Is This The "Recovery" That Bernanke Believes In?

Tyler Durden's picture

It seems the Fed head is confident that we are on our way back (despite cutting forecasts) - well he should be given his efforts - but as the following chart shows, arguing that downside risks have diminished seems not to fit too well with macro reality...



The question is - if the macro situation is so clearly weak, juist why is he is discussing a taper (if not because he knows he has broken the markets)

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dontgoforit's picture

Vince Flynn died today.  RIP, brother, you were truly one of the best!   Long live Mitch Rapp!  Defender of the constitution.  We could use a few good men like that.

true brain's picture

Car Accidents? What happened to bathroom electrocution, or just going crazy and end up in a trash dump-dead. or just being rendered and disappear forever.

They're running out of ideas?

ZerOhead's picture


Michael Hastings...

A contributing editor to Rolling Stone, Hastings leaves behind a remarkable legacy of reporting, including an exposé of America's drone war, an exclusive interview with WikiLeaks founder Julian Assange at his hideout in the English countryside, an investigation into the Army's illicit use of "psychological operations" to influence sitting Senators and a profile of Taliban captive Bowe Bergdahl, "America's Last Prisoner of War."

The man obviously liked to live life dangerously... even Tyler knows to look under his car and check his brake lines every morning...
James_Cole's picture

The question is - if the macro situation is so clearly weak, juist why is he is discussing a taper (if not because he knows he has broken the markets)

We are to understand that the markets were 'unbroken' at some distant long-forgotten time in the past?

Based on historical precedent the markets seem to be acting as they usually do - business as usual. 

Midasking's picture

Ben, not to be an alarmist but looks like we could use a little increase in the QE.

BlueStreet's picture

He should say that if we had a functioning congress that could solve at least some of the monumental problems he never would done any QE. 

ZerOhead's picture

You're almost correct... The Bernanke is not totally to blame here. Unfortunately their is NO chance of Congress 'fixing' anything that it hasn't been handsomely paid first by TPTB to 'fix'... and TPTB believe that everything is just fine the way it is thank you very much...

The first thing the congress should fix is itself... followed immediately after by The Federal Reserve.

kliguy38's picture

All branches of government have been infiltrated and coopted by the "true power" ......this is all engineered including the coming collapse...... Congress is gone and will remain "gone"

MFLTucson's picture

He is a liar and he is a courrpt man and nothing more can explain the ongoing assault on Gold and this sham of a recovery!

lakeweb's picture

Yes, exactly. He works for banking and does not care for the 'recovery' no matter what he says. Sham times two...

DosZap's picture

Here's the gospel, from jsmineset.

Jim Sinclair’s Commentary

The latest from John Williams’

- Fed’s Expanded QE3 Has Monetized 78.4% of the Concurrent Increase in Treasury Debt
- Relationship of Post-2008 Monetary Base Activity to Broad Money Supply
- May Year-to-Year Inflation: 1.4% (CPI-U), 1.2% (CPI-W), 9.0% (ShadowStats)
- Real Retail Sales Still Signal Broad Economic Downturn
- Second-Quarter Housing Starts on Track for Quarterly Plunge

"No. 534: May CPI, Housing Starts, Real Retail Sales, Real Earnings, Systemic Solvency "


Suck on this one Benny.

knukles's picture

DosZ...  They're gonna be sending your ass to gritmo for reeducation, pedaling teareasonus shit like that, dude.

Dr. Engali's picture

The dow is down 180, the five, ten, and 30 year are blowing up, and the vix is down....go figure.

fonzannoon's picture

Doc if you think we have seen bullshit smokescreens we have not seen anything yet. They will peg the ten year around these levels. Once they have calmed down we will hear endlessely that the move up was because of the improving economy. They will try to push stocks up to validate the bullshit great rotation argument.

They just need to play whack a mole with that 5yr. That is not allowed.

dontgoforit's picture

Everyone needs to read Animal Farm again.  1984 is his most famous book, but Animal Farm is Orwell's best to describe the current politcal lie-spewing tripe that we suffer through each day.  We love America, but we don't love America's government.

syntaxterror's picture

Oh my, you've just upgraded to THREAT by the NSA. I'd be on the lookout for unannounced repair persons showing up at your home.

Liquid Courage's picture

Good recommendation! Did so myself about a year ago. Ah ... Good ol’ Boxer ...

    "His answer to every problem, every setback, was 'I will work harder!' - which he had adopted as his personal motto." Chapter 3, pg 28.

    "'I have no wish to take life, not even human life,' repeated Boxer, and his eyes were full of tears." Chapter 4, pg. 43

    "Boxer, who had now had time to think things over, voiced the general feeling by saying: 'If Comrade Napoleon says it, it must be right.'" Chapter 5, pg. 56

What is the character of Boxer in Animal Farm?

Boxer epitomizes all of the best qualities of the exploited working classes: dedication, loyalty, and a huge capacity for labor. Exploited by the pigs as much or more than he had been by Mr. Jones, Boxer represents all of the invisible labor that undergirds the political drama being carried out by the elites. Boxer's pitiful death at a glue factory dramatically illustrates the extent of the pigs' betrayal. It may also, however, speak to the specific significance of Boxer himself: before being carted off, he serves as the force that holds Animal Farm together.

