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Stocks Slump As Bernanke Admits "Doesn't Have Tools To Ease Fiscal Cliff"
For the third time in a row, a speaker from the Fed has opened their mouth and the market has fallen in. This time, unlike Yellen's silliness, Bernanke admitted a few ugly truths by removing hopes for an IOER cut and bluntly explaining that the Fed 'will not go back to work' to help Schumer and his fiscal cliff buddies:
- *BERNANKE SAYS FED ABILITY TO OFFSET HEADWINDS `NOT INFINITE'
- *BERNANKE SAYS FED DOESN'T HAVE TOOLS TO PREVENT GOING OFF CLIFF
- *BERNANKE SAYS HIS FISCAL ADVICE IS `DO NO HARM'
- *BERNANKE: WRONG TO THINK INTEREST ON EXCESS RESERVES MAJOR TOOL
S&P futures fell around 8 points as he uttered these words but was rescued by some anxious BIS scrambling in EURUSD, before falling back to reality (along with AAPL).
S&P 500 futures...
Leaving S&P 500 futures at yesterday's day-session open...
and AAPL at yestereday's VWAP now...
Charts: Bloomberg
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It would be far better if bernanke had have broken down, citing the existential crisis he feels daily and the bleakness of rapidly approaching mortality... how surreal would that be?
we would easy hit new highs..
step 1
admit that you need help (Bernanke: "I just can't do it anymore")
Step 1: Admit that you are POWERLESS over the markets / your printing addiction. That you life / nation has become UNMANAGEABLE.
Fed = Disease in Action
Step 2: Something greater than myself has the POWER to restore the markets
The pos has all the cows in the slaughtering bin and is getting ready to process them.
HP = natural order of things which have been centrally perverted. homeostasis will be achieved.
Marc Faber keeps a picture of Bernanke in his toilet.
Now, I don't know how that relates to anything other than the fact that this is probably the best place for anyone to keep a picture of The Bernank, but I just wanted to share that with everyone:
Marc Faber: "I Keep a Picture of Mr. Bernanke in My Toilet."Re-Upload America and Restore the Original USA Constitution.
why you wiseguy... Demographics rule going forward. That paper is gone. There is a new sheriff in town and he is giving out all kinds of cool free shit!
Did I miss something? When did Jean Paul Sartre take over the FED? Just shut up and print. It's the only reason they keep your sorry ass around.
Well living in Bad Faith as per Sartre's definition is something that Bernank certainly has been doing exclusively. He has limited himself with the label Fed Chairman which in turn limits his freedoms such that he can ONLY PRINT. It followes a la Sartre that a man with infinite freedoms has objectified himself into a singular existence of that of fiat printer and as such he is no longer a man (with freedoms) nor is he capable of empathizing nor putting himself in anyone else's shoes since his objectification of himself is total; Bernank is nothing more or less than Fed Chairman. And as Sartre knew all too well, you can't ever fill the gaping hole of nothingness inside yourself with unlimted fiat, or any other (no)thing. So it truly is an existential quagmire that is now plaguing us all and the reason why anything centrally planned or banked is ultimately so dangerous: one man's existential crisis more at limitation of being can make the entire collective consciousness existentially objectified into total slavery.
Then they've chosen the right guy. For their purposes.
Jean Paul Sartre? Awesome!
You're saying The Bernank is Descartes!!
Actually, Sartre always disagreed with Descartes' cogito. To Sartre it was I am, Therefore I Think.
So for Bernank he is as function of his role as printer. Put another way, if one were to strip Bernank of his printing powers he would cease to exist (as the limited objectified person that he is defining himself as, unable to free himself from his printing which is what he defines his is-ness or more apropriately thing-ness by.)
My niggas we are all fucked by the Being and Nothingness of TeH FeD as objectified by its chairman!
Bernank, don't go existentialist now!!!
you mean "make Zero Hedge admit "i am Ben Bernanke and Market God"...then proceed to blab some more and "see what happens."
Is this an admission by the FED (and thus, its beneficiaries) that they expect us to go over the cliff? [or is it simply meant to bolster ambiguity?]
I suggest you ask Wile E. Coyote and Road Runner about that cliff. Usually its a long ways down before you hit bottom.
Its not the fall that kills, its the sudden stop.
But I thought he was all about building confidence. That when Americans felt they were wealthier (because their stocks went up or their home price went up), they would go out and consume. Gotta get the flow flowing.
