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Bland Beige Book Belies Moderate, Modest, Mild Growth (Again)

Tyler Durden's picture




 

Once again the words that dominate the Fed Beige Book are those of underwhelming medicority:

  • *FED SAYS `MODERATE' GROWTH IN U.S. WAS LED BY HOUSING, AUTOS
  • *FED SAYS U.S. CONSUMER SPENDING `GREW MODESTLY'
  • *FED SAYS `PRICE PRESSURES REMAINED MOSTLY SUBDUED'
  • *FED SAYS `EMPLOYMENT CONDITIONS REMAINED UNCHANGED OR IMPROVED'

It seems even the Fed is forced to admit that what little 'growth' there is in the US is that funded by zero-cost Federal debt: Housing and Autos. After a few trillion dollars and with stocks at all-time highs, the deafening roar of animal spirits remains subdued... which must mean we need moar... The market's reaction is nothing - reflecting the value of the report's content.

 

Full Beige Book (pdf) here.

 

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Wed, 04/17/2013 - 14:08 | 3462169 ebworthen
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`EMPLOYMENT CONDITIONS REMAINED UNCHANGED OR IMPROVED'

WTF!?!?!?

Wed, 04/17/2013 - 14:11 | 3462201 AlphaDawg
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jive talkin'

Wed, 04/17/2013 - 14:14 | 3462224 doomandbloom
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It went up , by going down.

Wed, 04/17/2013 - 14:16 | 3462240 WTF_247
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Employment improved = McDonalds job + food stamps.  Before it was just food stamps ....

Wed, 04/17/2013 - 15:22 | 3462670 Abi Normal
Abi Normal's picture

if they remain unchanged then that is a dismal picture, as it is 20+%...

These Fed banksters have no heart I tell ya, none!

Wed, 04/17/2013 - 19:31 | 3463981 JPMorgan
JPMorgan's picture

The 'OR IMPROVED' bit was clearly a add-on / after thought.

Wed, 04/17/2013 - 14:10 | 3462182 Stoploss
Stoploss's picture

Copy and Paste...

Wed, 04/17/2013 - 14:10 | 3462188 otto skorzeny
otto skorzeny's picture

boston dude arrested- green by close-USA! USA!  bright side-much employment to come in DHS and security cam installation

Wed, 04/17/2013 - 14:11 | 3462213 kaiserhoff
kaiserhoff's picture

Busy day Tylers, but you'll want to check out the lead story and graph on IBD.

The US government is now the primary lender in America, beating out the total loans by banks.

Victory for Ben the Bald.

Forward Soviet!

Wed, 04/17/2013 - 14:14 | 3462229 WTF_247
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Oh - this should be good for at least a full rescue into the close.  Can't get any more bullish than that.  The only sectors that are showing any growth are fueled by free money.  If you have a pulse you can buy a car.  Great - Go America!

Wed, 04/17/2013 - 16:06 | 3462931 optimator
optimator's picture

Buy that car!  I had a relative just out of bankruptcy a few years ago.  The let him use the incentive for a down payment.

Wed, 04/17/2013 - 14:20 | 3462281 thecoloredsky
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AGAIN!? What's next, people telling me to drink moderately??!!!

Wed, 04/17/2013 - 14:34 | 3462378 Bearwagon
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I've heard rumors of a moderate explosion in Boston ...            /sarc off

Wed, 04/17/2013 - 14:38 | 3462402 realtick
realtick's picture

the boston ball bearing backpacker bombing on boylston street is bad for the bulls &

The Stock Market Is The Economy So When The Stock Market Goes The Economy Goes With It

Wed, 04/17/2013 - 14:53 | 3462516 Cocomaan
Cocomaan's picture

I seriously thought that said, "Modest Mold Growth". Guess they were talking about all those foreclosures still rotting on the market.

Wed, 04/17/2013 - 14:54 | 3462526 Al Huxley
Al Huxley's picture

Now would be the perfect time to start the 'jawboning' again, about how this supports the idea that they can start winding down QE in August. 

