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Bernanke On Soaring Interest Rates: "We Were A Little Puzzled By That"
Almost exactly 8 years after Greenspan's now infamous "conundrum" comments about the unprecedented persistence of low, long-term interest rates, Bernanke is now "puzzled" at the dramatic rise in interest rates following his recent Taper remarks. Have no fear though, just as Greenspan noted, "I'm reasonably certain we would not automatically assume that it would mean what it meant in the past, " Bernanke said today that the "sharp rise in rates", was not about the Taper but "due to other factors, including optimism about the economy."
Perhaps more importantly, today for the first time someone, not Hilsenrath of course, had the guts to ask Bernanke the hardest question: is the Fed's "Stock not Flow" worldview broken, and was it wrong all along (as we have been alleging all along)? Of course, the implications of the Fed being wrong on this most critical aspect of monetary theory opens up a hornet's next of Pandora's boxes: just what else is the Fed wrong about, and how much will Bernanke be "puzzled" when one by one all of his flawed theories are revealed to be nothing but religious dogma.
And finally what happens to the BOJ when it too has to "taper" and it too realizes that it is all about the flow (in a country where the central bank is monetizing at a relative pace which is more than double the Fed's), and the second sentiment shifts, the entire liquidity bubble comes crashing down, taking not only Japan, but Europe - which is funded courtesy of the Japan carry trade - down with it?
To summarize: bonds collapsing - no worries... it's still the Stock... although not really... and optimism.
From today's press conference:
QUESTION: Mr. Chairman, you've always argued that it's the stock of assets that the Federal Reserve holds which affects long-term interest rates.
How do you reconcile that with the very sharp rise in real interest rates that we've seen in recent weeks? And do you think the market is correctly interpreting what you think is most likely to be the future path of the Federal Reserve's stock of assets? Thank you.
BERNANKE: Well, we -- we were a little puzzled by that. It was -- it was bigger than can be explained, I think, by changes in the ultimate stock of asset purchases within reasonable ranges, so I think we have to conclude that there are other factors at work, as well, including, again, some optimism about the economy, maybe some uncertainty arising. So I'm agreeing with you that -- that it seems larger than can be explained by a changing view of monetary policy.
It's difficult to judge whether the markets are in sync or not. Generally speaking, though, I think that what I've seen from analysts and market participants is -- is not wildly different from what, you know, the committee is thinking and trying -- as I tried today to communicate, I think the most important thing that I just want to convey again is -- is that it's important not to say this date, that date, this time.
It's important to understand that our policies are economic-dependent, and in particular, if financial conditions move in a way that make this economic scenario unlikely, for example, then that would be a reason for us to adjust our policy.
It's really the stock, stupid... (right?)
BERNANKE: And by the same token, as long as we're buying assets, we're adding to our holdings.
We do believe -- although, you know, there's room for debate -- we do believe that the primary effect of our -- of our purchases is through the stock that we hold, because that stock has been withdrawn from markets, and the prices of those assets have to adjust to balance supply and demand, and we've taken out some of the supply, and so the prices go up, the yields go down. So that seems to me consistent with the -- with the idea that we're still adding liquidity, we're still adding accommodation to the system.
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"as long as we're buying assets, we're adding to our holdings. "
Very smart man, if they weren't adding to their holdings, what do they buy assets for? Can this idiot be sent to a hospital for an exam?
Well, when they buy MBS they just think they are adding to their holdings. How many or what percentage are actually non-performing (A Blivet)?
They're all non-performing at the price they paid for them! They can't sell them! The Liars are Lying to each other about the Lies they told to their other friends who were Lying to them at the time. And etc. URRRGGH!
As has been said so many times before, were are certainly living through the biggest financial experiment of all time and while the outcome is painfully obvious to most here, the people in the ivory towers seem completely oblivious to the dangers.
the new mantra - "optimism about the economy,"
The "confidence" men are always pushing optimism. No worries, its all good.
I can't tell anymore if he really is this stupid or if he was ordered to take one for the team for some other reason.
I think he is that stupid.
I think we all know he is lying and has been all along.
My vote is take one for the team. He's already leaving, and we're seeing a whole lotta bullets getting absorbed by various people in the gov't lately.
