhhhht. because the purchasing power of all fiats is holding up so much better. Come on MDB, you can do better.
Good thing I'm all in on silver then
The outlook for silver is even bleaker, I'm afraid. Firstly, graphene is set to replace many of the industrial uses for silver, causing an avalanche of new supply on the market. In addition, miners are increasingly incentivised to increase output, as silver trades at a 15 dollar premium to fair value.
Source: Graphene replicates many of the industrial uses for silver, which is great news for consumers, but bad news for silverbugs http://silverting.wordpress.com/2012/01/01/graphene-may-replace-silver-in-technology/
How's that worked out over the last 20 years again? LMFAO!!! Still have the same number of ounces and guess what? They still have great purchasing power. Come on MDB, give us some real satire to laugh at.
Graphene is interesting, but I think more than likely it would affect the Copper space more than Silver.
The possible antimicrobial properties also could be worth investigation in the future.
The technology is still in its infancy and a long way from displacing Silver in this area. Certainly not in the next 5-7 years where I plan on booking the profits from my PM's and diversifying into other productive assets.
Please tell us what the "fair value" of silver is, wise one.
It's a good thing he hasn't learned about abiotic silver yet...
You're quoting a blog, possibly a spam blog, that has a total of two (2) posts. Seems legit.
MDB is correct. We have been working with graphene as of late, and far superior and cheaper than silver. Especially when it comes to energy storage and production.
Its nice some tool tard gave it a negative... another ignorant, non educated sheep...
You should probably look up how much it costs to make Graphene and also note that there aren't any major applications for silver that it can replace as well as silver. You'd be better going to copper or steel than Graphene. Graphene that is not manufactured in the proper way and in the proper thickness is useless. And the price for that is in the 100's of dollars per square inch.
Graphene is getting cheaper by the day. Yes, there are some very major applications for graphene, and no in many of the applications that are used in energy harvesting, silver, copper, steel et al, are NOT options.
Then silver can be the poor mans gold ;)
Plenty of Gold and silver to back up paper money.
Graphene is made in a kiln powered by electricity either hydro, oil, coal, nuclear, wind or whatever, its cost is tied to the cost of electricity, silver is more conductive too.
Americans aint gonna be buying or using any energy intensive related industries, we simply cannot compete with China with our current environmental laws, besides we have Mexican silver miners, MILLIONS OF THEM.
How is the market for debt-based extortion and war?
Surging?
QE will prop up PM's...so don't wory..Creating 40 billion a month out of thin air will send gold through thee roof...
But doesn't gold have more uses than just jewelery. I'm thinking...oh I know one...as a hedge against inflation.
Gold is only good for burying and making into giant cubes to fondle. Just ask uncle Warren.
What about a gold idol of Becky Quick? Buffett will fondle that all day long.
Gold is a shitty hedge against inflation. You don't know that??? Gold is a hedge against deflation, declining real interest rates, and political instability. You want to buy gold when interest rates are high but declining. If you want to hedge against inflation, the best plays are probably real estate and LEAP calls. Unfortunately, this is very speculative.
A significant drop in PM pricing ? We should be so lucky. I don't know about the rest of you but I've saved plenty of dry powder for just such a gift.
You are so fucking stupid its not even funny....
I'm afraid it is you that is the stupid one among the two. Just so you know, there is a world of comedy beyond Adam Sandler.
MDB.....
You are one fucking idiotstick.
That's funny, Soros/Buffet (love 'em or hate 'em) see it differently. Central banks are buying-up Gold like crazy. TPTB are delaying the masses from buying PM's as long as they can so they can buy on the cheap. Monoply currency or "Real Money?" GEE, let me see......
Dear Mr. Million Dollar Bonus,
When ever I have the pleasure and luck of coming across your posts the hair on my neck stands up and it tingles with excitement. When the sweet poetry of intelligence that flows out of your key board and into my simple brain it makes every molecule in my body explode into …. into a … well better not say here on Zero Hedge.
It is an honor and privilege to have access to your writings and opinions. Please keep up the good work and please ignore the down arrows – they just don’t understand.
Taint Boil
Ditto. MDB=Funny shit. People, try and get the joke.
It would be nice if you were correct on this call MDB because we didn't see a lot of buying opportunities in gold recently. But since your analysis is only focusing on one segment of the demand side leaving out major gold stackers like China and since you are also completly ignoring the latest supply issues, I'm afraid we won't see a "monumental collapse" like FB. :)
The "jewelry" industry is booming around here, especially the decorations for local lake bottoms. You should see where I keep having my accidents, Its absolutely fabulous.
