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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?
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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.
Paul "Having A Schrizophrenic Meltdown" Krugman is out with his latest OP/ED drool, The Market Speaks (while not mentioning the trillions in fiat the Fed is pumping into all things including stock "markets") in which he praised Obamney for the stock "market" recovery, claiming this is vindication of Obama's free market principles, yet goes on to state that the economy is absolutely horrible (even though he began to speak of how robustly the economy was turning around approximately 16 weeks prior to the presidential election, praising Obama -- all while hawking his book "End This Depression Now!").
If there's ever been more of a political hack dressing up in camouflage as an economist, I've yet to see them.
The Dude knows kung fu.
I'm buying more silver this w/e. That inverted pattern on the daily chart looks like we go back into the 30s over the next few month. ;-) 200day ma is 30.80. The 50 & 100 day are starting to bend upwards.
P.S. Hilsenrath is a derp shill dikwad.
What if it doesn't? According to some who no longer post here, we should have had it already. What if we just end up looking like Japan? I guess you could argue it will arrive, someday, in maybe 300 years, then your call would be correct. No? What if, what we have now is in fact the "new normal"? Nothing will change politically, The People have never demanded it. In fact, they send politicians back into office at a 90% rate.
The Fed, CONgress/FASB have all played a hand in distorting everything, including massive criminal activity still not prosecuted, but The People allowed it. I think these kind of financial shenanigans will continue a lot longer than most think. Mindful I'm on Zero Hedge and it's not the prevailing belief or thought.
I would agree, except I think you underestimate the level of greed and soullessness of the TPTB. They will collapse this bitch so they can buy it back for pennies and they don't care if we are eating our young to survive. The same sheep who send incumbents back to DC at a 90% rate will believe TPTB when they blame it on capitalism.
They're going to do a "boy plunger" very soon, or what Jamie Dimon told the Senate Panel he was Kabuki Theater'ing before is a normal event that happens every 5,6 or 7 years with regularity (as he explained to his 7 year old daughter over breakfast when she asked her dad "what's a financial crisis, papa?").
The Wall Street Ponzi only really makes what it considers fat bank during "boy plunger" events. Underwriting IPO subscriptions, charging commissions on Muppet accounts and consulting fees are chump change, bitchez.
Yup, think like a banker who has so much power he no longer lives in reality to know how many ways you'll be fucked.
I don't work in finance, but were "they" to collapse the system through hyperinflation, doesn't that make them just as broke as their paper money would be just as worthless as ours?
Not if they short everything based on insider knowledge before it happens. They get richer on the way down and get retarded rich on the way back.
They make the money out of thin air, how can they get any richer?
It's not about money, it is about control. The money itself is meaningless if it doesn't grant them power.
That's an excellent point, fuu. It really is beyond money. I'm guilty of thinking like a mere mortal.
Your point reminds me of this from G Edward Griffin at 1:32:20 http://www.youtube.com/watch?v=lu_VqX6J93k
That my friend, is where you, the average retail investor/member of the general public/bagholder come in. At some point the rise in the markets, coupled with the endless stream of bullshit from the MSM is meant to convince you to 'get back in the market, BEFORE ITS TOO LATE'. Presumably, the 'CASH FOR GOLD' guys already have relieved you of your 'old gold'. Then, having 'positioned you' long stocks and out of gold, it will be safe for them to stand aside and let the system fend for itself.
+1 Key word that "bagholder"
Northeaster, I've said this, and history is on my side. When the serfs stomachs are growling from hunger pains and repression, and death seems more palatable than life> the SWHTF.
Centuries ago lack of information and population allowed corruption to go unchecked for longer periods of time. Take look at the boom bust cycle timeframe over the last 100 years if you don't believe me. Thanks for your post.
At least I'm receiving some decent opinions in regards to my questions.
Your post brings up an interesting point (in my mind). Since 2008 we have seen almost 25 million go on SNAP benefits, meaning there was a perma-class of approximately 25 million before that time frame. Besides homeless people, the government has gone to extraordinary lengths to feed The People & put a roof over their heads. I think your point would be valid should another 50 million start to go hungry and lose their roofs. Politically speaking, the past 12 years have been extraordinary, yet nothing happened. Why? Is it Americans have started to become passive, even though we occupy a vast amount of theaters with our military? Fear?