At the end of the day, everyone knows the FED never had any methods to defeat what ails us... the FED instead does the only thing it can, attempt to manage perception. The problem though is that it has to manage both perception (in an effort to build confidence), while at the same time maintaining an ambiguous stance, so that everyone doesn't pig pile the trade. The act of managing perception then is completely subservient to the necessity of ambiguity... every once and a while, they have to compete for the same real estate.
The FED is out of bullets, all they can do is print more money.
http://ericsprott.blogspot.ca/
You sure about that? I heard they bought some hollow point rounds.
ECB, BOJ, FED, BOE, PBC, BOC and so on are all out of bullets. The writing has been on the walls for years now.
Either they engage in a massive globally coordinated PRINTFEST or we are all going down the drain collectively.
Wrapping Greece's problems in a star spangled banner and you've got "fiscal cliff".
They don't stop printing. The question is how much they are printing, and if rates are low, they are printing a lot.
Just because Bernanke talks the market down does not mean he isn't inflating fiat away.
The FED is out of bullets, all they can do is print more money.
Yes, what they've been doing all along, and that "bazooka" ain't near done, Bennie can keep printing till the damn currency collapses ...what he apparently plans to do.
There's no "fiscal cliff" up ahead, not when Bennie will print and print and print all the currency the govt wants. $20 trillion debt? No problem. $30 trillion debt? No problem. It's just numbers in a computer, keeping score, that's all.
Might as well give Timmy what he wants, remove the debt ceiling, it doesn't matter anyway. I think they should borrow $5 trillion a year, get on with it, collapse that damn currency, I'm tired of this long drawn out farce.
I too am tired (sick to death, really) of this long, drawn-out farce. Enough already!
Wait....you mean people actually believed Bernank would fix the fiscal cliff? What kind of insane asylum world am I living in??
Or as Roubini would say, "Theee Fed is out of policy boooolets".
'You toucha mah T-beeels, I breaka you face!'
Thank god he didn't bring up all the Treasuries he is about to buy in QE4. Don't want to encourage those ratfinks in congress.
So, let's see. Obama get re-elected, market dumps, Yellen opens mouth market dumps, Bernanke opens mouth, market dumps.
Seems to be a trend developing, certainly in the opening mouth department...
DavidC
bearish jawboning
They are trying to put out deflationary expectations because they are about to print a shitload of money..again. There is nothing but hyperinflation coming...maybe hyperstagflation. Whatever it is, it is going to invole a whole lot of money and a whole lot of lies.
*BERNANKE SAYS FED DOESN'T HAVE TOOLS TO PREVENT GOING OFF CLIFF
But Bernanke may soon gain the tools to read the email of his critics. Dig:
http://news.cnet.com/8301-13578_3-57552225-38/senate-bill-rewrite-lets-feds-read-your-e-mail-without-warrants/?part=rss&subj=news&tag=title
Beyond UFB ...
No need for a tool. Just sent him email via his address at the FED.
This doesn't look right as causation.
I'm wondering if a leak came out of the Fin Min mtg and Greece is not going to get money.
it's not what the Bernanke said, it's that he finished talking that killed the market.
Where in the hell is Beeks?
...nnnnnaked shorts and mmmmmuppets
Middle East ashes
Mr. Robinson's neighborhood
we all fall down
...bitchez
"slaugtherer" is frantically unloading his longs this morning
'Oh, happy days!'
We need MOAR TOOLS!
Bay from Mish? It's tax haven...!
Bay the Golden Gawd from planet Krypton.
It is I Tax....good to see you pal.
Cue to DO THE PAVLOV: SELL "risky" precous metals and BUY "safe" government bonds!!!
Hahahahahahaha.....!!
Just say "thank you" politely ,and mutter under your breath what you really think.
Last chance to buy at this price,don't knock it.
"BERNANKE SAYS FED DOESN'T HAVE TOOLS TO PREVENT GOING OFF CLIFF"
Really? No shit Sherlock. Perhaps it's because of all this imaginary debt produced by the Banksters? The world doesn't owe you not one square dime. When the time comes, and it's coming. You'll be lucky to escape with your life. I doubt that.
Bernanke says these things while he buys $40B worth of MBS and $45B worth of USTs every month and you day traders think he is not getting his boots wet?
Do you day traders know what banks do to their assets? They leverage them. That is what they do. That is how they make money.
So after the Fed buys all of this toxic debt they fractionally reserve their assets and lower the value of the dollar.
Economics 101 class dismissed.
REALLY???!!!
Weeks away from potentially pulling the world into an ecomonic disaster,
and where is the President and Congress?!!
The President is in Cambodia, and Congress is home for Thankksgiving.
Lazy, fake concern..... Congress can legally front run, so you know they are all short already.
critical mass...bitchez!
Maybe even critical mess.