All the bad news, coverups, distractions -- I think Kyle Bass' Japan timeline of 18 months applies here as well. The countdown timer had been set in years, now it's set in months.
Look at the macro stuff and it's pretty clear we're about to see a 2008 do-over writ large, probably by September if not earlier. Then they'll kick in the printers for the sole purpose of covering gov't expenditures.
I would have expected him to say "fuck off bitch" before "I'm kind of puzzled".
It reeks of biting the bullet.
That was a bit odd. It sure doesn't sound like the words of somebody who is in control. Never let them think you don't have the answers or see you sweat, once you do it's all over.
Am I the only one who sees stawks rallying tomorrow while treasuries calm down and everyone settles in and starts to get used to the new normal where we are sorrounded by the wonderful newfound economic growth?
Or bloodbath?
No I feel the same way. There was no panic out there. When I see some panic then I'll believe it. I will say the five year caught me off guard. I was expecting all the action to be in the ten year.
https://twitter.com/fxmacro/status/347476025220927488
Margin call very soon
The thirty year made a new low for the move too; that's real sober old big money; going away; bye-bye. Dont' want no Uncle Ben's Magic Rice. Sorry.
No, there's alwalys more than one. It'll be interesting.
The interest rates went up because of 'confidence in the economy'; well I'll be damned. I'm listening to Kyle Bass, I mean, I feel sorry for this guy, but I'm not listening. Mister "the houseing crisis is contained" is still living in the space ship La-La.
He's always so fucking twitchy when he speaks in these situations, it makes me think he's a bad liar who's job description requires him to lie constantly. I'm pretty sure he believed his own bullshit before he got this gig, but by now it must be clear to him what a gigantic clusterfuck he's caught up in.
I'm starting to believe in the Fed. Despite the stupidity of it all, everything seems to be controlled just so...
RUN!
NEVER MIND NOT BEING FIRST... JUST MAKE SURE YOUR NOT LAST
RUN!
You can try to fuck your wife with a flaccid dick, you'll still be going through the motions, but the action itself is pointless.
Sorry to be vulgar, but that exactly what Bernanke has been doing since he got to his post.
Bernanke bought one of those penis pumps online, but I think he still hasn't figured out how it works. But yes, he is going through the motions.
Economists call it pushing on a string; but yeah, that's just the polite version of it.
Economists know it doesn't work, but that doesn't mean they won't try it. Dumb fucks. They need to take a class from my old College Physics Prof. We were doing simple pulley problems, and the Old Burly Bearded German Prof said with heavy accent "Strings only good for pulling... no good for pushing!" I'll never forget that. The Business Majors were the ones having the issues in the class. I was an engineering major. No problems for me.
LOUISIANA: WATERSPOUT NEAR GRAND ISLE. NWS CONFIRMS MINOR DAMAGE. WWLTV. #911BUFF
https://twitpic.com/cy3qt7
Bernanke and the G20 CBers will soon conclude* that the only solution to the puzzling problems they are all facing, is to "harmonize" their currencies around one global standard -- IMF's "SDR".
Only then, when we have "One Coin to Rule Them All", can we expect the troubles of the world currencies, debts and economies to improve.
* CBers with dissident views will need to be reigned in. E.g. Brazil and Turkey, and their bad habits of buying golden Barbaric Relics, instead of buying Dollars or SDRs.
/s
Never mind that crap, why isn't my Apple over $1000 yet?
There's a billion Chinese that need iPods, right?
The bond market is weak because the money is no good.
The bond market is weak because it smells inflation.
When the bond bubble bursts (now seems like a good time), it is all over.
Higher interest rates equal economic death. The only way to prevent higher rates is more QE. More QE means death of the dollar.
Hey Ben, pick one.
This fool has no idea what he is doing.
His only move is to get out the door and dump this mess on Yellen.
Both are good for gold, i dont give zero fucks what he chooses.
The sooner the better in my opinion.
Exactly. Bet on the great white horse Silver. Win or place for sure.
That is exactly right. Rising bond yields will crater our "improving economy" Don't count on Yellen as my guess is that "O" will pick someone the "powers that be" can control to finish us off. It will be very interesting to see who he picks as that will be his "guy or gal in waiting" After that happens, we are finished.