I would agree with you in the sense that until the day arrives that The People have nothing left to lose, that jail or being killed is no longer a deterrent, then your point is valid. Only valid in the sense it would take a lot of People put in the same extraordinary circumstance at the same time to rally together for a common cause. Or, we stay permanently fixed to the 50 million or so we have now from this point on dependent entirely on government, and this is where we stay going forward?
I don't know, my guess is I'm not alone. However, speculating on various scenarios is interesting, especially here on ZH without the "Gold, Guns, Collapse" crowd chiming in.
Thanks for responding.
until the day arrives that The People have nothing left to lose
"Gold, Guns, Collapse"
Slamming of the PM markets. $4.50 gas. Gun-control legislation.
There are no coincidences.
It's not about quantity Northeaster. We aren't living in the dark ages. It doesn't take huge armies of peeps to send a message.
We are living in extraordinary times. Even you can't deny that.
People on both sides of the isle are starting to coalesce. Well planned strategies are what the next uprising will be about. If you think 300 million people are going to throw themseves in front of a gatling gun you are mal-informed. I have lots of friends in the military and they are not happy with TOTUS!
Being a member of the "Gold, Gunz, collapse" crowd, I feel compelled to respond to your seeming prejudicial attitude. I have come to the conclusion that the US is in or on its way to collapse mode sooner than later. Considering that I think that this will happen within my lifetime it is only prudent to takes positive steps to protect myself.
My opinion of future collapse is based on years of real life participation in life in this country, coupled with certain participation in business and financial markets and even more study of same. Therefore my opinions are, at least, thoughtful and my actions prudent.
Putting aside any prepping I might be doing, I think we are only apart on the timing not the eventuality.
With that said, I feel I am being very prudent in my actions and whether or not calamity rears its ugly head I can capitalize on my investments in preparation. Whereas if you are wrong in your timing, what’s in your wallet?
I will concede there should be some balance as too much doom and gloom does not leave a place for happiness and glad tidings.
Everyone knows what is happening and thus they go through with the charade. Whats the alternative, they know that as well. Comes down to, can the Fed pay for everything forever with magic beans because if they cannot and I don't see a lot of ZHers buying that they are fucked. So keep the glove puppets talking it up and the Wall Street sharps will play along but once it gets out of control it will really get wild. Far more interesting then the Great Depression.
By the skillful and sustained use of propaganda, one can make a people see even heaven as hell or an extremely wretched life as paradise.
- Hitler
the Cartel has made billions with free money from the Fed. when the Fed hints at withdrawing said free money, it will send the hapless sheeple masses to the mirage in equities. and AGAIN the Cartel will make billions liquidating and shorting the market on it's way into the abyss, where it will AGAIN make billions buying at fire sale prices. i guess it IS rinse and repeat for these fucking manipulative scumbags.
IMO, that's what has been powering the Kondratieff cycle all along, 2.500 years or more. Feed, fatten and slaughter.
Not credible over such a long time, you say? Well, aren't there "cultures" or "belief systems" that have been along unaltered for all that time? And which would happen to have an opinion about everybody else ("cattle") which could support and/or "justify" the above "agricultural" cycle?
The cradle of manking is in NE Africa, from where the first humans moved into the Middle East and on into Eurasia. Plenty of genetic, linguistic and other evidence seems to suggest that two of the twelve tribes (the two mentioned in Genesis 49.8, Juda and Ephraim) actually moved into Europe, where they settled, later to be called "Celts" or "Kaucasians". They as well as everybody else "not in the club" are the "cattle"
So who are the slaughterers? Well, if they have managed to pull this off for over 2.500 years, you can bet your ass that they are well hidden behind layers over layers of distorted history, distraction and name-calling. In other words, the Bible and other "history books" going that far back would certainly have been tampered with, which most reasonably would have resulted in inconsistencies and contradictions.