Million Dollar Bogus
Yes! Yes! Let gold and silver crash and burn, PLEASE!!!!!!!!
its there under blogs. Bottom left of page.
And it's tracking exactly zero posts. So ...
In the meantime, reads on Zero Hedge have dropped by 1/3 to 1/2.
Maybe Finviz demanded some coin.
Perhaps because they think ZH is a hyperbolic, financial Chicken Little?
There is some good info on this blog, but you really need to dig through the cr@p to find it.
And now ZeroHedge is back up on the Finviz blog stream.
"Hyperbolic" must have been the magic word.
What I think is hilarious is that anyone believed QE would create jobs in the first place
Pimco's Gross: Want to Make Money? Front-run the Central Banks
If I could get a job, I could get a house, then I could have Shalom Ben pay for it.
I think they're doing it bass ackwards.
If you become a banker you can just steal what you need.
0.25% would be good.What good for the goose...
Damnit Ben just pay us to have mortgages,
Why stop at positive, I think we should go straight to negative mortgage rates.....
QE3 was not meant to help jobs or even raise the stock market, it's MBS purchasing is meant to remove bank's liability for fraud infested mortgages and disappear them (into the bowels of the Fed). IE, take the toxic mortgage related assets off the bank's hands... disgusting.
But how many "fees" and "bonuses" were created for bankers? Get the motherfucking guillotines out already.
http://www.nytimes.com/slideshow/2012/09/27/world/europe/20120927GREECE-3.html
uhhh, quick, liesman's take will be...
got it: jobs are a lagging indicator.
the goal is to lower UE. one way is for people to actually work. another is for people to become so disgusted, so they quit looking. another way, is for people to die from poverty. Ben has chosen the 2nd and 3rd option.
The goal is to extract every last dime from the middle class, a goal that's well on it's way to realization.
CFTC Orders JP Morgan Chase Bank, N.A. to Pay $600,000 Civil Monetary Penalty for Violating Cotton Futures Speculative Position Limits
In addition to imposing the $600,000 civil monetary penalty, the CFTC order requires JPMCB to cease and desist from further violations of Section 4a(b)(2) of the Commodity Exchange Act and CFTC regulation 150.2, as charged.
http://www.cftc.gov/PressRoom/PressReleases/pr6369-12
They should say exactly how much over the contract limits JPM was so people can judge how poorly JPM monitors their traders. Whale trade after whale trade. Clearly Jamie Dimon is poor manager and a complete fucktard. Why is he still employed?
Non-event. A 600k slap on the wrist when you booked profits > a few billion or more, is simply good business to the bankers.
And you can be assured that a clause admitting no wrongdoing is explicitly stated in the settlement language.
Move along.
P.S. Bart Chilton is a pussy.
A $600k fine is a rounding error to JPM.
pods
Bernanke belongs in jail. He is a blatant liar and con man!
No, he deserved to be tried and executed for treason. Time for some real consequences.
I've been saying this for a long time. I would not want to be Bernanke when the rest of the American people figure this out.
All well and good, but first, you will have to give the "rest" of the American time to deal with several other more pressing matters.
There's the saga of the replacement refs being replaced by the old refs in the NFL. There's the ongoing NHL labor dispute. There's the new fall teevee season. Let's see - there's also the MLB playoffs coming up next week. And etc, etc, etc.
So, basically, you might be waiting for a goodly time period.
Just wait. When the power starts going out on a more permenant basis and real goods and services can no longer be delivered, the sheep will notice.
Hedge accordingly.
Okay. So we're all going to hitch rides in somebody's SUV and take a little trip to Ben Bernanke's house and TCB, right?
Or, there will be the usual looting and destruction of property in our own neighborhoods, instead.
Fellow ZHers, there are your choices. Green arrow or red arrow away!
Many communities are doing the right things and having an adult conversation about reality. All you need to worry about is whether or not you are in one. Look around, it's an easy thing to spot.
Really? I missed it.
I would not want to be us when the rest of the American people figure this out.
Duck and cover.
Treasonous fucktard has a certain ring.
Would that office be Robotrader's corner office with the four computer terminals?
I kinda miss him...
"Bernanke gonna pay my mortgage!!!" -Wells Fargo Leech
LMAO!
