Remember Hilsenrath?
There was a time when the Fed's unofficial mouthpiece, WSJ's Jon Hilsenrath, who eagerly and promptly put to print anything the Fed deemed worthy of leaking to the access journalist, was relevant. Perhaps the only positive side effect with the advent of QEternity, which essentially took away the "surprise function" from the Fed as everyone now knows what will happen in perpetuity or until hyperinflation arrives, whichever happens first, was making such leaks as Hilsenrath completely irrelevant. After all, when the Fed has shown its cards to everyone, even as it keeps doubling down and pulling jokers out of its sleeve, those who "share" the Fed's thoughts have become completely marginalized.
Today was one of those days when Hilsy strove to regain some of his former glory releasing the Fed's his take on today's NFP, which said absolutely nothing new. Yes we know even 500K jobs created a month will not end QE, and neither will 1MM, or more: after all the US still has $1+ trillion deficits needing monetization as far as the eye can see. In fact, the only thing remotely useful in Jon's article was at the very end...
From the WSJ:
The Fed is beginning to consider other matters, which could come up at its next meeting, though officials are unlikely to yield quick decisions.
Officials are starting to discuss a new strategy for winding down their easy money policies. It would involve holding on to their securities for longer-than previously planned. They also have been talking about tapering off the amount of their asset purchases once they decide to stop the bond buying. But they haven't fully weighed pros and cons or neared a decision.
So was all the FOMC minutes posturing in the past two sessions actually real? Or is this latest Hilsenrath plant merely one more attempt at "headfaking", and pushing the DJIA ever furher into the stratosphere. And if not, will the next Fed statement really stun the market when Bernanke brings up brand new language discussing the wind down of "easy money" - a statement that would send the ES lower by 100 points in milliseconds.
Who knows.
Frankly, does anyone care what the centrally-planned policy vehicle once upon a time known as the market does going forward?
The bottom line is this: as long as the Fed has control over reality and people's perceptions, it will go up.
Once the Fed loses said control, as it always has done sooner or later in the past, the market will collapse.
Do we really need someone overcomplicating it far more than this?
(24 votes)
- advertisements -
»
- 13107 reads
- Printer-friendly version
- Send to friend
I read Mr. Kim´s article on gold yesterday. When I get back to Gringolandia, I am BUYING again! In decent qty too...
Fed, .gov, leaks, corruption, banks... Ugh.
Moar gold for me!
mister fed, meet mister martingale
wikipedia article on martingale
The strategy had the gambler double his bet after every loss, so that the first win would recover all previous losses plus win a profit equal to the original stake.
The martingale strategy has been applied to roulette as well, as the probability of hitting either red or black is close to 50%.
Since a gambler with infinite wealth will, almost surely, eventually flip heads, the martingale betting strategy was seen as a sure thing by those who advocated it.
Of course, none of the gamblers in fact possessed infinite wealth, and the exponential growth of the bets would eventually bankrupt "unlucky" gamblers who chose to use the martingale.
Are they over complicating things?
Well, given that wonderus 6.5% unemployment target at which time tightening will be considered, and that the rate sis calculated by the BLS which is beholden to its overseer and financial enabler, Congress, who like easy money... you can betchur sweet ass that....
U never falls below 6.5% Just add a few folks back into the workforce and call it success!
And as inflation eventually picks up as "V" rises, which it inevitably will, inflation surges...
Then you get Wage and Price Controls
Why? Because the folks now in power gonna stay in power. Why? because they got the Free Shit Army voting for them and the Opposition side of the other One Big Party can't find it's identity in the sunlight. Meaning more statist intervention into markets...
You get the picture.
Opah, Bitchez.
That 6.5% U rate declaration has basically put all the talking heads out of business.
It's all the Liquidity Effect.
PNC BANK to close 100 s of branches slash Jobs
(But this guys will start as a WM greeters) so no job losses
http://www.newsnet5.com/dpp/money/business_news/PNC-bank-set-to-close-hundreds-of-branches-slash-jobs
Perhaps CONgress will have to pass a bill extending benefits fo 990 weeks eventually? Eventually the U will go down when just 100 million are participating. What's the next bogey for the FED? Deflation? Catch 22.
Just when everyone is 100% certain it never stops, it stops.
Makes no difference to me... As soon as one of these paper notes gets in my hands I spend it on something useful... The government must love me ~ I'm doing exactly what they want [they didn't tell me it HAD to be at the Mall]...