Wait.... The US government have stopped issuing new bonds? BALANCED BUDGETS everyone! Seriously Ben. Fill a washbasin up with water. Watch it pour out the overflow when you put more in. Does it really matter how deep the washbasin is?
Jezus is this what it takes to become the most powerful person in the world?
Not sure why I can't up-arrow your post, but yes, good analogy. So now that the economy's so strong, I guess those $trillion deficits will just melt away like spring snow. I wonder if Ben's ever cracked open a spreadsheet or calculator and worked out what the impact of 2 - 3% rise in interest rates has on the annual interest expense on the debt. I wonder if he's ever considered what a collapse in Bond prices might do to the FED's balance sheet.
That steaming pile of MBS shit he has bought over the years is going to puzzle him too when it comes time to sell it.
"While participants continue to think that in the long run the Federal Reserve portfolio should consist predominantly of Treasury securities, a strong majority now expects that the committee will not sell agency mortgage-backed securities during the process of normalizing monetary policy," Bernanke said.
Now they have a reason to give everyone the money to increase flow.
I did not get anything in my mailbox today.
<--- Cayman Islands
<--- St. Kitts and the Leewards
I wonder where Ben will be heading when things fold up?
<--- Barack's Ballsack
<--- Barack's Asspipe
While the Goyim will be slaughtering each other, Bernanke and his Kosher buddies will be hiding in their billion dollar custom submarines.
: " ‘If you can find my submarine, it’s yours,” says Russian oil billionaire Roman Abramovich. There are an estimated 100 luxury submarines lurking around the Seven Seas and no one knows who the owners are. Anyway, for about $25 million you can purchase your own luxury submersible."
http://www.bornrich.com/for-billionaires-only-most-popular-luxury-submarines.html
Is that why Ginrich wanted a new Moonbase?
"Depth charges" for two thousand please.
VeteransToday said one got sunk off of Syria. Bombing over Damascus was temper tantrum response.
I lived for 2 years in the CAyman Islands. He's not going there. They have a saying," When the US sneezes the Caymans comes down with the flu"
"It's bigger than can be explained."
Yeah. I have women tell me that all of the time.
Time to do something about that beer belly!
So that seems to me consistent with the -- with the idea that we're still adding liquidity, we're still adding accommodation to the system.
So, how's that bukkake doin' for you Ben, getting enough liquidity?
Just like the fed and all talking heads laughed at those sounding the alarm on the housing market collapse.
Stawks will drop, interest rates rise, the deflation then the great inflation. Puzzle that bitchez. Maybe I can get gold at 1200, silver at 15. Woo fucking Hoo!!!
"I'm sorry Mr. Chairman, but, I still don't know what the fuck it is you're talking about."
The Bernank looked oddly confident and comfortable today. No flop sweat or tremor.
He must be feeling good knowing he will get out before we hit the wall.
I say he resigns before Jackson Hole.
This was a victory lap. Yellen is the bag holder on inflation. He gets to avoid becoming Helicopter Ben which was his greatest fear.
Why shouldn't he...He'll leave with the market near an all time high. It's the next Fed Chairman who has shit sprayed all over his nice clean suit when the shit hits the fan.
Am not fuckign worried to be honest... The titanic will smooth land on the aircraft carrier.
shitstain bernake forgot to mention yellen will have to perform that maneuver while being sucked into a black hole.
Ben said,"No interest raises in the foreseeable future."
Grandma has not got it easy either with the kids and the grandkids sleeping on the couch.
Ben is still humping her savings.
The money managers are still skimming bonuses and Ben has had to print $3T to cover the short fall, ( and counting).
World wide, I read, that there has been $17T printed to cover the skimming taken by money managers.
I don't blame the boomers. They never learned math.
I blame those who took the money for their own benefits.
WHO has all the money?
The J**s.
Annnnnnnnnnnnd.... It's Gone!
When investments go up, people tend to pile into them. And when an investment is going down, people tend to flee from it. Interest rates have been dropping for 30 years now and bonds have had a great bull market. Maybe it is just time for a correction. IMHO, todays miniscule yields do not justify the potential loss of value if interest rates rise. (Of course, I've felt this way for some time and interest rates continued to fall, so what do I know?)
Also, the near certainty of a more agressive Fed chairman like Yellen in the near future increases the inflation/interest rate risk for bonds. Maybe it is just that we have reached a good point for a bond correction, rather than anything Bernanke did or said.