The Federal Reserve is the Bloodbank for the Blood Sucking Vampire Squid. They provide they blood for said Squid to feed on that the the citizen is refusing to give right now. Said citizen has stayed locked in his house since the last epic bloodbath and doesnt come outside anymore as he is suitably aware that there is a good likelihood that his blood will be providing the next meal if he does venture outside
Love the vivid imagery; +100
The parasite has done so much damage to the dog that now even energy shots don't work.....but getting rid of the parasite and returning the power to issue money to the people could still save the dog.
You got to think like a bankster:
The pound is full of dogs.
And more are born each minute.
pods
BERNANKE: GIVE IT SOME TIME
BERNANKE: QE3 NEEDS TIME TO TRICKLE DOWN
BERNANKE: RECORD WIDE WHLSE-TO-RETAIL MTG RATES WILL COLLAPSE SOMEDAY
BERNANKE: I WEAR DEPENDS REGULARLY NOW BECAUSE MY SCPHINCTER IS ALWAYS PUCKERING
IMPENDING SELL OFF ......
Longs please be careful.
Due to recent central bank intervention and short covering spikes, these daily charts are extremely overextended and significant correction expected very soon:
SPX, DOW, NASDAQ, NZDUSD, GBPUSD, AUDUSD, COPPER, CRUDE, GOLD, SILVER. [USD strength will return]
http://www.zerohedge.com/news/2012-12-24/market-analysis
http://trader618.com
MBS “investors” do absolutely nothing for this country whatsoever. Hoarding MBS instead of investing in bonds and equities demonstrates a sick narcissism and complete disregard for building the economy. Real investors actually help people by investing in blue chip companies employing thousands of Americans, or buying US treasuries and enabling the government to do its job. What do MBS investors do to help the economy? Absolutely nothing. Unlike real investors MBS hoarders are purely in it for themselves, and serve no purpose to society whatsoever.
Hence they should be saved.
@howenlink
Chris Whalen said when QE-x was announced, the offices of a mortgage broker in his building erupted in celebration and began yelling, "QE3!"
Just so everyone knows, howenlink copied and pasted a recent post by MDB and changed "Gold" to "MBS". He's being parodic.
Aaaaaaaaaand they're off...it's 'Bearded Ben', 'Tiny Timmah', and 'The Sach' in the lead followed by 'Broken Dreams', 'Smoking Ruin', and 'Heckovajob' with 'Downward Spiral', 'Hope Anna Prayer', and 'The Middle Class' bringing up the rear.
Seriously, WHY would anyone expect jobs recovery (except Mark Zandi) from agency MBS purchases??????????????/
http://confoundedinterest.wordpress.com/2012/09/28/this-is-a-recovery-manufacturing-shrinks-to-lowest-level-since-oct-2009/
Nobody seriously expects a job recovery. I don't think Zandi believes his bullshit. He has a product to sell and he has to have a story to sell it. He just hopes people overlook the fact that he has been consistantly wrong.
I see what you're saying Dr. but at some point doesn't promoting something when you don't believe it yourself, (and have probably positioned your own assets accordingly) turn you into a lying sack of it?
The American people have the attention span of a fly. They aren't going to remember, and the press certainly never holds anybody accountable......I will hold up TOTUS as my example.
"The American people have the attention span of a fly."
----------------------------------------------------
Will change when the power goes off on a more permenant basis. Have faith that thing that cannot be sustained, won't be sustained.
I must remember to send Gross a nice Xmas card this year.....sweeeet call.
Buy Silver and Gold....
withdraw from the paradigm....
it is the only way to defeat them.....
DEATH TO ALL BANKERS AND THEIR BITCH OWNED POLITICIANS...
I have a question about the title of this piece.
Fed Buys #20 Billion
I don't know what FHLMC, FNMA, GNMA, GNMA2 stand for, but it's my assumption that the fed didn't buy $20 billion of MBS, they SOLD $20 billion worth of MBS (that they already owned) to the government, i.e, us. Am I wrong here? If I'm not, see how insidious calling 12 private banks the Federal Reserve is? It poisons the language that even the most informed use to talk about this issue.
They will be buying 20 billion a week if they are doing 80 billion a month. Don't fight it. Don't try to be contrary. Making money is easy. If you are trying, you are doing it wrong. The macro could only be improved by the existance of a real economy, but that is a minimal concern. And no, that was not a joke.
