"QE Was A Massive Gift Intended To Boost Wealth", Fed President Admits

Tyler Durden's picture

With Bernanke gone, the remaining Fed members knowing full well they will be crucified, metaphorically of course (if not literally) when it all inevitably comes crashing down, are finally at liberty with their words... and the truth is bleeding out courtesy of the president of the Dallas Fed, via Bloomberg.


Which incidentally coincides with Bernanke's heartfelt "admission" that "my natural inclinations, even if it weren’t for the legal mandate, would be to try to help the average person." As long as helped to boost the wealth of the non-average billionaire., all is forgiven. "The result was there are still many people after the crisis who still feel that it was unfair that some companies got helped and small banks and small business and average families didn’t get direct help,” Bernanke said. “It’s a hard perception to break." The truth, as again revealed by Fisher, will not help with breaking that perception.

We wonder how President Obama, that crusader for fairness, equality and all time Russell 200,000 highs, will feel about that? In the meantime, just like the Herp, QE is the gift that keeps on giving.. and giving... and giving... to the 0.001%.

US Income Gap Soars To Widest Since "Roaring 20s"


Record US Income Inequality In One Chart


Shopping With Bernanke: Where QE Cash Ends Up Tells Us Who Benefited


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NotApplicable's picture

Curtains being drawn back?

McMolotov's picture

Getting harder and harder to hide the manipulation. The manip-slips are coming fast and furious now.

TruthInSunshine's picture

One of the best (and simplest) charts ever to be posted is the rise of the Solos correlated with the rise Fed's balance sheet, furniture last 4 1/2 years.

Heavy flow menstruation, baby.

Shocker's picture

Increase Wealth of the Wealthy. While "everyone" else continues down.

At this rate the Middle class will be totally gone soon.

Layoff / Closing List: http://www.dailyjobcuts.com


TruthInSunshine's picture

Meant to write "rise in the Spooz in % terms against the rise in the Fed's balance sheet (in terms of BernankNotes) during the last 4 1/2 years."

I hate 'smart' phone screens.

drdolittle's picture

funny, I read it as rise in the Soros and it made sense. Been working a lotta night shifts

derek_vineyard's picture

and had ZH had the foresight to predict the extent the Fed would go....we could all sell NOW and have been rich.  instead ZH focused on fundamentals and why what the Fed was doing was wrong....instead of joining the roots of the ponzi where the money was made. 

all this ZH blabber about MOAR and they were correct, but didn't put 2 and 2 together and pump stocks.  too late now ZH, you missed it.

CrashisOptimistic's picture

People, is there some magical firefox addon that uncompresses the margin such as presently exists in the petro dollar thread?


Mister Kitty's picture

Did QE help?  Only time will tell.  Bitches.

GetZeeGold's picture



Five years into hope and change.....clearly this is Bushes fault.


I believe year 6 is when the deficit is slated to be cut in half.....I'm really looking forward to that.


Yes I did say forward.....see how I did that?

Troll Magnet's picture


CuttingEdge's picture

Wait for the Bernank to come out and say in retrospect maybe  he should have fired up the helicopters (for a "fairer distribution").

Now I'd just love to see the fuckwit hanging from one, preferably by his nuts and using piano wire (although a guillotine would suffice if ringside seats are available at a fair price).

kaiserhoff's picture

QE IS a massive gift designed for one and only one purpose,

  to save the asses of the criminal bankster class.

New England Patriot's picture

Ben Bernanke walks into a pizza joint and orders a large pizza.

The man working there says, "Would you like me to cut it into six pieces or eight?"

Bernanke thinks for a moment, "Better make it eight, I'm really hungry." 

Unknown User's picture

They are not done.  The Fed now will claim that it's in national interest for the taxpayers to take ownership of the worthless derivatives they bought from the banks at full value through QE.  And they are already working on a plan to replace Fanny and Freddy, with taxpayers directly insuring fraudulent loans.

Ifigenia's picture

Better, made a Proscription List of those 1%, certainly it could aliviate US debts.

lostintheflood's picture

some magical firefox addon that uncompresses the margin

crash, it's a bit more tolerable using chrome for that thread...

mumbo_jumbo's picture

i'm not complaining, i've never lost one dime of my retirement account.  sure it don't earn much but a buddy of mine was just crowing how his retirement was "back where it was in 2008" to which i replied mine is up from 2008 and i didn't have to go thru the turmoil of the ups and downs, slow and steady wins the race.

never mind he's still down if you include inflation....but then again so am i :(

balolalo's picture

"For every action there is an equal and opposite reaction" - Isaac Newton

If it is true for atoms, stars, planets, and apes alike, then equally so for this current age of intellectual toddlerdom.    