"the near certainty of a more agressive Fed chairman like Yellen"
Kind of drawing context from your post that you consider Yellen to be potentially more hawkish than Bernanke.
You, sir, need to lay off the various recreational drugs you ar consuming.
Yellin is a dove who wishes wings for accomodating policy! She's the Fed version of Nancy Pelosi and they both hail from the same town! Imagine if Fisher were to take the helm... I don't think so...
Sorry, poor choice of words. I probably should have said "agressively dovish" wrt Yellen. I tend to regard QE as an act of agression against the dollar. But the sentence did equate Yellen with higher inflation.
You knew enough not to buy an investment yielding 1.00% with potential losses of 7% per 1% increase in rates for intermediate-term debt.
see ya Pimco ben nice knowin ya.
Boy did Gross ever get his clock cleaned. "past performance is no guarantee, etc. etc.".
WTF?
So the stock market is so hooked on cheap money ( drugs) that it falls when that cheap money faucet is threatened to be closed, EVEN THOUGH this portends a strengthening economy. That's like saying we shouldn't become too efficient in putting out forest fires because that may lead to layoffs in the fire departments.
This is what happens when you let eggheads of the dismal science run a full-scale experiment on the world's largest economy.
See: LTCM
Bernanke isn't puzzled. Bernanke is lying. The Fed doesn't set the rate - the MARKET does.
Here's how it works:
http://bullandbearmash.com/about/us-prime-rate/
The Fed has printed so much that buyers are getting higher rates to mitigate the risk. If the Fed were the only buyer of 3 month T-Bills, then they would set the rate, but they aren't and the don't.
Bubble Bernanke and the Fed you want toi consult Japan. USA=Japan, but worse.
Ben Bernanke...Ashkenazi Jew. Any other questions?
They dont even come from the place they claim is their homeland. DNA says they are from the Caucasus.
A 2012 study by Eran Elhaik[78] analyzed data collected for previous studies and concluded that the DNA of Eastern and Central European Jewish populations indicates that their ancestry is "a mosaic of Caucasus, European, and Semitic ancestries". For the study, Palestinians were assumed to be a valid genetic surrogate of ancient Jews, whereas the Druze were assumed to be non-Semitic immigrants into the Levant. Armenians and Georgians were also used as surrogate populations for the Khazars. On this basis, a relatively strong connection to the Caucasus was proposed because of the stronger genetic similarity of these Jewish groups to modern Armenians, Georgians, Azerbaijani Jews, Druze and Cypriots, compared to a weaker genetic similarity with Palestinians. This proposed Caucasian component of ancestry was in turn taken to be consistent with the Khazarian Hypothesis as an explanation of part of the ancestry of Ashkenazi Jews.
http://gbe.oxfordjournals.org/content/early/2012/12/14/gbe.evs119.full.p...
I just added that research to Wikipedia again. 'They' remove it every few hours:
http://en.wikipedia.org/wiki/Ashkenazi_Jews#cite_note-78
how is this relevant? go heat!
Uhm, they run the fucking US, you moron. Go on, hang on Ben's every word then. Its irrelevant. His ilk OWNS YOU.
"they"? Bacteria own you, and the world. In fact, you have more bacteria in and on you than you have cells. If you eliminate them you die, if you die, they move on.
they!!
http://southparkstudios.mtvnimages.com/images/shows/southpark/vertical_video/season_16/south-park-1604-Jewpacabra-clip09.jpg
not bacteria. Microbes.
semantics, right? cwutididthar?
no, bacteria
GO HEAT
a unique buying opportunity, dont miss out guys and dolls, step right up! GO HEAT!
"And by the same token, as long as we're buying assets, we're adding to our holdings."
Bernankism of the year, right there! He shoots, he scores!
Hmm, I don't suppose the rise in interest rates could be an indication that demand is drastically lower than expected. Most likely due to uncertainty about the soundeness of the lender. And, I don't see how Fed bond purchases would necessarily restore faith that the US government can repay what it has borrowed.
well, actually that's the only reasonable assumption that can be made. The market in Federal Instruments is free to express its opinion by pricing them. This is what seems to me to be "common sense"; but for some reason it's not a very popular insight.