A number of new gold and diamond dog collars recently sold and the coke seems a heck of a lot better.
I think this could help sherrifs as they will have to serve eviction notices. Looks like policing could be the new finance job.
monetary policy operates with a long and variable lead time, or so a Professor taught me in the late triumphant 1960s
This "money" wil be recycled by the "banks" to buy US "bonds" in order to keep the Dead Thing walking.
It's the Circle Jerk from Hell, administered by Satan's spawn.
Banker Bonuses Save? Few billion?
Actually that chart (and the text of the post) is a little misleading. If you visit the NY Fed's site they have an 'archive' link under the chart. Looks like the Fed has been buying 5-8 billion of these things every week (I only went back a few months). Looks like they bumped the first 10 billion week of Sept 13-19th. Maybe that's the plan, $40 billion / 4 weeks per month = $10 billion per week.
Hell if they want to throw money at something, why don't they throw money at a Federal infrastructure repair project?
Ah, wait a minute. That would actually create jobs, increase the velocity of the money supply, and stoke inflation! Hummm? So the Fed really doesn't want to create jobs, yeah?
WTF do I know? I don't have a PhD in Eco-freaking-nomics.
Make QE like the Super Bowl. Roman numerals- QEV, QEX,QEL, QEC etc. An annual Winter gathering in mostly warm weather locales. Parties. Girls. Million dollar 30 second commercials.
It seems that the Fannie current coupon already priced it in. Very small reaction to today's MBS purchase by the Fed.
http://confoundedinterest.wordpress.com/2012/09/28/this-is-a-recovery-manufacturing-shrinks-to-lowest-level-since-oct-2009/
oh please, we all know how this will go. When they finally call and offical recession, the market will jump as it will assumed to be a rear view mirror reading...so by the time is it called...we should be well be on our way to an uptend.
Just as "ForEver Stamps" have done for the USPS, so will "ForEver Bonds" do for Bennie's printathon.
Can I point out the insanity of the fact that as a country we have delegated the responsibility to control interest rates and print money to a handful of academics with just about no real world experience. We trust these people to be smarter than the markets overall and have NO checks and balances on arguably the most important branch of government.
The Founding Fathers never would have allowed the Fed to operate without checks and balances. Seriously, WTF are we thinking?
"Academics"?
Where?
Branch of government, or privately owned cabal?
Seriously, WTF are we thinking?
"We?"
So what time was the money print? 10am? 9am?
Benny should write a new dissertation work "How I Screwed Up the World Economy". It might certainly be considered subject to Nobel prize awarding to join his fellow economist Paul Krugman.
The work when published would no doubt become bestseller No. 1 earning enough money to comfortably pay out the family house hypothec.
Wait Tyler!
QEternity has saved the jobs of countless illegal, Spanish speaking, immigrants from South of the border who have been the gardeners and construction workers for the Hamptons and Greenwich Conn. crowd.
You know!!!! All those jobs American citizens won't do!?!
They have also saved a million jobs at FoxConn because without massive QE their would be no possibility to finance that iphone with your credit card or student loan.
We need to thank Shalom for making Spanish the official language in the construction and landscaping industries.
MS-13 will be sending special representatives throughout the nation to open new francises to soak up all the gravy being created by the FRBNY.
All thanks to Bernanke!!!!
does buying all these MBS , mean that Bernanke is the only one who can foreclose on houses or can he get linda green to robosign for him ?
"Fed Buys $20 Billion In QE3 Mortgages; Jobs Created: Zero"
Jobs destroyed? Plenty. Probably about $20 billion divided by the median income = about 385,000 (less a few accounting jobs at Fannie Mae and Freddie Mac.)
Incidentally, adjusted for inflation, median income in the U.S. is now below levels in the (first) Great Depression.
http://washington.cbslocal.com/2012/09/18/report-median-income-worse-now...
We need to thank Shalom for making Spanish the official language in the construction and landscaping industries.
Are you kidding me? I purchased some coffee in the can the other day and the MAIN language was Spanish.
In other words, the illegal immigrants are numero-uno now in Merka. Fuhgedaboud those stupid taxpayers.
Fed just released transaction-level data for outright purchases through September 30, 2010.
http://www.newyorkfed.org/markets/omo_transaction_data.html
People are not paying their mortgages, but the Fed paid well OVER PAR for all of this crap. Where is the outrage?
bonuses created: 1800