Yep. I'm going to be a good consumer too. Last weekend it was silver, this weekend it will be some full hides. Ben, you lovin' me now, biatch?
Hope yer talking Banker hides. I'd really like a banker hide wallet. I'd feel real safe with my FRNs and credit cards in one of these.
Who's in your wallet?
Remember.....to sustain the markets, it's about FLOW, not STOCK.
Correct until............no more securities to buy.
What is left to buy?
Go to 3.30 mins in and Schiff gives a great explanation on Hilsenrath's stupidity,
http://www.europac.net/media/video_blog
I'm at work. Somehow the firewall is blocking the video.
I'll watch it at home.
the good news just keeps on coming,bro
the thicker the lies, the closer we get to the date where your latest predictions coming true
there isn't enough duct tape in the world to keep this bullshit system from falling apart
Hilsenrath is the laughing stock of Wall st........
among many others.
Lateral right, lateral left
mix it all up and rince and repeat.
Confuse em, propaganda them, gobbledygook em and LAUGH AT EM
I think I got everything. There's a steady stream of suckers for this horseshit
The whole system relies on COLLATERAL.
If you have $1000 you can put it into a deposit account or buy some stocks.
But if you have hundres of billions you can't put it in a deposit account. Since there are no more stocks left to buy, all they can do is buy.....treasuries.
But wait....the Fed is buying up all treasuries. Also, the Fed has to buy something in order to create money. Fed can't create money by pushing a button, they have to buy something.
Question:
1) How can the Fed create more money to give them to primary dealers to pay for their CDS payouts?
2) Where are all those trillions going to be parked as collateral?
You see, it all hinges on AVAILABLE COLLATERAL for people or institutions which have billions. Not much left, hence the Fed is limited to creating money by the AVAILABILITY OF COLLATERAL and people who hold trillions can't park the money anywhere due to LACK OF COLLATERAL.
IT IS ALL FUCKED. The Fed is competing to buy the same scarce treasuries with people who received the money the Fed printed by....buying tresuries thus removing collateral.
It seems to me the Fed is buying treasuries faster than the congress can approve debt limits.
LOL, I think you just described a ponzi scheme.....
It's a very good analysis though.
They're running out of moves, wait...they are out of moves.
Insiders are puzzled over which solar powered green house to buy
or which country to vacate to.
I don't know about you but that's kind of a TELL....
The Fed Balance Sheet: What Is Uncle Sam’s Largest Asset?
1. U.S. Official Reserve Assets
2 Total Mortgages
3 Taxes Receivable
4 Student Loans
http://www.financialsense.com/contributors/doug-short/federal-government...
5 Bullets
6 Jackboots
The question is: Who will buy the $85 bn per month when the FED stops. The sheiks, the Asians?
USA residents with IRA and 401k accounts... with or without their permission...
Bundesbank Balance Sheet . What is Pleitegeier's Largest Asset ?
1. 3200 T Gold, three quarters of it at Liberty Street 33, NY
2. 1 Tr. € in PIIGSF Bonds
3. 1 Megaton Houpium
4. 1 Megaton Changium
5. 1 Gigaton Stupidium
Can't match dat ...
I excercise using my gold ingots, double benefit!
I tried that but unfortunately their weight under water does not give much excercise so, I'll stick with the beer curls and live with the 12 pack abs.
WHen the management of perception is the only tool left, stating the truth will brand you a domestic terrorist and earn you your own personal drone strike. Now, repeat after me, 'All is well, things are getting better......."
You would think that the same damned trick, every fucking month would get old, but it's like playing fetch with a dog, they never get tired of the game.
Yea, I can hardly wait till morning so I can run to my computer and try to figure out the cryptic message the FED lays on us next....
And like a bug to light people hang over every bullshit passage like they're uncovering the greatest mystery ever told.
I tell ya what it is...THEY GOT NOTHIN
rat
The earlier article on the return of the 36,000 DOW sums it up. The final sign will be when the sheeple go full retard and the final bullish run to armageddon starts until, it well, just stops.
Keep the faith bitches. A nice tune for ya'll :)
https://www.youtube.com/watch?v=2dUJ_BNhYtg
We here are all so tired of this manipulation and false promises. "Collapse" already. I am afraid it will still be a while. But the end is out there, just not quite in view over the horizon.
all the super-rich..the 1% have held equities from 2007 to today. partly because they hold these for dividends. once the s&p500 gets back to 'even', they would be fools not to sell and take the cash out of the fed pumped market. hedge funds and pension funds cant sell....the retail holder is mostly out back in the flash crash.
i hold that we will have a masive sell off when the s&p500 hits all time highs.....