Indeed, in a letter to king Henry II dated June 27, 1558, Michel de Notredame ("Nostradamus") describes TWO chronologies starting with Abraham, one by what he calls "the interpreters of the Bible" and the other one done by himself based on his studies. He seems to give a hint about whom he sees behind the interventions, as the difference between the two numbers is 666, the number of the beast (see "The Nostradamus Testament" by Ray Nolan).
To find out who the bad guys behind the curtain are, we would probably have to study mountains of books, be one of their old adversaries or manage to catch them on a slip of tongue/sleight of hand, and to my incredulous surprise, apparently that is possible even here on Zerohedge.
Reply #3294402 http://www.zerohedge.com/news/2013-03-02/why-jpmorgans-gold-vault-larges... by a user named "Lewis" was in reply to a post #3250677 by user "Bandit und Buster" (since blocked with posts "disappeared") quoting a certain Baruch Levy.
In the light of the curse in Genesis 49,5 the above fact might, just might, indicate who is behind all these shenanigans.
Should I "disappear" from the comment section as well, remember this:
"Question One, why did the bell ring early, and question Two, where is little Willie"...
Wanted: http://upload.wikimedia.org/wikipedia/en/0/0c/The_Mouth_of_Sauron.jpg
Google translation: It's over..... we know that you know that we know
"Maybe, sorta'-kinda', perhaps, could be, wait and see, blah-blah, shizzle, shizzle."
How long until the newspapers quote "official gold spot price" vs. "mercado paralelo" gold spot price?
Hilsenrath would make a great hair donor.
Seriously, his core competency in the future will be his ability to grow head hair.
Thanks lizzy, that made my day.
If you want to MITIGATE a problem then you catch it as soon as possible, take any necessary pain and then restart with a new plan. HOWEVER if you want to propagate a problem and make it worse, you let it go and feed it.
This should be obvious. The problem is getting worse, not better.
No, wait, let's tell the press to tell the sheeple that if we close our eyes and pretend there is no problem, then it will magically go away. They will never guess that we WANT it to get worse.
Wait, so economy does better, let's just say, and FED thinks, how do we exit. I know! Let's let the debt mature in say 17 years. But, wait, if we don't sell and rates go higher, and our inventory goes lower, how do we tap congress and say..."ummm we have a bit of a loss you guys are going to have to account for."
Oh...and so we can't keep buying the debt anymore...so umm rates will be trending higher (ok, maybe we get there in a week) back to "normal" old normal that is....+ something real rates of return.
Hmmmm. those higher rates are going to be mighty tough for Treasury to fund at.... Fed, "Nevermind" we need to keep printing and buying.
This is so eeeeerily reminiscent of the past 346 times....
Now I absolutely, unequivocally, without an doubt know how Bill Murray felt....
They are trapped, they're becoming masters of lateral moves.
Steve Liesman is acting kinda weird at cnbs right now, he is actually somewhat bearish on the jobs report. He is pointing out the things that the fed are looking at, like what we look at on zero hedge, like real unemployment rate which is near 15%, people leaving the work force, how long people stay enemployed, part time workers increasing, full time workers going down. In the past his boner would be growing as much as his nose when he saw a report like this.
THE REAL STEVE LIESMAN ESCAPED FROM THE CLUTCHES OF THE CRAB PEOPLE. HE WAS ABLE TO OVERPOWER HIS COPY AND RETURN.
He must not make too much sense, for the other crab people will realize what he has done. He once believed he could find the real Jim Cramer in the dungeons beneath the earth, but alas he could not find him. Steve came to realize Jim was a crab person all along, it was him and Maria that allowed the crab people to take over the CNBC studio.
Fuck, it's Friday. I can't take any more bullshit this week. I'm going home.
LIESman is a fed stooge plain and simple. No integrity at all. He's bashing the report because "some" are concerned it might prompt the Fed to pull back. Bad is good, and worse is better in this case. Gotta get the S&P to 1600.
Not "headfaking" -it is really the fed via hilly, 'headfarking" ...you think?