Humans stumbling about.   Wrecking.   Arrogant.  Wasteful. Ignorant. Greedy.  Shortsighted.  

Unfortunatley we are alive during a particularly strong and probably late tantrum, before reality sets in.  And weaning begins.   


fockewulf190's picture

The milleniums will end up being another generation of the damned, just like those born from 1890-1900, 1915-1925, 1940-1950.  More cannon fodder for the old bastards in power to play with.

Drifter's picture

"never mind he's still down if you include inflation....but then again so am i :("

Dow topped out at 14,700 in 2007.

Since then USD has lost 50% value thanks to TARP, QE, and other known and hidden money printing (and I suspect the hidden part is way more than the known part).

Today Dow would have to be 29,400 to equal its 2007 high.

Nobody talks about USD's huge drop in value since 2007, not even ZH.

Btw, in 2007 dollars gold is $650 and silver is $10.

Wahooo's picture

That giant sucking noise is the sound of the corporatist vacuum sucking up our future.

Drifter's picture


Fixed it.

icanhasbailout's picture

Obviously he got the gift from somewhere, which tells you who took what everyone else is missing.

disabledvet's picture

see comment below and "yeah, spot on."

If you're the Dallas Fed Head this has been a great policy...outisde of North Dakota everyone else has been thrown under the bus here.

Some of the numbers sloshing around on Wall Street are truly amazing...Amazon, Netflix, Google...Tesla, Facebook, Solar city. Some of these companies didn't even exist ten years ago "and now they're the industry." I fail to see how "this is all the Fed's fault."

Let's take a look at how all the Commie Countries are doing for a moment: collapsed currencies, hyperinflation, unprovoked aggressions, collapsed commodities, collapsed gold.

I agree the middle class has been taken out here...kinda scary when you think "it should have been worse." (And still can be.)

meh. wasn't always like this.

post turtle saver's picture

this is how the old and rich eat the young... metaphorically... if you gave them the chance to do it literally they'd take advantage of that, too

Flux's picture

This is a good point, Derek.

Tyler, what have you been telling everyone to do for the last five years? Buy gold? Guns? Ammo? How's that been working for you?

Yah, I know, the Apocalypse is any time now, but had I been buying into your hype for the last five years, I"d be a little pissed right now.

But then again, maybe you're just part of the misinformation as well. Hey ZH'ers ...


Hephaestus's picture

Im more wealthy now than Ive ever been before and in more ways than one. All thanks to ZH.  Blame your shitty trades on the weather and Fuck off loser.

fockewulf190's picture

Indeed, I have been accumulating hard assets since 2008 and regret nothing.  No way I´m putting my financial future into a market ripe with fraud, manipulations and microsecond HFT computers.  The shit  storm is coming and the central banks of the world are all printing fiat out of thin air in reckless abandon.  ZH has done a good job telling the situation how it really is: FUBAR.

GetZeeGold's picture



Your comment is really harshing my normalcy bias.

mjcOH1's picture

"Tyler, what have you been telling everyone to do for the last five years? Buy gold? Guns? Ammo? How's that been working for you?"


FWIW...lead and brass have been among my most successful investments.  

Heavy metals are you friend.  Granted, they don't have the cachet of Pets.com.   But Our Lady of Blessed Momentum looks kindly upon them.   And I've always wanted to be a farmer.

Flux's picture

Well, that's fair enough.

Real estate (xre.to) and the broad market (clu-c.to) have been my cash cow. I only stumbled across Zero Hedge recently, but I'm just glad I didn't five years ago. If others have averaged 20%+ a year for the past five years, more power to you. And if Zero Hedge was instrumental in your success, I'd like to hear about it.

Personally, I now have enough money to get into home ownership, I'm considering paying in cash. Outright. However, I've read on Zero Hedge that Canadian real estate is in a bubble (60% over-valued?) and that a global economic collapse will be upon us any day now. But what sways me away from putting too much stock in anything Zero Hedge promotes is their crummy track record up to this point. And by that I mean this site has heavily discouraged any investment in the market. If this is the wrong impression, please correct it.

I feel the Zero Hedge advice would be to put my money into a cabin, the rest in physical gold, and start growing vegetables.

This is what my father did, btw. And it was fine for him, but I'm not a farmer.

Drifter's picture

ZH isn't into painting the big picture, and doesn't make big-picture recommendations, nor any recommendations.

Commenters have been making those recommendations along the way, and they're not for wealth accumulation, they're for wealth preservation (against a declining currency).


Flux's picture

Ah, but you have to have wealth first to preserve it.

And if you frame the picture as one of inevitable decline, where does that leave those with nothing?