"When it becomes serious you have to....tell the truth?"
Something stinks.
Maybe the realization that we've run out of road,to kick a can down.
Trouble is that was a decade ago really.
$6T a year in GAAP deficit spending Plus $16T in debt.
Anyone know a good,cheap, bankruptcy lawyer ?
When it becomes serious you go out in public and in essence state they ain't gonna lay the crap on you when it all hits the fan.
Besides, now that the election's over, his own mandate is most likely not gas the rampola but brake the slide.
You mean...the ability to print money can't redeem a failed government?
Whocouldaknowed. Unpossible.
Ben to Mario... OVER
What is it Ben? I'm prepping a tapebomb for the European session damn it! OVER
Did you catch my conference this afternoon Mario? OVER
CRICKETS... followed by sounds of kitchen sink flying through glass window...
Is it me or did Ben intend to crash the market today and the market is not cooperating?
He saved my ass. I open a risk short trade earlier, and got out with a small profit... Now I just reversed it for the 3:00 p.m. ramp up. ;-)
Haha. Good for you man. My guess is this is a setup. O is going to push us off the cliff or get everything he wants. Bernanke admitting the fed has whiskey dick was just a feather in O's cap when he throws this at the repubs and accuses them of not making a deal. Boehners biggest mistake was having O jump out of that birthday cake in a G string and pat him on the back.
Hey fonz we are big time FUBAR! The fiscal cliff is just a diversion.
I'm sure you have looked at all the posts on this thread so I won't elaborate.
Earnings are screwed, the global economy is slowing down. They can print all they want.
All they will succeed in is causing massive social unrest when the masses can't afford to feed themselves.
Oh I hear you. I just mean it is just part of the play. I agree with you on the big picture.
I am watching CNBS, Cramer keeps storming all over the set and leaning over people. I hope he has awful breath. I think in a few years he will look just like that NYPD Blue actor Dennis Franz.
Good comparison. Cramer needs to load up on the Twinkies though. He's a little "girlie man"...
3:00 ramp came in a bit earlier than expected today. Hope you were still able to benefit.
Bernanke: Tell me my dear what can I do for you?
Lady Liberty: Chairman, my economy for 5 years has languished in the gutter, if I don't get it out soon it will surely die, I throw myself on your mercy, I'll do anything...
Bernanke: Anything?
Lady Liberty: Mr. Bernanke I was raised in a convent. I don't indulge in pleasures of the flesh
Bernanke: You don't print out, the economy don't get out.
Lady Liberty: Chairman, I simply don't do it.
Bernanke: Come on, you do it. You love to do it. We all do it. You do it...
Lady Liberty: No, I don't!
Bernanke: I do it, I love to do it. I just did it and I'm ready to do it again, don't tell me you don't do it! Now you either do it, or your economy dies, it's either Pump or Death. You got 10 seconds to make up your mind...PUMP...DEATH...PUMP...DEATH...PUMP...DEATH...PUMP...DEATH...PUMP...DEATH...YOUR TIME IS RUNNING OUT!!!
https://www.youtube.com/watch?v=p9a5-E5Zk3w
S&P futures fell about 8 points - WOW! Wake me up when there is a REAL correction.
Bernanke et al talk shit and jawbone the markets down in an attempt to force politicians to come up with a cobbled solution to the fiscal cliff. Drop in the s&p impacts 401k's and leads to politicians getting fearful of their inaction costing them their spot at the trough in the next election.
I expect we'll see more of this over the next few weeks.
Well played benny, you cunt.
Agreed.
The Bernank is not looking out for Joe Sixpack. He doesn't do their bidding.
Did you hear it?
Did you hear Ben hint about raising rates?
He made a strong suggestion that "as the economy improves" rates will be raised.
So what reason other than propaganda would the BLS put forth less-than-truthfull employment statistics? Housing "recovery"? Why, so the FED can raise rates of course!
They will do it. People say "they can't" because of the interest on the debt, but what would that matter if you are willing to drop $6 Trillion in four years and $40 billion a month in perpetuity for MBS's?
Bank bail out part two. Raise rates, have more foreclosures, get that credit card interest up along with ARM's, collapse the American Household - bleed every last penny out of them - force them to cash out IRA's and 401K's at higher penalty tax rates - milk every last cent of Mom and Dad's and Grandma and Grandpa's - 50% death tax on every estate, 25% on the sale of a home if you have any equity.
Get ready main street! Anal rape part II coming soon!
It's an interesting viewpoint ebworthen. But I look at the way they are using Sandy to skew every data point. I think they play up this "recovery" like you say only to have something....Europe or something dump and use that as the "damn we almost were at full recovery until...." so they can keep rates low etc.