I tried to explain to my statist friend, who was trumpeting the rise of the DOW, that, to FL_Conservative's point above, people are trading stocks at a higher volume to keep the casino going, not buying them. I used the example of Monopoly where the game ends when the players run out of money, so the banker just creates more, but new players don't suddenly appear with cash in hand.
He was more confused than a baby in a titty bar. I told him that he shouldn't vote again until he understands how money is created and the machinations of the casino. Then he said something about the war on women and I called him a faggot and told him to hit his putt.
You both suck, golfing is so gay.
Not when beer is involved.
It's just an excuse to drink all day. If we tell our wives we're going to hang out in a bar for 6 hours, we'll get nagged. If we drink for 6 hours outside and chase a little white ball in the process, we're good to go.
ROTFLMAO...
Are you "Rolling on the floor laughing your (my) ass off" or vomiting. I never could get that straight.
Careful.....
Some years ago the 2 foursomes in front of us got in a shouting match because the one behind the other kept hitting into them. As they were going down the fairway next to us, they started running at each other all pissed off (this is golf, remember) screaming, threatening, waving clubs. One of the guys wives called the other a "bully" the bully threatened to stuff his 7 iron down the other guy's throat and one of our guys...a retired DA yelled "Use your tire iron."
Friend of mine owns a golf course. He was having trouble keeping his maintenence help so he decided to purchase 3 shiny robots to cut the grass and rake the sand traps. These shiny robots were doing a fantastic job and the golf course looked fantastic. The only problem was that the golfers were complaining that the sun was reflecting off the shiny robots and 'blinding' the golfers, he was upset and was unsure of what to do............Alas, one evening he decided to paint the robots black........The next day, 2 of the robots called in sick and the third one ripped off the proshop...........
I love that joke and find it even funnier in this scenario because my golfing buddy is black and I've told him that joke. He makes fun of his own people more than anyone. He told me a great joke: How do you know that Adam (of Adam and Eve) wasn't black? Ain't no way a brotha is givin' up a rib.
Like every Sunday, Jim and his foursome hits the links. While waggling and readying himself for his tee shot on the 9th hole, Jim suddenly and politely paused, removed his cap, bowed his head, and remained in silence until a lengthy funeral procession drove by on the road bordering the hole.
"Wow" was the response from the rest of the foursome... shocked of the level of respect the golfer showed.
"What do you expect?" said Jim. "I was married to her for 35 years."
the longer the 'economcy' spends near 0%, maybe .7 or 1.1, the more likely the chance of it falling into negaitve. since we are in a 11trillion stimulus 'recovery', though recent metrics point to much slowing, what will a hard-working fed do to have an impact (or even give the illusion of influence) with a technical recession (despite realtors and dyrwallers' claims of economic normalization)? it starts with banning short sales or selling in general, but for our own good, to protect the free market.
. On February 26th last, Bloomberg ran a story of complete factuality. It reported that the top risk assessment company MSCI had just completed a stress test on the U.S. Federal Reserve System itself. The test found that the market losses incurred from QE would be some $547 billion over three years. That is many times the value of the Fed’s capital, and thus technically, the US Federal Reserve is bankrupt.
It would be the job of only a minor-league spin doctor to rubbish the report, were it not for the fact that MSCI is the company used exclusively by the Fed itself to undertake stress tests on the Big League U.S. banks.
Source: http://hat4uk.wordpress.com/2013/03/07/monti-paschi-suicide-sparks-banker-terror/
I wonder how long the Fed will defer auditing the quality of all those MBS's they bought from the TBTFs?
Has everyone else been lying about MBS Quality bonds?
When it comes time to pay the piper on the $547B, the intern in the basement of Mariner Eccles will just pull up the spreadsheet, click on the 5 then 4 then 7 keys, followed by a bunch of zeros, click Ctrl-P,
and
Voila . . .
Problem Solved.
Why should it be any different then, than it is now?
Ben "Jack Traven" Bernank must keep the Treasuries printers whipping out BernanxBux at the minimum rate of 85 billion revolutions per month for things to not implode.
This pace can't de-celerate or Jamie & Lloyd will blow up the 401(k)s!
What would Keanu Reeves do?
Refuse to take a bath, like he always does.