Fed Buys $20 Billion In QE3 Mortgages; Jobs Created: Zero

Tyler Durden's picture

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.

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hedgeless_horseman's picture



"Rates may go lower, I'm going to wait to refi."

Translation:  "Fuck you Bernanke!"

slaughterer's picture

Bill Gross is not going to be buying AAPL with his QE3 money.  

MillionDollarBonus_'s picture

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

LawsofPhysics's picture

Riiiiggggghhhhht. because the purchasing power of all fiats is holding up so much better.  Come on MDB, you can do better.

Stackers's picture

Good thing I'm all in on silver then

MillionDollarBonus_'s picture

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/

LawsofPhysics's picture

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.

xtop23's picture

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.

Bastiat's picture

Please tell us what the "fair value" of silver is, wise one.

Thisson's picture

It's a good thing he hasn't learned about abiotic silver yet...

XitSam's picture

You're quoting a blog, possibly a spam blog, that has a total of two (2) posts. Seems legit.

Praetorian Guard's picture

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.

Praetorian Guard's picture

Its nice some tool tard gave it a negative... another ignorant, non educated sheep...

Quinvarius's picture

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.

Praetorian Guard's picture

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.

BattlegroundEurope2011's picture

Then silver can be the poor mans gold ;)


Plenty of Gold and silver to back up paper money.

SmittyinLA's picture

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.

Seize Mars's picture

How is the market for debt-based extortion and war?



Cole Younger's picture

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...

Village Smithy's picture

But doesn't gold have more uses than just jewelery. I'm thinking...oh I know one...as a hedge against inflation.

Temporalist's picture

Gold is only good for burying and making into giant cubes to fondle.  Just ask uncle Warren.

Tijuana Donkey Show's picture

What about a gold idol of Becky Quick? Buffett will fondle that all day long.


Thisson's picture

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.

xtop23's picture

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.

RiotActing's picture

You are so fucking stupid its not even funny....

TheCanadianAustrian's picture

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.

Bansters-in-my- feces's picture


You are one fucking idiotstick.

f16hoser's picture

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...... 

Taint Boil's picture




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


Tijuana Donkey Show's picture

Ditto. MDB=Funny shit. People, try and get the joke.

flyingpigg's picture

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.   :)


PiratePawpaw's picture

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.

Xanadu_doo's picture

Yes! Yes! Let gold and silver crash and burn, PLEASE!!!!!!!!

LBI Trader's picture

its there under blogs. Bottom left of page.

Precious's picture

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.

tescher's picture

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.

Precious's picture

And now ZeroHedge is back up on the Finviz blog stream.  

"Hyperbolic" must have been the magic word.

LMAOLORI's picture



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

GetZeeGold's picture



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.


Vincent Vega's picture

If you become a banker you can just steal what you need.

Winston Churchill's picture

0.25% would be good.What good for the goose...

Damnit Ben just pay us to have mortgages,

gatorengineer's picture

Why stop at positive, I think we should go straight to negative mortgage rates.....

BlandJoe24's picture

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.

LawsofPhysics's picture

But how many "fees" and "bonuses" were created for bankers?  Get the motherfucking guillotines out already.

bigdumbnugly's picture

uhhh, quick, liesman's take will be...

got it:  jobs are a lagging indicator.

101 years and counting's picture

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.

MiltonFriedmansNightmare's picture

The goal is to extract every last dime from the middle class, a goal that's well on it's way to realization.