Fed purchases create the ILLUSION that it's only YOU who questions the soundness of the lender, and that there's a robust market for government debt, and this is meant to make you question your analysis of the situation, whereby, you look at the rising prices, think to yourself 'I must be missing something, I guess they're safe after all' and buy against your own better judgement. So everybody does that, and add in the FED buying, and all the propaganda and systemic incentives to buy, and they generate, for a period a time, a robust market for something that is in fact worthless garbage.
Bend over Bennie, Bubba's got a 12-inch PUZZLE piece he wants to see if it fits....
Obviously, the Fed can't forecast. Roc's in MVt = roc's in nominal gDp or (MVt=PT). The roc in MVt rose in May - but won't now bottom until Oct.
QE should not be conducted in absolute terms. Purchases should run pari passu with the roc's in real-gDp. Anything less is contractionary. Anything above 2-3 percentage points is inflationary.
Now you know. The policy arm of the Fed is lost.
You're assuming that somehow the path they're on isn't fundamentally fucked and untenable, and that the problem is just with the way it's managed.
yields will go down again when the stock market crashes, just wait
Oh, good; well that will fix everything alright.
This time I think yields will only go down when they un-taper the taper.
The programme to buy ABS = MBs purchases, banks offloaded crap to the Fed to write new crap. Now the buyer is leaving town the banks know they have to bump interest rates to cover potential net loss on the NINJA/sub prime loans and yields are going back up.
And of course, housing market "recovery" will go into reverse, as will stock market. The "wealth effect" this time was/is a flow induced effect, i.e. eased liquidity constraints, not stock effect = improved quality of balance sheets.
The banks will be back to hoarding cash. And all those corporations stuffing their treasuries with bought back shares will have some interesting accounting adjustment "one offs" as share prices plummet and they realise they paid over the odds for their own paper.
Bernanke: Its not like we've been left holding the bag in this instance...
Question: Is that a bag you are holding?
Bernanke: Well, we -- we were a little puzzled by that. It was -- it was bigger than can be explained, I think...
You gotta learn how to use spell check tyler
Optimism?
Bernanke Spells "Recovery" F-A-I-L-U-R-E
FOMC releases a statement announcing its policy stance at 2:00 p.m. Not a change market takes it easy.
Bernanke then tricks the markets (but not those that knew) and talks about tapering which was inconsistent with the announcement. That smells of manipulation. That is twice he has done that.
The following is the word "Lie," written 2^8 or 256 times.
LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE LIE
For example the NSA director went before congress and was asked if he is actively spying on Americans. He lied. Outright full-on straight up lied. 14 times. When the Snowden leak broke, you know what they did? They made up 50 false episodes of how their spying was, um, in our best interests. So when confronted with lying, they lied more.
Now as for Bernanke, is there really anyone out there who thinks the guy is doing anything other than lying?
I thought the NSA, embracing Newspeak in all it's emergent glory, 'told the least untruthful version of events' or words to that effect. See? Much better than 'lying'.
If ya think about it, this shit is actually pretty funny.
He's a magician. He makes wealth disappear for those of us who are the unwashed.
Thank you Mr Bernanke. Please do all you can (and you are) to crash the system.
Is this the new world war Z trailer? slobbering zombies.
I love the religious dogma characterisation.
Tyler must have seen that on somebody's twitter or zerohedge bio
Blah blah blah, you know what, Bernanke?
When people are afraid of prices going lower, they often sell bonds (even treasuries). When people are afraid of inflation going higher they often sell bonds (even treasuries). If there's any improvement in the economy, at all, (even if only as reported by the media) people often sell bonds (even treasuries). When the bond prices go lower the rates rise.
How could they have NOT expected the rise in rates that we have seen? I would've been shocked if the rates hadn't risen by the relatively small amount which they did -- in total percent, if not as a percent of change. Maybe all that was required, was a mention of a "taper", to remind everyone how this process works (regardless of how many years in the future it might actually be until the taper actually occurs).
$#|t, all you have to do is look at a long-term chart, with volume, of TLT to figure out what is happening. Maybe that method is too unsophisticated for the Fed.
Wake me up when the Fed gets to buying 100% of the treasuries issued, instead of only buying most of them.