I watched an episode of Transformers from when I was a kid yesterday. If you know the character Grimlock. That is pretty much what I think when I read anything from the mouthpieces of financial journalism.
Fed print money. Me Grimlock like money, me invest in stocks and stocks yummy. Make Grimlock's wallet feel good.
The Fed is pretty much like the writers and Hasbro that decided to kill all the good characters off and replace them with shallow imitations nobody would care about just so they could sell more toys.
Why am I talkin about Transformers? I don't know, it has to be just as relevant as whatever crap Hilsenrath is talking about.
Besies hav you seen what some of the latest Transformers are going for on Ebay? There is a set of combiners where they purposely released only a few of the guy that makes the torso. They sell for $15 retail but people are getting $60 on Ebay. That is one hell of a ROI.
TPTB: More than meets the eye.
Dancing and printing with the STarz; pair Berflunky with someone from Treasury in drag.
stuttering lisping; its QE 4th, 5th 59th, and 69th; se need our SHtimulus.
comon, bernie bernie do that dance....
Sounds to me like he's "walking back" the QE reduction strategy outlined in last August's Fed Research piece detailing the retrun of balance sheet normality by 2018: http://www.federalreserve.gov/pubs/feds/2012/201256/201256pap.pdf
Sounds like the Fed governors will take a pass on that one and go with plan B as long as they've got equities and real estate in rally mode! It's tough to give up the needele when things are really starting to feel soooo good!
i would rather have a conversation with a dennis rodman bobblehead than with hilsenrath....the fed is not winding down anything - not now not ever.....it's too late, baby.....and we really did try to fake it....
dupe
You mean the Fed would take the Perpetuity Punchbowl from the Pollyanna Party? They wouldn't dare!
For one thing, the higher interest costs would bankrupt the US Treasury, consume most of the tax revenue, and send the real estate market over the cliff faster than Wile E. Coyote chasing Road Runner! Bernanke has painted us into a monetary policy corner with no painless way out!
Just talking about it has ZERO credibility! Most of Wall St won't believe them. I don't either!
If true, Hilsie's last paragraph indicates that the Fed is trying to come to grips with the conundrum that it will be forced to up interest rates to restrain inflation, at the same time it will be breaking the federal budget with expanding interest costs. The situation is similar to the post war situation when the Treasury had greated influence over Fed policy and forced it to maintain low interest rates to avoid breaking the budget. After a period of accelerating inflation, the Treasury and Fed reached an "accord," which gave the Fed greater control over interest rates, which it has exercised ever since. It is worth noting that at that time there was still in existance "treasury currency" that the Treasury could use if it disagreed with the Fed. These were US notes (mostly $2 bills), and silver certificates (mostly $1 bills) that Kennedy threatened to issue in quantity when he disagreed with Fed policy. Unfortunately, there is no treasury currency now in existence, the withdrawal of which could be used as an anti-inflationary measure instead of depressing the bond market. I suspect that there is a secret understanding among the powers that be to maintain indefinitly the current depressed economic situation to avoid having to face this problem. The stock market bubble continues to expand to silence the voices of "investers."
If true, Hilsie's last paragraph indicates that the Fed is trying to come to grips with the conundrum that it will be forced to up interest rates to restrain inflation, at the same time it will be breaking the federal budget with expanding interest costs. The situation is similar to the post war situation when the Treasury had greated influence over Fed policy and forced it to maintain low interest rates to avoid breaking the budget. After a period of accelerating inflation, the Treasury and Fed reached an "accord," which gave the Fed greater control over interest rates, which it has exercised ever since. It is worth noting that at that time there was still in existance "treasury currency" that the Treasury could use if it disagreed with the Fed. These were US notes (mostly $2 bills), and silver certificates (mostly $1 bills) that Kennedy threatened to issue in quantity when he disagreed with Fed policy. Unfortunately, there is no treasury currency now in existence, the withdrawal of which could be used as an anti-inflationary measure instead of depressing the bond market. I suspect that there is a secret understanding among the powers that be to maintain indefinitly the current depressed economic situation to avoid having to face this problem. The stock market bubble continues to expand to silence the voices of "investers."