 

'The modestly robust pickup in consumer activity and the moderately positive growth make us moderately modestly positive that we can pull the plug on our treasury purchase program in August without creating an modest crash in the bond and equity markets and a moderate collapse in the only modestly fragile US economy'.

Wed, 04/17/2013 - 17:06 | 3463195 tenpanhandle
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The only thing not modest these days would be the level of lying that is taking place.

Wed, 04/17/2013 - 15:00 | 3462556 Tombstone
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It is no secret that the QE experiment is failing.  A rising stock market does not equal a rising economy.  If the labor participation rate continues to fall, eventually we will reach Benny's employment target even if another job is never added.  Then what does the wonder of QEdom do?  Does more power Scotty; er Benny become the next ploy?  Certainly it will as Benny will have no choice but to floor the printing press pedel all the way to China.  $250 billion a month will be needed to support the bulging welfare state of socialist craptopia.  Central planning will for the millionth time have saved the world and provided a new vista of unending prosperity.

Wed, 04/17/2013 - 15:16 | 3462639 cutefarts
cutefarts's picture

They will never remove QE, wonder when will the unemployment rate fall below 6.5% with so little positives in the future.

Wed, 04/17/2013 - 15:19 | 3462649 hooligan2009
hooligan2009's picture

and Captain (bank of) america seems to be spitting the dummy just a little..

slightly off topic..more of a brown book than a beige book comment..

from here: http://www.bloomberg.com/news/2013-04-17/bofa-s-countrywide-agrees-to-50...

wtf does this mean?

"The settlement announced today is expected to resolve about 80 percent of the unpaid principal balance of Countrywide-issued mortgage-backed securities over which claims have been filed or threatened, Bank of America said. It will resolve about 70 percent of the unpaid principal balance of all such securities over which claims have been filed or threatened against all Bank of America-related entities, the company said in its filing.  

Unpaid Balances

As of February, the unpaid balance of these securities excluding those that are the subject of individual claims or threatened litigation, was $95 billion, Bank of America said..."

how can 500 million resolve 95 billion in "unpaid balance"..does it mean that there is 95 billion of market value in securities that are in dispute..or that these are the arrears? 500m out of 95 billion to settle total claims of (500/80% = ) 625 million. so 65 basis points of losses?

hummph..that is not even going to be the interest spread above fed funds being paid by mortgage borrowers..so the bank wins no matter what happens? just wtf is all!

Wed, 04/17/2013 - 15:32 | 3462703 Abi Normal
Abi Normal's picture

At some point in the near future, when the bottom falls out, there will be blood on the streets, as Americans will finally see the hoeplessness of the Kenyan Utopia of Unicorn fairy dust failure!

Onward Christian Soldiers, Marching toward DC...

I have hope and faith that America will right itself, but there will most likely be much carnage prior to that.  Talk about culling the herd huh?

Clasp the chin straps, put on your chinese nose guards, things could get rough jiggly puff!

IMHO

Wed, 04/17/2013 - 15:33 | 3462728 FieldingMellish
FieldingMellish's picture

No recovery here.

Wed, 04/17/2013 - 15:38 | 3462766 Karl von Bahnhof
Karl von Bahnhof's picture

Who cares...

Wed, 04/17/2013 - 15:59 | 3462894 Mr_Wonderful
Mr_Wonderful's picture

It´s a muddle-through. Somehow they´ve managed to balance their money printing against the deflationary effect from the technological revolution. And for some mysterious reason people have been going into debt to chase falling prices of overpriced stuff. It may be turning finally.

Wed, 04/17/2013 - 16:00 | 3462908 Silverhog
Silverhog's picture

Is there actually a Beige Book with soft cover and grubby finger marks?

Wed, 04/17/2013 - 16:26 | 3463022 XRAYD
XRAYD's picture

Numbed by BS, BS, everywhere!

Wed, 04/17/2013 - 20:51 | 3464281 Bunga Bunga
Bunga Bunga's picture

beige book, but I would be more interested in magazines of blondes

Thu, 04/18/2013 - 09:03 | 3465863 RiverRoad
RiverRoad's picture

It was Marie Antoinette who said, "Let them have cars."

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