The United States uses drones for surveillance in some limited law enforcement situations, FBI Director Robert Mueller said on Wednesday, sparking additional debate about President Barack Obama's use of domestic surveillance.More:
FBI says it uses surveillance drones on U.S. soil
They made a movie about this recently called 'Now you see me'...
https://www.youtube.com/watch?v=KzJNYYkkhzc
"Come in close...Cause the more you think you see, the easier it will be to fool you..."
"1st rule of magic, always be the smartest guy in the room."
He's no fail, I just bought more gold and silver. He's doing a great job holding down my fucking costs. He's a cocksucker for sure, but you have to take advantage of his strengths. On to the Japanese Open!
Seems to me the most "relevant" thing I heard today is when Ben advocated the SEC demand a floating NAV in MM Funds. A breaking of the Buck is what could send this all into the shredder, at least in my estimation.
Not only did this space cadet miss the yield spike today, I believe he actually thought the yields would drop. THAT'S disconcerting!
I have to wonder what is the real goal of the Fed? Is it to prop up the stock market? To force inflation? Push down interest rates? I wonder if the real unstated goal of the Fed and other central banks is to do whatever it takes to get gold below $1000 regardless of the consequences. We know it's not about jobs and the economy. But since gold has stubbornly risen above $1000 and beyond and jawboning by the Buffett's and Bernanke's of the world didn't crush gold, is tamping gold prices down the true intention behind Fed actions. It seems pretty important to government, central banks and Wall Steet that gold ownership be frowned upon, discouraged and openly mocked.
I'm not saying it is the focal point, I'm just asking an honest question which probably has no honest answer. There seems to be glee in the media anytime gold takes a hit and it's all the way down to 1300 and change and I can remember not too long ago that 1300 was considered unthinkable and speculative and the top of a giant bubble. Perhaps gold confiscation will not take place, but take any and all action to drive the price down to the ground to where the much discussed confiscation would never be necessary.
The only goal of the central bank is to make sure the banking system, which primarily consists of too-big-to-fail private banks, is kept alive.
When you hear of people dying in an earthquake halfway across the world, you may feel genuinely sorry, but at the end of the day your life will go on and you will do what it takes to protect yourself and your own children.
The central bank thinks about the people in the broad economy just about as much as you think about the people who died in the earthquake.
And the central bank thinks about JP Morgan and Goldman Sachs like you think about your children.
So true!!! one of the best, clearest posts on ZH for a long time
Well put. Now how can an outsider to those institutions actually know what specifically is in the best interest of JP Morgan and Goldman Sachs outside of the average vitriol or snarky comments that are made day in and day out? Is it as simple as their client fee's regardless of the how or the what which would make it impossible as an outsider to ever read the tea leaves so to speak? Their operations appear to be the classic "a mystery wrapped in a riddle inside an enigma". Based on Fed actions, then keeping interest rates near zero is what has been in their best interest which doesn't do anyone but a borrower any good. Sorry to sound so ignorant. I have spent zero time in the industry and very little time considering the "real" function. I do know of the Chinese Wall that is supposed to exist within the firm and does to the general public but is obviously a joke to the insiders of the investment banking industry.
Risk-free spread using other peoples money, coupled with a system that also allows them to gamble that money in the markets with the possibility of greater returns, and a guarantee to cover losses in the event of individual or systemic failure (remember TARP) , is in the best interest of JPM and GS and the rest of the crew.
And to think we killed that nice McVeigh fella!
: "I have to wonder what is the real goal of the Fed?"
The "real goal"? To create so much debt that the Talmudic gefiltefishes will end up taking every piece of real estate in the United States. You don't believe me? Read the transcript of James Traficant's speech before Congress on March 17th, 1993.
Traficant explains:
" In 1933, the federal United States hypothecated all of the present and future properties, assets and labor of their 'subjects,' the 14th Amendment U.S. citizen [U. S. citizen], to the Federal Reserve System. In return, the Federal Reserve System agreed to extend the federal United States corporation all the credit "money substitute" it needed. Like any other debtor, the federal United States government had to assign collateral and security to their creditors as a condition of the loan. Since the federal [corporate] United States didn't have any assets, they assigned the private property of their "economic slaves", the U.S. citizens as collateral against the unpayable federal debt. They also pledged the unincorporated federal territories, national parks forests, birthcertificates, and nonprofit organizations [which includes the churches], as collateral against the federal debt. All has already been transferred as payment to the international bankers."
http://mhkeehn.tripod.com/Traficant.pdf
Well that's weird. I didn't know Traficant had any sense. I thought he was just a nut with a weirdo hairdo.
the goal is to steal. Fed on one side, IRS on the other, military & militarized police to keep the flow in the intended direction.
what a dort ...