I'll tell you:

Pining away for the end of days, fervently praying for that thunderous Apocalypse.



lunaticfringe's picture

There is always one dumb-ass, who tells everyone else long before the game is over, which side has won. You sir, are that man.

Kayman's picture


When Russia bitch slaps Obama, when the Fed has a 4 and 1/2 trillion dollar balance sheet backed by 1% equity (every "asset" held by the Fed is "risk-free"- what a fucking joke), when "earnings" in P/E exclude "one-time charges" (like Caterpillars immediate write-down of it's $billion dollar boondoggle in China, when the only thing on CNN for 10 days is speculation about a lost plane (the only facts being the plane is lost and we don't have any fucking clue why), then I would take it as a sign that the best part of the pump-and-dump is behind you and not ahead of you.

ZH is and remains a counterpoint to the usual icing sugar lathered bullshit dispensed to keep the masses placated. Don't be puking on your shoes, now...



Flux's picture

Actually, I agree.

I don't see the amazing returns going forward. However, the Zero Hedge faithful should seriously apply some skepticism to a site that was instrumental in discouraging them from investing. I also think it is too late now, and for those who missed the boat ... maybe rethink your influences.

My point:

Zero Hedge is a product. It's up to you to buy into it.

Rafferty's picture

Yeah, I've been eagerly booting up every morning for the last 5 years hoping to read how the Apocalypse has brought the banksters down in flames.  Still waiting, although the present madness just cannot continue.

Eeyores Enigma's picture

Yeah derk because every knows that the only thing that matters is getting rich right.

Fuck rule of law. Fuck right and wrong. Fuck morality or ethics. Fuck humanity. Fuck the planet. Hell FUCK everything as long as I am RICH!!!!!!!

derek_vineyard's picture

if one has a choice between buying an asset that triples in value or stays flat.....which would they choose?

and when reading about financial matters.....wouldn't it be nice to have the bias tilted toward the asset that tripled? (in hindsight)---even if in the folly of it all and why its tripling?

caustixoid's picture

wouldn't it be nice to have the bias tilted toward the asset that tripled?

Good point that anyone who listened to CNBC from 2009 did better than those who read ZH.   Ouch, you got us.  But at some point the sheep will get sheered again, as they were in 2000/01, as they were in 2008.  And while it's happening CNBC is going to Kramer us up the ass telling us it's a good buying opportunity.

If you're saying to have perfect market timing, well, duh.  If you're saying to ignore fundamentals, well, that hasn't worked out for millions of home buyers.  

Sorry, what are you saying exactly?


Tall Tom's picture

all this ZH blabber about MOAR and they were correct, but didn't put 2 and 2 together and pump stocks.  too late now ZH, you missed it.


Not too late. You can Short Sell the Market as it crashes.


But still I will not participate. PRINCIPLES OVER PROFITS.


But psychopathic assholes will profit over other's miseries, won't they?


It is going to be fun with the Guillotines and ropes . Besides I like hunting psychopathic humans. They are the most thrilling as they are the most dangerous prey.


Picking off the outliers will not be too difficult to do in a Post Collapse World.


Most will not even be able to trust their security. Care to go hunting? I like the Gated Communties as they are the best. They are like a Turkey Shoot. Yeah. Fish in a Barrel.


Bring on the collapse.


I am mapping out my hunting grounds. Oh I might be killed. But I will take out many more before that time. I am old anyway.

McMolotov's picture

QE is the ultimate in trickle-down, whereby the wealthy and well-connected stand above us, pissing on our heads and trying to convince us it's raining.

aVileRat's picture

No wealth effect means no confidence in forward multiples, which means no confidence in growth stocks or forward guidance for bellweathers. No wealth effect means no risk on capital and no need for inflation hedging at the marginal buyer of securities level.

So paper gold will get slammed as inflation 2015 goes negative. Which is pretty much they want at this stage.

A Russian or Latin American blowout will also turn this whole QE thing sideways.


Soul Glow's picture

If anyone has friends who don't understand how bad all of this is, just tell them simply that the banks have doubled down on the debt.  All the banks in the entire world doubled their debt.  And that is why the next debt fiasco will be twice as bad as the last one.  Whatever you thought of the last one, twice like that.

UselessEater's picture

nah... in Australia they think more good debt is OK; so we'll skip that chat for another year.

Kayman's picture

How's that Gorgon thing going to do if Putin cuts a deal with China for Natgas.  Better hope the contracts with Japan are priced in a currency that can buy something.

Oh, and I have no doubt that Putin will call the pipeline Keystone XL II just to wipe Obama's nose in the excrement.

NoDebt's picture

One of my all-time-favorite expressions.  So appropriate in so many situations these days.