What tools does the FED really have?
Lower rates, raise rates, lower rates, raise rates...
What did old Greenspan do in 2004? He raised rates.
After they had everyone take out a home equity loan and max out their credit cards, the mfuckers raised rates.
This induced the crash of the housing markets and the markets in general. So now the FED is buying $40 Billion a month in MBS's and I see reverse mortgage and equity home loan commercials again. Rates are at all time lows. So...what does the FED have left?
Raise rates.
Lets see here -
So whatever the "grand bargain" reached to not go over "cliff" there is no growth.
Gotta buy equities right?
Yep, seems that way - pushing us all into stocks.
So again - whats was actually done again in the past week that we are back to BTFD? Lol more talks and plan to plan the plan that will fix europe. Deja vu all over again, yet the markets fall for it everythime. Or should i say algos.
I watched much of the speech. They applauded at the end. What I took note of was his comments on how they want to make programs so that these empty homes across the country can be rented out.
That is code words to me that section 8 is gonna blow up. HUD is going to get billions more for the section 8 program to pay for poor people's rent. Wealth redistribution. HUD will get billions more on top of that for administration costs to run the program. More wealth redistribution. And there will be some bank along the way that will get billions in fees to manage all of this money. Rent payments on card styled similar to the SNAP system. More wealth redistribution.
Just both 40 more silver eagles.
Why can't Greece afford that?
Fiscal Trampoline not Fiscal Cliff
As the end of the year approaches all of the liberal media's psychopathic hysteria about the 'Fiscal Cliff' is laughable. America is not heading for a 'fiscal cliff' but is instead heading for a 'fiscal trampoline'. Since all of our government's egregious deficit spending is now permanently entombed in the budget, by virtue of baseline budgeting malfeasance, congress is going to launch America still higher into the rarefied air of insolvency.
Politicians have printed so much money to pay for our ravenous appetite for big government that it has concocted a rhetorical trampoline to throw all of its budgetary bungling up in the air and out of sight thinking that it will never return to earth again. But once again all of deficit spending that was launched into the air by congress at its last debt ceiling trampoline launch is heading back to earth.
The trick for all of our clownish politicians in congress is to keep moving the fiscal trampoline around hoping to place it directly under the descending pile of debt in order to relaunch it back into the air and out of sight for another few months. This sordid political circus act will go on for years to come until the debt burden becomes so large that it will even collapse the fiscal trampoline and create a hole so deep that it will go straight through to China.
He won Obama 1 election, maybe now he'd like to rescue some semblence of credibility? At least not to be loughing stock for the rest of his life, after it all goes south.
Or it's just Greece's medicine being readied for the US of A.
the bernak doesn't decide shit. he does as he's told like the rest of the good little talking heads.
Bernanke has been bailing out the banks. Fiscal Cliff = Reality... now or later; the longer we wait, the worse the pain.
On Nov 16, a primary bear market was signaled by the Dow Theory. Thus, the odds favor downward movement. Technically, the market is heading south. Bernanke will have a tough time reflating the balloon. Headwind for QE.
http://www.dowtheoryinvestment.com/2012/11/dow-theory-special-issue-afte...
Bernanke creates the cliff largely by allowing Congress to operate without a budget under Obama. Gets Obama re-elected with his wealth affect by buying every US treasury he could get his hands on for the last four years. How has that worked out? Well we have more people on long term unemployment than ever. Food stamp and disability rising enormously. Social Security is closer to failing because of the flattened yield curve. Seniors and others on fixed income are worse off with no return on savings. Banks can't perform typical safe strategies because Bernanke has flattened the yield curve forcing everyone into riskier assets. The US loses it's AAA credit rating for the first time ever and will likely see further declines. Don't tell me Bernanke has not been warned it's coming again.
Now he finally admits that he has no clue. Hell, I knew this at least four years ago. I got a Bernanke Put for ya. Put that bastard in jail.
Bullshit, Bernank. Paying interest on the reserves is the only reason we are not in another fully-fledged credit-generated asset bubble right now. We know when it gets bad enough, you'll stop paying those banks to hold money and they'll flood the market with easy credit we want and will need now we're just going to print so much money our incomes won't keep up with the inflation.
This sounds like pure posturing from The Bernank to motivate Congress to act. We all know damn well that The Bernank stands ready to print to infinity if he deems it necessary. The Bernank also said today he wants the federal spending limit to be raised. Imagine that...
Pure posturing.
Pure FUBAR.
What goes down, much go up - algo rule number 13.
Fucking algos.