And THIS is one of the most powerful men in the free world. Oh My God!
2:00PM - Ben Bernanke, "The economy has picked up enough steam that we can begin to withdraw excess liquidity from the system, which is no longer needed to support the stock market"
2:10PM - Ben Bernanke - "Hey, why is the stock market tanking"?
Fvck all the BS spewing forth from the statist's mouths - before this is over, the Fed will be QE'ing $Trillion per month or more. FORWARD Goddammit!!!
Why would tier 1 capital dry up though if he doesn't taper? I don't understand, isn't he giving the banks free money to buy USTs?
The free market is never puzzled, it always knows the answer and does what it needs to do. That he will find out.
Haha, Free market.... nice one.................
all our problems started in 1913.
END THE FED
I think Ben may actually be a sincere guy, but he was put in an impossible situation, i.e., he actually thought the Fed could "improve" the economy.
willingful ignorant lapdog does not equal sincere.
big ups on giving him the benefit of the doubt, however.
"Sincere"?? Hahaha!! Watch the video I have attached. The guy who loans the Duke more money than he can possibly pay back is also "sincere".
http://www.youtube.com/watch?v=ZIvaBOxHDj0&bpctr=1371689366
http://www.youtube.com/watch?v=6wA9aCgUob8
North American Union 2013
There is an agenda in place to promote globalization. Step by step it is happening. You do not understand what is happening behind the scenes.
Elimination of the middle class has taken place. The transfer of wealth is clear to see. It won't stop here. This isn't over. Delays may occur but only to quiet the public opinion.
i like your optimism. i'd like to think the best of people, all them also. sometimes - i really wonder what
motivate bernake. is it the same thing as the wall st. ceo's? jamie and lloyd play are really simple game -
'how much am i worth'? bernake? it was the power to prove he knew more than anybody. and his insecurity at not
being a big rat - he still wanted to be an insider. take greenspan -- what an ugly joke on us. seperated at birth from nyc mayor ed koch.
look at the pictures/genetics. all they wanted was the attention- and the power.
The derivatives are all cleared now? Everyone's been sufficiently bribed now? Fucking unbelievable.
The burning question in my mind is the whole Obama/MSM machine incompetent and evil or is it the other way around?
I was discussing with a cop one time about the kind of criminal that if he put as much effort as he did into working for a living as he did into taking other peoples stuff would be ten times better off. Our conclusion was that the essence of evil is messing with other people because it is fun to them, because they think they can get away with it. A former thug said what usually happens is some other thug takes your stuff and kills you in the process.
"The mills of the gods grind slowly but the grind exceedingly fine."
Low road is the bumpy road. High road frees up time to spend with the family. Only confirms these individuals are weak links in the chain. They'll spend the rest of their short lives looking over their shoulder, expecting their justified retaliation.
GEORGE ELIOT, The Spanish Gypsy
http://www.notable-quotes.com/r/revenge_quotes.html
This simply is not true for government thugs. They can do much less work and do much more stealing. They have the "law" or the claim of law or the ability to change the law and tax-funded guns & ammunition to back their activities.
Bernank stating that they are puzzled by the bond rout, and higher interest rates is fucking shocking.
You mean The Great Oz is puzzled? How can that be? He assured us!
I do notice hou se sales have frozen. IN my area the mortgage rates are now 5% at best for perfect credit with a good job and 10% down .... mortgage rates mor elike 7-8% for most others. Even a new doctor down the block starting out told me "th ebes tthey could do is 7.85%" for him....ouch!
It gets worse. I have a capital negative property, that I did not buy and have no debt against, that did not get sold today. Not even an offer. That fucking sucks but that is what it is out in the brush market. Cityboy Boomer was the potential buyer but figured out that the place is a lot of work. Don't I know that all too well.