Boxer fights bravely in the Battle of the Cowshed, and the Battle of the Windmill, but is upset when he thinks he has killed a stable lad when, in fact, he had only stunned him. When Boxer defends Snowball's reputation from Squealer's revisionism, the pigs designate the workhorse as a target for the Great Purge, but he easily out muscles the dog executioners, sparing them at Napoleon's request. His death shows how far the pigs are willing to go. When he collapses from overwork, the pigs say they have sent him to a veterinarian, when they sent him to the knacker's yard to be slaughtered, in exchange for money to buy a case of whiskey for the pigs. A strong and loyal draft horse, Boxer played a huge part in keeping the Farm together prior to his death, and was the only close friend of Benjamin, the cynical donkey.

knukles's picture

Some animals are more equal than others.

Gosh, I wonder what many of the Germans are thinking today.  Having had JFK speak about freedom at the Wall, Reagan tell Gorby to tear it down, and now a black US president telling them why its good to be spied upon as they were by the Stasi, KGB and Nazis.


Some animals are more equal than others.......

Liquid Courage's picture

Maybe blowing the dust off their copies of Oswald Spengler's Der Untergang des Abendlandes (The Decline of the West).

Hmmm ... what was that he said about "Caesarism" again?

Dr. Engali's picture

It seems that the suppress volatility, buy stocks trade is working against the Bernank.

gatorengineer's picture

Bonds will catch a bid because of the return of the carry trade, because as you say they are at the high end of the allowed range.  Nikkei should be fun tonight, so should JGB's.....

Playing DUST to 120, EDZ to 75 ish..... Thoughts?

LawsofPhysics's picture

Even a five year bond the pays 25% is still a bad investment if the price of bread in fiat is going up 300% per year.

Remember, no society or currency has ever collapsed ot died because of deflation...

fonzannoon's picture

Bonds may catch a bid but the range keeps moving higher.

TruthInSunshine's picture

The Bernank will ultimately (a process that may have begun to happen on a forceful and permanent basis) find himself stuck between a rising yield Treasury rock(et) and a very hard (asset) place.

Hippocratic Oaf's picture

The VIX is an extreme laggard, obviously...........



BandGap's picture

Just enough chaos for us to get something done!

"Never let a crisis go to waste" is a two fucking way street.

Village Smithy's picture

I figure that on the other side of every WTF the VIX is sliding panic sell is a Goldmanite buying.

Imagery's picture

The VIX is set by the "players" not we "observers".  They know exactly how this orchestrated theft is going to play out and hence no worries!

LawsofPhysics's picture

passing glimpse of a beast (inflation) through an old wooden fence as you walk down an alley.  You can't quite make it out, but you know something isn't quite right.

nbsharma's picture

i have a feeling he is being told to clean the mess before he exits.

ParkAveFlasher's picture

First he is commanded to make a mess, then he is commanded to clean the same mess that he just made.  That sounds about right for this economy.  Why should Ben be any different from any other statist union turd?

BTW, the best time for a midnight bail-in will be when everyone is in cash.

WTFRLY's picture

It is a natural solution for some, let him appear to try to clean up and that will be the final distraction and the end of the blame game. Mispriced assets? Fuck it, let them eat cake is the fed motto.

Oldwood's picture

I'm sure its just a perspective problem. Turn that frown upside down!

Boeing Boy's picture

I don't think Bernanke has a clue.  Might as well ask Greenspan.

Cursive's picture

Watching CNBS for the first time in over at least a year and what a fucking tragicomedy.  These people put BernanQE on a pedestal and act as though he controls the entire market, then they act like if BernanQE removes the punchbowl there's no problem.  You can't have it both ways, dumbasses.

SheepDog-One's picture

Man-god have we actually advanced at all in thousands of years? Same old shit, worshipping a man-god king.

Cursive's picture


BernanQE and the Fed are antithetical to every priniciple that the founding fathers held (notable exception: Andrew Hamilton).

Bad Attitude's picture

Gotta keep up the charade.

Forward (over the cliff)!

Sudden Debt's picture

the 99% are fooled and that's enough.

Shizzmoney's picture

"it's a recovery, god damnit!!!!!!111' - jack knife boot propaganda

Hedgetard55's picture

Wow, Ben just gave the middle finger to Ochoomboi, Dimon, Blankfein...

Headbanger's picture

Slip sliding away...  slip sliding awayyyy...

Debugas's picture

trust in the banking system at all times low, same bank another country


TheSilverJournal's picture

The Bernank was probably trying to drive investors out of equities and into the perceived "safety" of Treasuries in order to keep yields low by delivering a taper scare. Little did he know Treasuries would sell off too. The Fed has now lost control of the bond market.

SheepDog-One's picture

Well if Bernank actually wanted people out of equities, driving up equities 10% isn't going to cause it. 

TheSilverJournal's picture

The monetary ponzi is held together by cheap credit. His real goal is to bring yields down. He failed. He is out of control.

Seeing that trying to cause investors to move out of equities and into bonds didn't work, now the only way he can bring yields down is to increase the rate of QE. People are pretty dumb, but this should show to those who are paying any amount of attention whatsoever that exiting QE is impossible and QE will go on indefinitely (or at least until hyperinflation hits and it becomes meaningless to create more FRN's). We are entering crackup boom territory.

Village Smithy's picture

Bernanke doesn't believe there is a recovery anymore than we do. It's just that he can't come right out and say "We've spent trillions of dollars of yours, your kids' and your grand kids' money and it did nothing. Therefore today not because we've turned the corner but simply because the largest most criminal wealth transfer scheme in the history of the world has to stop sometime, I am announcing the end of QE. God save us all."