I don't know. Over the years, I have heard a lot about how folks should buy a piece of land where they can grow a garden and such and be self sufficient. Well, I own said property, with plenty clean water mind you, and do not have a lot of offers. What a bunch of interweb bravado that turned out to be from the city boys who were all going to move out of the city and live off the fat of the land. Sounded like a good idea at the time I guess but you never heard me ever say that.
no one said it was easy but when things get ugly, getting off the grid is the way to go. My uncle and his family for one have moved out of the Twin Cities (Anoka County) up to a little ways south of Milaca and have a ton of land, goats, chickens, rights to corn land, lots of pheasants, grouse, great hunting dogs (new English setter included--I have two of them).
It's not easy but having one's own 'Galt gulch' is the way to go. At this point I can really only buy PMs given my financial situation (I'm 22) but self-sufficiency type commodities/land is still a high priority.
My parents own a cabin an hr. south of Int'l Falls in Northome, and I think that would be a great place to go to get out of dodge (the city) as THSTHF. Good fishing, lots of deer and grouse around those parts, off the grid, down to earth/common sense folks. And near an int'l border, too, if it so happens Canada is more receptive to liberty.
The time has come for a new system. The patriot act was designed to attack the United States of America and foreign sovereigns by those with wealth over 1 billion dollars. It serves to stop those without wealth from accumulating it. The arrest of those that have stolen the world's wealth and the re-distribution of that wealth into a non-central banking open source monetary system is upon us. Humankind will prevail and those guilty of the crimes against humanity will be brought to justice.
End the FED.
"Pay no attention to those bond vigilantes!"
The picture of Bernanke was taken when an aid whispered in his ear that Tony Soprano died. What a blow.
Bernanke is basically buying debt at no interest, but the deficit is decreasing. As planned. As the deficit continues to decrease, other buyers should step in, because there's profit to be had as interest climbs on future debt. Then Ben(or Janet) can stop buying. Yea, it's a highwire act without a net, but there's a foreseeable path to safety. It starts with confidence.
A rising stock market creates confidence and optimism, which should produce more spending and economic growth. Elevated, but controlled inflation will inspire more buying of government debt. Steady growth with contained inflation is key, but confidence is critical initially. He's working backwards to try and achieve his goals by starting at the market to influence more spending, and then more debt buying. So far, it's working...slowly.
: "other buyers should step in, because there's profit to be had as interest climbs on future debt."
And how is the government going to pay the higher interest without printing more money?
Bernanke is puzzled ?.... Anybody that is paying attention knows we are in a big hole. The "Masters of the hole" are in the hole digging deeper with the same shovels that got us here.
Yeah! Any minute we should be out, but it is a little puzzling that it is taking so long.
Steady growth? What the fuck are you taking about? Some fake bullshit growth number pumped up by dollar printing. Go shovel that shit somewhere else Dorthy
Write your congressman! Write your senator! Wait...the only thing they are concerned about and work diligently at is being RE-ELECTED, which leaves us with....Oh, shit - let me tell you how seriously fucked we are..................
Puzzled?!
Like Rubic's Cube?! or Sudoku?!
maybe he needs some help from this guy:
http://www.youtube.com/user/oskarpuzzle/videos?flow=list&sort=dd&view=0
Given the size of Bernanke's portfolio, its duration, and the move today, this was probably the greatest single day loss in any portfolio in human history.
If it's any consolation, Ben, try some of these ego salves from other markets:
"You haven't lost if you haven't sold"
"Time to back up the truck"
"I just checked, and all my little bonds are still there, just like yesterday"
"That's only the paper price" (mine are electronic, not paper)
...but, he just said he doesn't want to buy any more, but MAYBE that was just like, a clever ploy on his part, to bust the price so he can BTFD, and tomorrow he'll be back in the Treasury market, buyin' like crazy! Man, what a GENIUS this guy is!
Bernanke doesn't care. After all, when you throw money from a helicopter some losses are to be expected. Ditto for the BoJ and the Chinese Central Bank.
But some of the other holders of bonds may not be so pleased tonight.
"Bonds," "Markets" and such will no longer be needed under the TPP Treaty.
Just a Mark on your body to buy from The Corporation.
you already have the mark. We all do. it's called DNA.
Hahaha Wow this is like going in for Brain Surgery and hearing your Neurologist slurring his words while holding Long Island Iced Tea. "Yooour gonnna be justt fine. I I I Promise Trrrust Me."